SHOPS & ESTABLISHMENT ACT

1. New shops or commercial establishments, within 30 days from starting the business shall submit the application form in form ‘A’ to register the establishment.
2. Registration certificate is valid for 5 years. Before the expiry of the period, a renewal application is to be submitted for the next period.
3. You must display registration certificates in a visible place inside the office premises.
4. It shall be the duty of an employer to notify the registration authority, in the prescribed form, of any change regarding any information in his/her statement during registration/renewal within 15 days after the change. Ex. Change in address, change in ownership, change in a number of employees, etc.
5. After closing the business of the establishment, the owner should surrender the registration certificate to the registration authority.

 Submit the physical “acknowledgment copy of online application” to your respective circle officer with payment challan, and documents and get the certificate.

The application needs to be applied online through the e-Karmika portal which is the state government’s official website and provides facilities for registration, renewal, etc. under the Act. The application has to be made in Form A along with the 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 fee in this case that changes from time to time. If it satisfied the officer in question with your application, your registration certificate under the Act is issued.

Get a detailed process of applying to the Karnataka Shops & Commercial Establishment Act.

1. Offices of or under the Central or State Governments or Local Authorities, except commercial undertakings.
2. Any railway service, water transport service, postal, telegraph, or telephone service, any system of public conservancy or sanitation, or any industry, business, or undertaking which supplies power, light, or water to the public.
3. Railway dining cars.
4. Establishments for the treatment or care of the sick, infirm, or mentally unfit.
5. Establishments of the Food Corporate of India.
6. Offices of legal practitioners and medical practitioners in which not over three persons are employed.
7. Offices for a banking company.
8. Any person employed in any business from points 1–7 above.
9. Persons occupying positions of management in any establishment.
10. Persons whose work is inherently intermittent such as drivers, care-takers, watch and ward staff, or canvassers.
11. Persons directly engaged in preparatory or complementary work, such as clearing and forwarding clerks responsible for the dispatch of goods.

The registration fees for Shops & establishments in Bangalore vary on various factors like nature, location, and size of your business. The fees are determined by the local municipal corporation & are subject to change from time to time. Generally, the fees range from a few thousand to a few lakhs based on the size of the business. There are 3 types of fees that come under this act namely 

1. Registration Fees
2. Amendment Fees
3. Penalty Fees 

Registration Fees – It is paid during the registration of your business under the Shop & Establishment Act in Bangalore. 
Amendment Fees – This fee is required to be paid while making any changes to your business structure or nature. 
Penalty Fees – This fee includes any penalties such as late registration or any other. 

Government Registration Fee

No. of      Employees            Fees (Rs.)

- 0 No      Employees                 405/

- 1 to 9     Employees                  810/

- 10 to 19 Employees                5,400/

- 20 to 49 Employees             13,500/

- 50 to 99 Employees              27,000/

- 100 to 250 Employees         54,000/

- 251 to 500 Employees          67,500/

 - 501 to 1000 Employees      94,500/

-  Above 1000 Employees     1,01,250/- 

Inspection Complications:

Labour inspections can be rigorous. If your workplace doesn’t meet the compliance standards, it can lead to delays and, in severe cases, license suspension.

Solution: Regularly audit your workplace to align with the legal requirements. Fix any issues promptly. Being proactive can prevent complications during inspections.

Lack of Awareness:

Many business owners are unaware of the updated regulations and renewal procedures, leading to mistakes and delays.

Solution: Stay informed about the latest laws and renewal guidelines. Regularly visit the official government portal for any updates. Consider KLP consulting legal experts or agencies well-versed in license renewal processes.

Time Constraints:

Business owners often find it challenging to manage their regular operations while simultaneously handling the renewal process, leading to delays.

Solution: Plan ahead. Start the renewal process well before the license expiration date. Allocate specific personnel to handle the renewal to ensure a smooth process without disrupting daily operations.

Communication Issues:

Miscommunication with the labour department officials or lack of clarity on the renewal status can cause unnecessary delays.

Solution: Maintain clear communication channels with the concerned department. Keep all communication documented. Follow up regularly to stay updated on the application status.

Normally Labour visits to Shop & Establishment  and check the records & review / After checking the Records prepared by Team Members / Later Inspector provides us Notes of Inspection to provide documents as per the Act & Ask to meet Respective Labour Inspector at there Office / Bangalore - 2 locations & Every Dist. Office Labour Officer for Next Process.... 

We can help you to prepare the Necessary documentation for Notices Closure at one Step for all  your Labour Inspector / Officer / Commissioner with proper documentation. 

NOTES OF INSPECTION | Labour Inspector Documents Verified

 THE KARNATAKA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT, 1961 

- Registration Certificate (Karnataka Shops & Establishments Act)

- Appointment Letters of Employees (Form Q)

- Muster Roll / Attendance Register / Wages Register (Form T)

- Leave with Wages Register (Form F & H)

- Equal Remuneration (Form-D)

- Working Hours & Overtime Register (Register OT) 

- Gratuity/Bonus Records

- Display of Notices as per S&E Act law

- From U - Annual Returns

 - No Child Labour Act

After Notes of Inspection after 10-15 days Next Level Show cause in writing within [7/15] days from the date of receipt of this notice as to why action should not be initiated against you under the provisions of the applicable Acts and Rules.
 

1. Submit a compliance report detailing the steps taken to rectify the above violations.
2. Furnish supporting documents/records for verification.
    

Failure to submit a satisfactory reply within the stipulated time will compel this department to initiate Legal Action including but not limited to prosecution, penalties, or cancellation of registration / license, as applicable under the law. 

 Final Show Cause Notice template issued by the Labour Department, commonly used when an employer fails to respond to an initial show cause notice or fails to rectify labour law violations. This version is formal, legally sound, and aligned with practices followed in Karnataka and other Indian states. 

If no response or corrective action is received within the above period, the department will initiate penal action under the following provisions:

• Prosecution under relevant sections of the [Insert Relevant Acts]
• Imposition of fines and/or imprisonment as per law.
• Cancellation/suspension of labour registration or license.
• Reporting to other statutory authorities (EPFO, ESI, PT, etc.)