Registration under Karnataka Shops Act

THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT 1961 provides for the regulation of conditions of work and employment in Shops & commercial establishments in the State of Karnataka.

Every Shop or Establishment carrying trade, business or services within the notified areas of State of Karnataka, compulsorily, within 30 days from starting the business shall register his establishment under this Act.

Secondly, based on our past experience, we have short listed the most commonly asked questions by the companies regarding Karnataka Shops Act. We are sure the following FAQs will answer most of your questions!

The entity can be registered under Shops Act within 15 days from the date of filing the application.

List of documents

Particulars

Photo of the authorized Signatory

Proprietor / Managing Partner / Director – 2 photos

Identity Proof of the authorized Signatory

PAN card copy / Driving License / Voters ID

Address Proof of the entity

Rental Agreement or Property Tax receipt (in case of own premises)

Statutory document

Partnership Deed / Incorporation Certificate

Authorization Letter

To be signed by authorized signatory as per the prescribed format

Employees

Number of employees

No of employees

Fees (Rs.)

No Employees

250/-

1 to 9 Employees

500/-

10 to 19 Employees

3000/-

20 to 49 Employees

8000/-

50 to 99 Employees

15000/-

100 to 250 Employees

30000/-

251 to 500 Employees

35000/-

'Shops’ includes offices, storerooms, godowns, warehouses, whether in the same premises or otherwise, used in such connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory.

Commercial Establishment means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a café or any other refreshment house, a theatre or any other place of public amusement or entertainment.

Registration certificate is valid for 5 year period and it has to be renewed thereafter. However, changes such as address, number of employees, etc., to be notified to the registration authority, in the prescribed form, within 15 days after the change.

Apart from the Government Offices, Establishments for the treatment or care of the handicap or mentally unfit, Offices of legal practitioners and medical practitioners in which not more than 3 persons are employed are exempt from the registration under this Act

This Act deals with Weekly Holidays, working hours, issue of appointment letters, attendance of employees, etc.

• After each month salary shall be paid before 7th date of next month.
• Working period of any employee should not exceed 48 hours and 58 hours including extra working hours
• End of the year, counting the working day of the employees for present year; 1 day per 20 days as earned leave and 1 day per 30 days as sick leave shall be calculated. This leave account shall be recorded in the format ‘F’
• Any employee who has completed 180 days service to the establishment cannot be dismissed without prior notice
• Every employee shall be entitled to preserve earned leave for 40 days
• The employment of children below 14 years is prohibited under Section 24 of the Act
• Young persons and woman shall not be employed during night, between 8 pm to 6 am.
• The name board of every establishment shall be in kannada and if any other language is used, it should be below the kannada version

• Use format 'A' ; for Establishment registration/Renewal/To report change of information.
• Use format 'P' ; to fix the different day as the weekly holiday.
• Use format 'F'; to maintain leave records and Use format ‘H’ ;to give the copy to the employee.
• Use format 'T'; to maintain daily attendance of employee.
• Use format 'R'; to get permission to allow women to work after 8 pm.

For each branch separate registration has to be done.

Registration

Within 30 days

Amendment

Within 30 days change of address, change of directors/partners, increase in the employees

Renewal

Every 5 years

New branch

New registration

Annual filing

Form U 15th of January

Bonus

Form D

Other registration required to start the business :

• GST Registration

• Profession Tax Registration

• MSME | Udyog Aadhaar Registration

• Employee Provident Fund Registration (PF Registration)

• Employee State Insurance Registration (ESI Registration)

• STPI Registration or Non-STPI Registration

• Import Export Code ( IEC)

• Trade License from BBMP