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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.

Who has to register?

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.

We at Balakrishna and Co., Bangalore help the entities to obtain new registration, renewal, amendment of existing registrations, filing of annual returns, etc. Our team is well versed with Shops Act matters. In case, you need these services, we would be glad to assist you. Please write to contact@balakrishnaandco.com

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!

+ How much time does it take to obtain the registration?

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

+ What documents are required for obtaining the certificate?

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

+ How much Government fees is to be paid to the department

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/-

+ What is the definition of shop or establishment?

'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.

+ What is the validity of the registration?

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. 

+ Any shop or establishment is exempt from registration under this Act?

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

+ What the major regulations covered under this Act?

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

+ Can you elaborate some of the interesting regulations?

  • 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 

+ What records are to be maintained by the shops or establishments?

  • 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.

+ Should the registration be done for each branch / each location of the company?

For each branch separate registration has to be done.

+ Compliance Ready Reckoner under Shops Act

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 :

Want to consult us?

  • Ph: 9845721255 / 9448080886,
  • Balakrishna & Co|Chartered Accountants,
  • # 24,3rd Floor, Above State Bank of India,
  • 10th Cross, Wilson Garden, Bangalore - 27.

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