Shop & Establishment Act
Required for all commercial establishments.
Karnataka Shops and Commercial Establishments Act, 1961
Scope and Coverage
Category | Definition & Coverage | Purpose |
Shops | Retail stores, salons, service providers (e.g., repair shops, fitness centers) | Regulate operations and ensure fair labor practices |
Commercial Establishments | Offices, financial institutions, trading houses, insurance companies, hotels, restaurants, cafes, entertainment venues | Protect employees’ rights and oversee business operations |
Exclusions | Factories (covered under Factories Act, 1948), Industries (Industries (Development and Regulation) Act, 1951) | Not governed by this Act |
Major Regulations & Purpose of Registration
Working Hours
Limits working hours and prevents excessive overtime
Ensures employees get proper rest
Wages
Ensures fair and timely payment
Protects against wage exploitation
Employment of Women and Children
Prohibits employment of children below the legal age
Restrictions on night shifts for women
Leave Policies
Defines entitlements for earned leave, sick leave, and public holidays
Health & Safety
Mandates a safe and hygienic working environment
Includes provisions for safety equipment, emergency exits, and sanitation
Benefits of Shop & Establishment License
Benefit | Description |
Legal Compliance | Ensures adherence to labor laws and prevents legal penalties |
Employee Protection | Guarantees fair working conditions, wage security, and leave entitlements |
Business Credibility | Enhances trustworthiness and professional image |
Access to Legal Benefits | Provides a framework for resolving disputes |
Operational Efficiency | Encourages structured operations and compliance |
Safety & Health Compliance | Reduces workplace hazards and ensures emergency preparedness |
Business Expansion | Simplifies branch registration and attracts investors |
Documentation & Record-Keeping | Promotes structured records for legal compliance |
Tax Benefits | Possible tax deductions for compliant businesses |
Employee Retention | Ensures job security and fair treatment |
Registration Process
Application Submission
Apply within 30 days of business commencement
Submitted to the local Labour Department
Required Documents
Business address proof (rental agreement, utility bill)
PAN card and ID proof of owner
Mobile number, email ID, number of employees, nature of business
Inspection
Labour Department may conduct site verification
Certificate Issuance
Must be displayed at the business premises
Valid for 5 years
Processing Time: 1-5 business days
Renewal & Compliance
Renewal
Valid for 5 years, requires renewal before expiry
Compliance Requirements
Maintain accurate employee records
Adhere to safety and wage regulations
Penalties for Non-Compliance
Fines, legal action, or impact on business reputation
Additional Compliance
Along with Shop & Establishment registration, businesses may require:
✔ GST Registration
✔ Professional Tax Registration
✔ MSME/Udyog Aadhaar Registration
✔ PF & ESI Registration
✔ Trade License from BBMP
✔ Import Export Code (IEC)
Role of Taxfame in Registration
Expert Guidance: Assistance in legal compliance and documentation
Application Filing & Follow-up: Ensuring accurate and timely submission
Compliance Advisory: Ongoing support to meet statutory requirements
Renewal & Updates: Handling license renewal and amendments
Contact us to receive your certificate within 1-5 business days!