The term shop and establishment suggests – or rather includes – all entities that want to operate as a shop in a particular state of India. If you’re doing business in Karnataka and want to work in such a capacity in India; this is something necessary that you must understand. For most businesses in Karnataka; it is mandatory to be registered under this particular Act. This can be called the first step that you would take towards the business world that offers you such immense promise.
Normally, each state has its own shop and establishment-related rules and regulations. This also means that the rules of such an act would be different from one state to another.
So before going to acquire shop and establishment license certificate in Bangalore; you need to know and understand the overall process about it; because you’re a businessman and doing business in this place to uplift your business.
However, shops and establishment registration is compulsory for all companies, businesses, legal entities and proprietors those who are doing commerce in the state or who’ve already been setup their establishments, but has not registered yet. Please take the certificate and be free from the penalty.
The Karnataka Shops & Commercial Establishments Act 1962 deals with shops and commercial establishments in the state. It primarily regulates their operation. The Act was introduced with the aim of regulate the conditions of work of people employed in these establishments. This includes the following factors:
Thus, as you can see, the Act covers almost all the aspects of the work that done by these establishments.
As Karnataka Shops & Commercial Establishments Act 1962 provides a clear definition for the terms establishment, shop, and commercial establishment and it states, these types of entities have to acquire the registration certificate.
The term “Establishment” means any shop or commercial establishment.
The term “Commercial Establishment” means a commercial or trading entity. It could be an insurance or banking establishment. It could also be an establishment that provides administrative services where people are doing office work.
This includes the following establishments:
Basically, it would include any establishment that the Karnataka government denotes as a commercial establishment.
As per the Act the term “Shop” means any premises where business or trade is being done. It could also be one where services are provided to customers. This includes the likes of the following:
It does not matter where they are located. They could be located in the same premises or elsewhere in state. As long as any trade or business is being done over there it would come under the ambit of the Act.
There are certain establishments that are however exempted from registration under the Act. Examples of such establishments would be offices owned and undertaken by governmental authorities with the exception of commercial undertakings. This includes central, state, and local governmental entities.
You need to provide the following details at the time of applying for registration under the Karnataka Shops & Commercial Establishments Act 1962:
You also need to provide some information in this regard:
Normally the labour department of the state government governs the Act. This means that you have to apply for shop registration of your business with the respective local labour officer in your district. Suppose your business place is Bangalore, then you’ve to apply in Bangalore labour department.
If your business is eligible to register under the Act you would have to apply for registration within a span of 30 days of starting your business.
Here’s some steps are involved in this process:
The application need to be applied online through e-Karmika portal which is the state government’s official website, provides facilities for registration, renewal and etc. under the Act.
The application has to be made in Form A along with necessary documents. This is from the date when your establishment started functioning. There is a prescribed form for this purpose. You also have to pay a certain fees in this case that tends to change from time to time.
If the officer in question is satisfied with your application your registration certificate under the Act would be issued.
The following table represents the present government fees charged for registering a business under the Karnataka Shops and Establishment Act:
|Number of employees||Fees in INR|
|more than 1000||50,000|
The registration certificate is valid for a period of 5 years. And the license has to be renewed before its expiry.