Shops & Establishment Registration

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.

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 7 days from the date of filing the application.

What documents are required for obtaining the certificate?

Government fees to be paid to the Department

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.

Validity of the registration

Registration certificate is valid for 5 years 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.

Major regulations covered 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

Records 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 under Shops Act