The Karnataka Shops and Commercial Establishments Act 1961 was introduced to regulate the working conditions of employees in commercial undertakings, shops, etc. These include regulating annual leaves with wages, working hours, employees' compensation and wages, women's employment and other aspects related to commercial establishments or shops in Karnataka. The registration of a company under this Act implies that the company is licensed to operate within the regional jurisdiction under the Labour Department.
This piece discusses the details of the registration of shops and establishments in Karnataka. So, keep reading to learn more about it.
Every commercial establishment and shop that operates a company, trade or service within the notified areas of Karnataka qualify to register under Karnataka Shops and Commercial Establishments Act 1961. Each business unit, including restaurants, theatres, shopping centres, stores, public entertainment hotels, retail stores, etc., should register under this Act within 30 days of commencement of business operation.
Follow this step-wise guide to register shops and commercial establishments in Karnataka without any hassle:
Step 1: Visit the official portal of e-Karmika. Select' New Registrations'.
Step 2: Provide the required details in the registration form and submit it. The applicant will receive a username and password on his or her registered email ID and contact number.
Step 3: Log in to this portal again with the credentials and fill in the application form.
Step 4: Ask for a challan from any specified bank based on employee counts. Attach all the necessary documents like a copy of the Aadhaar card, Memorandum of Article, etc. After submitting documents along with the challan, the applicant will receive a receipt number.
Step 5: Submit the application form in physical format to the relevant authority of the regional circle.
After a Senior Labour Inspector verifies the submitted application, it will issue a registration certificate.
Eligible candidates under each establishment category must submit the following documents while registering under Karnataka Shops and Establishments Act:
|
Type of Establishment |
Documents Required |
|
Sole proprietorship |
PAN card, address proof, rental agreement, and passport size photographs. |
|
Partnership firm |
PAN card, address and identity proof, rental agreement, passport size photographs of every business partner, partnership deed. |
|
Private limited company |
PAN card, incorporation certificate, address and identity proof, MOA, rental agreement, AOA and passport size photographs of directors. |
Applicants need to pay the following fees for registration of their shops and commercial establishments in Karnataka:
|
Number of Employees |
Fees |
|
No employees |
₹ 300 |
|
1 to 9 |
₹ 600 |
|
10 to 19 |
₹ 4,000 |
|
20 to 49 |
₹ 10,000 |
|
50 to 99 |
₹ 20,000 |
|
100 to 250 |
₹ 40,000 |
|
251 to 500 |
₹ 50,000 |
|
501 to 1000 |
₹ 70,000 |
|
More than 1000 |
₹ 75,000 |
Mentioned below are a few simple steps following which an applicant can check the application status of registration for shops and commercial establishments in Karnataka:
Step 1: Go to the official portal of e-Karmika. Select 'Know Your Application Status'.
Step 2: Provide the acknowledgement number and click on 'Search' to check the application status and other essential details.
The validity of a registration certificate is 5 years in Karnataka. The holder of this certificate must renew it before one month of its expiry.
Here are some of the essential provisions of the Karnataka Shops and Commercial Establishments Act:
The Act bans child employment in any establishment. The child refers to an individual who has not reached 14 years of age.
Besides, women and young individuals cannot work during the night at any establishment as employees or otherwise. Here, young individuals are those who have completed 14 years but not 18 years.
The working hours of employees are 9 hours a day and 48 hours a week. If employees work beyond prescribed hours, the employer must pay them for overtime. Moreover, the working periods of employees must be fixed so that the working period does not go beyond 5 hours without an interval.
Besides, establishments will not operate before and after the following hours:
No women, whether as an employee or otherwise, are allowed to work after 8 pm in an organisation. BT or IT organisations can acquire permission for women to work after 8 pm by providing details in Form R.
Every establishment in Karnataka must remain closed for one day a week. However, if there are adequate additional employees in the establishment, it can stay open throughout the entire week.
Organisations exempted weekly holidays are as follows:
Employees can opt for leave with a wage of one day for every 20 days of completing work. Young workers can also opt for leave with a wage of one day for every 15 days of completing work.
Employers must submit annual reports ending on 31st December before 31st January of the subsequent year using format U.
The Karnataka State Government determines the wage rate of labourers employed in shops and establishments and undergoes revision periodically.
Dealers must display their registration certificate inside visible areas of office premises. Additionally, if dealers close their establishment, they should surrender their registration certificates to the relevant authority.
A shop and commercial establishment's owner can avail the following benefits after registering under the Karnataka Shops and Commercial Establishments Act:
Keep all these details about the process of registration of shops and establishments in Karnataka in mind. This is because knowing the information will streamline the registration and other processes.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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