How to register your business under The Karnataka Shops & Commercial Establishments Act, 1961

Who needs to register?

All business establishments (with or without any employees) in Karnataka are required to register under the Karnataka Shops & Commercial Establishments Act, 1961.  This is an important labour state level compliance requirement.

How to Apply

Application in Form-A duly completed with supporting documents are required to be submitted to the Labour Inspector with necessary payment towards registration fee. Typically, the jurisdiction of the Labour Officer is based on the locality in which the business is housed from.

Business with special needs – Long Hours and women workers

Establishments working on holidays or beyond working workings are required to apply separately for permission from Labour Officer.  Similarly, establishments seeking to employ women beyond the permitted closing hours should obtain permission separately from concerned Labour officer.

Renewals and Changes

In case of any changes such as increase in, change in Address etc same form – Form A to be used. Certificate of registration is required to be renewed once in 5 years. If the company has more than one office/ branches each branch has to be registered separately.  Each Company / branch has to be registered in different circles based on their locality. (Locality will be on PIN code basis)

Registration Fee Structure

Sl. No No of employees Fees in INR
1 NIL 250-00
2 1 to 9 500-00
3 10 to 19 3,000-00
4 20 to 49 8,000-00
5 50 to 99 15,000-00
6 100 to 250 30,000-00
7 251 to 500 35,000-00
8 501 to 1000 45,000-00
9 above 1000 50,000-00

Prohibited activities

  • The employment of children below 14 years is prohibited.
  • Young persons and woman shall not be employed during night, between 8 pm to 6 am. Establishment requiring them to work between 8 pm to & 6 am are required to obtain a special permission after fulfilling certain welfare measures such as providing security & transport facilities for employees engaged in Night shift, etc.

Rules & conditions to be followed

  • Business establishments in Bangalore should not open before 6.00 am and the closing hours cannot be after 8.00 pm.  Business establishments in other cities were permitted to open upto 9.00 pm. If any organization requires working beyond the closing hours, a separate permission from Labour Officer is required to be obtained.
  • The name board of every establishment shall be in Kannada.  If any other language is used, it should be below Kannada version

Important registers to be maintained under the Rules

(a) Register of leave with wages Form–F

(b) Visit book

(c) Appointment order in Form –Q

(d) Notice to be exhibited on weekly holidays in Form P

(e) Registration certificate to be exhibited in Form C

Documents required for registration along with Form A

  1. Incorporation Certificate of Company
  2. MoA & AoA
  3. Rental Agreement/ Lease Agreement of Company
  4. Company PAN Card
  5. Address Proof of Director – Lease / Rental Agreement
  6. ID Proof of Director – Pan Card / Election Card/ Passport/ Driving License
  7. List of Directors

Information required for filling up of Form A

  1. Name of The Company
  2. Postal Address
  3. Telephone No
  4. eMail Address
  5. Details of Director/ Managing Director/ Proprietor  – Address, Ph.No, eMail ID
  6. Details of Authorized Signatory (in case whose is signing in the place of Director)
  7. Nature of Business
  8. Date of Commencement of Business
  9. No. of in the Company (Male & Female to be mentioned separately)
  10. Weekly Holiday

This article attempts to provide a bird’s eye view of the applicability, registration and salient features of this labour enactment for education purpose only.

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32 Comments

Filed under 2011, accounting, March 2011, Payroll

32 responses to “How to register your business under The Karnataka Shops & Commercial Establishments Act, 1961

  1. syed

    is there any online facility for registration of shops & establishment in Karanataka?

  2. Akash

    Nice and clear. Can you please let us know on Service Tax registration process, Registering a Company as Pvt. Ltd with do/don’ts

    Thanks in advance

  3. Meenu agarwal

    By what time tthe registration is required after incorporation of Company?

  4. pallu

    whether xerox comes under this act

  5. A Kotrabasava Rajendra

    Is their any online registration faciltiy under karnataka labour act.

  6. please describe,
    1) is we do some business in home with home address as office address?
    2) If not then how to make home as office?
    3) to whom I have to apply, address, etc.
    4) Is there any separate officers are available for every area? so that I have to apply to him only.
    5) Their website detail to get more details

  7. Gayathri

    How to know that a company falls under particular circle

  8. shaili

    Hi,
    One of our client company was incorporated in 2009,registered office is in Bangalore.They have not registered them selves under S & E Act.
    Can any one suggest me the further procedure what to do in such case??
    As per the S & E slabs they fall under 1 – 9 employees slab since they have 9 employees..Can they register for next higher slab voluntarily??
    Please advise…
    Thanks & Regards,
    Shaili

    • Hi

      Any establishment (with Nil employees) has to be registered with S & E with in 30 days from the date of commencement of business.

      Since your client company is incorporated in 2009 you have to see when is the actual business started in Bangalore and on that basis you have to register your business with S & E.

      S & E certificate will be issued for 5 years. If your client company stared in 2009 the certificate will be from 2009 to 2013.
      Now if you register your client company with S & E you may loose 4 years (because date considered for registration is from 2009).

      You can register you establishment for higher slabs if you know that company is hiring more employees in near future

      Regards

    • nikil chandra

      yes they can register

  9. Somedutta

    where exactly is the office for this registration in Karnataka?

  10. smitha

    i would like to start a proprietorship firm , mainly in to wellness , i am planning to make the office on the first floor of my house . as i have not yet started the business how to go further , kindly help me

    • You have referred to two aspects i.e. nature of business as wellness and the legal form to be one of a proprietorship. Typically a business has to have many registrations under different enactments. For e.g.

