The Shop and Establishment Act:
The Shops and Establishment Act legally allows individuals or entrepreneurs to run a shop or an establishment in a State under certain terms and conditions stipulated in the Act. This Act regulates the working hours, payment of staffs and working conditions of the workers and employees.
The Shop and Establishment Act in India is promoted by the state and slightly differs from state to state. However, as per the Act, all shops and commercial establishments operating within each state are covered by the respective Shop & Establishments Act.
The Shops and Establishment Act defines ‘Establishment’ as a shop or a commercial establishment which include commercial spaces, residential hotels, restaurants, theatres or other places of public amusement or entertainment. Furthermore, the state government also declares establishments for the purpose of this Act, through notifications in the Official Gazette.
A ‘Shop’ on the other hand is defined as any premises where goods are sold, either by retail, wholesale, or where services are rendered to customers. This could include an office a store-room, godown, warehouse or workplace, used in connection with such trade/ business.
In Karnataka, children under 14 years of age are prohibited to work in any establishment. No women shall be allowed or required to work in any establishment after 8 PM. However, Information Technology/ Business Technology organisation can get permission to work after 8 PM.
Any individual who commences operation in his shop or commercial establishment has to first must apply to the Chief Inspector for a Shop and Establishment Act License within the prescribed time. That establishment shall be registered within a period of one month from the date of commencement of such shop or an establishment. It is mandatory for all the shops and establishment to be licensed as per this act except for those establishments that are licensed under the Factories Act.
Features of the Karnataka Shop and Commercial Establishment Act:
· Issuing Registration Certificate
· Renewal of Registration Certificate
· Facilitating changes in Registration Certificate
· Issuing Duplicate Registration Certificate
· Annual Returns Filing
· Exemption or relief weekly holidays
· Exemption for Women working in Night Shifts
· Appeal submission
Documents and Information required:
· Identity / Address Proof of the owner including photo, mobile no. and an email id (Aadhar card/ Driving license/Voter Card/PAN etc.)
· The full address of the shop/establishment
· The full address of the head office (if any)
· Details of the head of a unit/ authorised signatory/manager (name, residential address, designation mobile no. and email id)
· Name, relationship and gender of the responsible family member/employee (if any)
· Business Details: -
a. PF code (if any)
b. ESI code (if any)
c. TAN No. (if any)
d. Total no. of male employees (mandatory for a company if hiring employees)
e. Total no. of female employees (mandatory for a company if hiring employees)
f. Employees in total (mandatory for a company if hiring employees)
g. Declared weekly holidays for employees
· Incorporation Certificate, Memorandum of Article and Articles of Association (In Case of Private Ltd. Company)
· The authorisation letter for Authorised signatory / self-attestation Letter for Owner
Challan /Payment Receipt /Transaction Receipt
· Duly filled Registration Form signed by the owner or an Authorised signatory.
Procedure for registering under the Shop and Establishment Act, Karnataka:
Registration under this Act can be done online and offline both. For registration and renewal of establishment under the Karnataka Shop and Commercial Establishment Act, 1961 entrepreneurs can avail the e-Karmika online facility or visit https://labouronline.kar.nic.in/
· In case of a new registration, the organisation should be registered within 30 days from the date of commencement of business.
· In case of an existing organisation, you should register the organisation from the date on which this Act comes into force.
· The registration certificate is valid for five years and it should be renewed before the expiry date by paying fees and in the manner prescribed.
· The business owner should display the registration certificate in such a place where everyone can see it inside the office premises.
· If the business owner plan to change any information, such change should be notified in the prescribed format to the registration authority.
· After closing the business establishment, the owner of that business should handover the registration certificate back to the authority.
Applicants would be also required to upload Address proof on the owner (Aadhaar Card/ Voter ID/ Driving License), Incorporation Certificate/MoA (In case of Private Limited Company), Self-attested letter from the Owner or an Authorisation letter from the Authority, Payment Receipt or Challan and Registration form signed by the owner.
Fees charged for registration:
An individual registering needs to pay the registration fees according to the number of employees engaged in the organization, which are-
· 1 to 9 Employees - 600/-
· 10 to 19 Employees - 4000/-
· 20 to 49 Employees - 10000/-
· 50 to 99 Employees- 20000/-
· 100 to 250 Employees - 40000/-
· 251 to 500 Employees - 50000/-
· 501 to 1000 Employees - 70000/-
· Above 1000 Employees - 75000/-
Renewing the registration:
The validity of the license is 5 years. The applicant will have to repeat the above process before 30 days from the date of expiration of the certificate.
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