Registration under Karnataka Shops and Commercial Establishments Act, 1961

The Karnataka Shops and Commercial Establishments Act, 1961 regulates working conditions and employment terms in shops and commercial establishments operating within Karnataka.

1. Who is required to register under the Act?

Any shop or commercial establishment involved in trade, business, or services within the notified areas of Karnataka must mandatorily register under the Act within 30 days of commencing business.

2. How long does it take to obtain the registration certificate?

The registration certificate is generally issued within 15 days from the date of application submission.

3. What documents are required for registration?

4. What are the applicable government fees?

5. How are “shop” and “commercial establishment” defined?

• Shop: Includes offices, storerooms, godowns, warehouses, etc., related to business activities, excluding factories or factory-attached shops.
• Commercial Establishment: Includes trading, banking, insurance, administrative offices, hotels, restaurants, cafés, refreshment houses, theatres, and places of public entertainment or amusement.

6. What is the validity period of the registration?

The registration certificate is valid for 5 years and must be renewed thereafter. Any changes such as address, number of employees, etc., must be notified to the authorities within 15 days.

7. Are there any exemptions under this Act?

Yes. The following are exempted:

• Government Offices
• Offices of legal or medical practitioners employing not more than 3 persons
• Establishments offering care or treatment to the handicapped or mentally challenged

8. What key regulations are covered under this Act?

The Act primarily regulates:

• Working hours and weekly holidays
• Maintenance of attendance records
• Issuance of appointment letters
• Leave entitlements and employee termination provisions

9. What are some notable regulations employers should be aware of?

• Monthly salary must be paid by the 7th of the following month
• Max working hours: 48 hours/week (58 including overtime)
• Leave entitlement:
  • 1 earned leave for every 20 days worked
  • 1 sick leave for every 30 days worked
  • Earned leave can be accumulated up to 40 days
• Employees completing 180 days of service cannot be terminated without prior notice
• Employment of children below 14 years is prohibited
• Women and young persons are not permitted to work between 8 PM to 6 AM
• Name boards must be in Kannada; other languages can appear below

10. What records must be maintained by shops and establishments?

11. Is registration required for each branch or location?

Yes. Each branch or location must be registered independently.

12. Compliance Ready Reckoner under Karnataka Shops Act