      1. Shops & Establishments under Labour Laws.
      2. Karnataka Professional Tax Act – As a commercial establishment
      3. Karnataka Professional Tax Act – As an employer – This is applicable if you wish to employ one or more persons in the wellness center.
      4. A retail business which caters to end consumers requires a Trade License, which typically is issued by the local Municipal Corporation. For e.g. in Bangalore city it is the BBMP.
      5. The wellness Center may provide both services and may sell products viz Ayurvedic or Homeopath medicines/cosmetics. If the activities cover both services and sale of products then one needs to examine the need to register under The Service Tax Act and Karnataka Value Added Tax. Service Tax registration is required if your annual turnover is likely to exceed Rs 10 lacs. VAT Registration is required if your annual turnover is likely to exceed Rs 5 lacs.

      However, there requires to be more specific information on your business plans to be able to give you actionable advise. Feel free to call 080-67586758 to contact Mr.Mugunthan.N. and take an appointment.

  11. Hi All,

    Now i am working as a freelancer for many companys in ID field & I would like to start a proprietorship firm it is a IT Enabled Services Providing Company With Distribution of Electronic Recharges also. with following services
    1. Search Engine Optimization
    2. Web Design & CMS
    3. IT Consultant
    4. Application Development Services
    5. E-Commerce Solutions
    6. API Integration
    7. Mobile – Web Integration
    8. Electronic Voucher or Recharge Solutions

    In Nature of business what should i select & planing to make my office in my Home only in kanakapura what is the procedure to start my business.

    Can i use Inc. (incorporated) in front of my company name by registering my company under Karnataka Shops & Commercial Establishments Act, 1961

  12. Nagen

    Does Annual Return is compulsory to file in Form U?
    What are the consequences if we have not made.

  13. raghu

    What are the documents to be submitted to get registered under shops ad establishment in Karnataka in case of proprietorship organization?
    I wanted to start housekeeping services but except pan and office rent agreement i don’t have any other documents mentioned – like Incorporation certificate.
    So can i get registered under shops and establishment with my pan and rent agreement?

  14. wilson

    plz tel us how to REGISTRATION the company under Karnataka Shops & Commercial Establishments Act, 1961

  15. Shruthi

    I am based out in Bangalore. Planning to start an Online store. Should I register my online store under shops and establishment? Please help.

  16. Jagadeesh

    i would like to start a proprietorship firm , mainly in to manpower consultancy in Bangalore, as i have not yet started the business how to go further , What are all the documents required to register kindly help me

  17. Prashanth

    Registration is now online at http://www.ekarmika.com/

    List of Scanned Documents to be uploaded:
    Proprietor / Managing Partner/ Directors Photo
    Address proof for the establishment /shop (Rental /lease agreement etc.)
    Identity Proof of the owner/ authorised signatory (PAN card/ Driving license/Voter Card etc.)
    Statuatory Documents (Partnership deed/BBMP trade License/Incorporation Certificate /Memorandum of Article)
    Authorisation letter for Authorised signatory / self attestation Letter for Owner
    Challan /Payment Receipt /Transanction Receipt
    Duly filled Registration Form signed by owner / Authorised signatory

  18. Arun

    i want to start a business where we do binding of books, paper cutting etc. should i register under shops and establishment act

  19. Hello,

    We have a travel company LLP, registered in India. But we have 1 employee working from delhi, 1 from kolkata, 1 from Port Blair and 2 from Bangalore. Do we need to deduct pt from all and submit to KA or to the respective state?

    • On Applicability of PT registration,

      Delhi – No registration is required.

      Kolkata – Registration is required and PT to be deducted and paid on a monthly basis

      Bangalore – Registration is required and PT to be deducted and paid on a monthly basis

      Port Blair – Not sure. Checking and will revert.

      PT deduction and Payment

      • PT has to be deducted as per the respective PT slab of that state even if there is one employee.
      • PT to be deducted and remitted in the respective state itself.

      • Purushotham

        Hi
        Now Registration of commercial establishment under Karnataka Shops & establishment is made online – http://www.ekarmika.com

        Commercial Establishment without any employee has to register with Minimum fees i.e. Rs. 250/-

        Procedure to Register on line

        First we have to register company name with Dept portal to get login ID & PW. Once you register on line Login ID & PW will be sent to Mobile No & eMail ID Provided
        After getting the Login ID & PW we have to Fill in the required details & to submit the same
        After submitting the required details Form A got generated which need to be signed & to be up loaded along with other documents mentioned below
        Once documents got uploaded Acknowledgement will be generated
        Along with the Acknowledgement hard copies of the documents need to be submitted with the concerned Inspector for final approval
        Once it is approved we can down load the Registration certificate online
        Registration is based on the BBMP ward Nos
        To make registration fee payment we need to download the challan from the site & payment is to bade made at Shivaginagar SBM
        Registration fees is on slab rate as mentioned below
        Application will be processed in 15days time

        Documents Required
        Covering Letter
        Form A
        Certificate of Incorporation (if it is a limited company)
        MoA & AoA (if it is a limited company)
        Address Proof of company
        PAN card of the company
        ID & Address Proof of Directors
        Authorization letter
        Child Labour Declaration
        Amount paid challan

        Registration fee list
        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/-
        501 to 1000 Employees 45000/-
        Above 1000 Employees 50000/-

  20. prakkash

    I am planning to start a laundry shop and added to this i will also have xerox business do i need to register and if I need to register what is the procedure to follow

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