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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

  1. Working Hours

    • Limits working hours and prevents excessive overtime

    • Ensures employees get proper rest

  2. Wages

    • Ensures fair and timely payment

    • Protects against wage exploitation

  3. Employment of Women and Children

    • Prohibits employment of children below the legal age

    • Restrictions on night shifts for women

  4. Leave Policies

    • Defines entitlements for earned leave, sick leave, and public holidays

  5. 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

  1. Application Submission

    • Apply within 30 days of business commencement

    • Submitted to the local Labour Department

  2. 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

  3. Inspection

    • Labour Department may conduct site verification

  4. Certificate Issuance

    • Must be displayed at the business premises

    • Valid for 5 years

Processing Time: 1-5 business days

Renewal & Compliance

  1. Renewal

    • Valid for 5 years, requires renewal before expiry

  2. Compliance Requirements

    • Maintain accurate employee records

    • Adhere to safety and wage regulations

  3. 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!

 

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Contact us

Address : No1197, Falak Complex, 22nd Cross Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102

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