How can I Apply for Shop & Establishment Registration in Karnataka?

Posted on: 2017-09-01 23:55:07

No matter what kind of shop or establishment you are opening in Karnataka; you would have to apply for registration with Department of Labour, Karnataka. These days the Karnataka government has made it easy for you to perform these procedures online by starting the e-Karmika portal. This is the online facility where you can register, as well as renew your establishments.

All this is done under the aegis of Karnataka Shops and Commercial Establishments Act, 1961. This particular act just happens to be one of the many State Labour Laws and Rules that the Department of Labour is implementing.

Rules and laws to shops and establishments

The department performs a whole range of functions and this includes enforcing a number of laws in the state. As per these laws, the citizens need to interact with the department. All this is part of various enactments of the Indian government as well as the Karnataka government. Karnataka Shops and Commercial Establishments Act, 1961 covers a number of areas where the department is supposed to work. They may be mentioned as below:

  • Issuance of registration certificate
  • Filing of annual returns
  • Renewal of registration certificate
  • Exemption on weekly holidays for shops and establishments
  • Amendment in registration certificate
  • Exemption for women working in night shift
  • Issuance of duplicate registration certificate
  • Submission of appeals    

What is shop & establishment registration?

Shop and establishment registration means your business is registered under the constituted Law of State labour department through the Senior Labour Inspector in the jurisdiction of your regional circle and your organization will be officially registered in Government record and secured a place for major alteration. But the Department has the authority to monitor the workers working hour’s time, weekly holidays, leave structure for employee and etc. as it is mentioned according to the rule. This is why; you are moving forward one step, towards achieving your business goal.

Who needs to obtain the certificate under the Karnataka Shops and Establishment Act, 1961?

The thing is that any people who are doing their business either as a shop or an establishment, they must have to get the registration from the specific authority of regional labour offices of Karnataka to make secure of his/her organization.

Shop/ Trade license is subjected to state department. And this license is mandatory for all business entities.

So every shop/ establishment needs to register itself with their state labour department within 30 days of commencement.

Here's the following business organizations are required to obtain their shops and establishment’s licenses are

  • Shops
  • Commercial establishments
  • Restaurants
  • Hotels
  • Theaters
  • Public amusement
  • Retail trade

How to determine what is Shops and Commercial Establishment?

Shop: A shop refers to your business or trade which is physically situated on a place where it is providing the services/goods to whom, whether it may sells their goods or services as retailer or wholesaler where services are rendered to customers. It includes all your offices, storerooms, godowns and etc. are in the same building for business purpose but it doesn’t include under the commercial establishment.

Establishment: A commercial establishment is refers to an economic unit or banking sector or an insurance organization engaged in commerce to produces or sells their goods/services from a single location.

A commercial establishment is an establishment refers by the state shop & establishment act to hold on the activities on commercial purpose; which is used to produces or sells their goods/services from a specific location. And such type of activities comes under the establishments such as hotels, restaurants, coffee bar, theater, banking sectors, financial institutions, a cafe are comes under the State Governments Shop and Establishment Act.

Benefits of Shop and Establishment License

The owner of the shops or establishments can get these below advantages by registering his/her own business entity under the Karnataka Shops and Establishments Rules, 1963.

1. The shop and establishment license along with Chartered Accountant (CA) Certificate helps to open a Current Bank Account for your business.

2. It helps to get loans easily from Banks or Financial Institutions to expand and grow your business.

3. It helps to get the facilities to enjoy the Tax Benefits, Power Tariff and exemption from State Govt.

4. It helps to show your shop registration proof when any inspector from State Govt. Labour Department or Municipality visiting to your office premise.

5. One another facility is that the registration of shop and establishment and obtaining license/ certificate is fully online. You can apply it through the below process with proper documentations, no need to visit again and again to regional jurisdiction.

Documents to be uploaded during the shops and establishments registration

As you would know as a prospective business owner, certain documents always have to be provided at various stages of your existence to relevant authorities. Here too scanned copies of certain documents need to be uploaded at the time of making the application for opening a shop or any other establishment in Karnataka. Those documents may be mentioned as below:

  • Proprietor/ Designated or Managing Partner/ Director’s photo
  • Identity proof of the owner/ authorized signatory (PAN Card/ AADHAAR Card/ Driving License/ Voter ID)
  • Address proof of shop/ establishment with rental or lease agreement
  • Authorization letter from authorized signatory/ self attestation letter of owner
  • Duly filled Registration Form signed by owner/ authorized signatory
  • Challan/ Payment Receipt/ Transaction Receipt
  • Statutory documents (BBMP Trade License/ Partnership Deed/ Incorporation Certificate [COI]/ Memorandum of Business [MOA & AOA])

Procedure for Karnataka Shops & Establishment Registration

As per the state rule, every state follows their specific registration process. So, here you can get a brief idea on online application of shops and commercial establishments in Bangalore Karnataka. And for this, you have to follow the steps to acquire the license/ certificate in Bengaluru or anywhere in Karnataka.

  1. Go to this site https://labouronline.kar.nic.in/ to E-Labour Depratment for online registration/ renewal of shops & establishments license. Here you just move your mouse to APPLY ONLINE menu and click on Shops and Commercial Establishments Act. It will drive you to Government of Karnataka, Department of Labour where you would register your business.
  2. Then click on New Registrations and fill the form online, submit it.
  3. User id and password will be generated
  4. Fill and submit the application form online to Chief Inspector of your concerned regional circle office
  5. Take challan from any nationalized bank based on your number of employees
  6. Make attachment of necessary documents along with the Bank challan
  7. Submit the physical copy of online application form in the particular regional circle
  8. After verification by the Senior Labour Inspector, if everything is well; you shall be granted the registration certificate

Here, look at the list of attachments for specific organization related to shop & establishment

Attachment Required for Private Limited / One Person Company

  • COI (Company Incorporation Certificate)
  • MOA and AOA
  • PAN of the Company
  • PAN of the Directors
  • Passport size photo of directors
  • Address proof of the Directors
  • Authorization Letter
  • Rental Agreement/Sale Deed/Lease Deed
  • Electricity bill for office address proof
  • Rental Agreement/Sale Deed/Lease Deed for additional place of business
  • NOC (No Objection Certificate)

Attachment Required for Limited Liability Partnership (LLP)

  • COI
  • LLP Agreement
  • PAN of the Company
  • PAN of the Directors
  • Passport size photo of directors
  • Address proof of the Directors
  • Authorization Letter
  • Rental Agreement/Sale Deed/Lease Deed
  • Electricity bill for office address proof
  • Rental Agreement/Sale Deed/Lease Deed for additional place of business
  • NOC

Attachments Required for Proprietorship

  • PAN of the proprietor
  • Address proof of the proprietor
  • Passport size photo of proprietor
  • Authorization Letter
  • Rental Agreement/Sale Deed/Lease Deed
  • Electricity bill for office address proof
  • Rental Agreement/Sale Deed/Lease Deed for additional place of business
  • NOC

Attachment Required for Partnership

  • Certificate of firm
  • Partnership deed
  • PAN of the Firm
  • PAN of the partners
  • Passport size photo of Partners
  • Address proof of the Partners
  • Authorization Letter
  • Rental Agreement/Sale Deed/Lease Deed
  • Electricity bill for office address proof
  • Rental Agreement/Sale Deed/Lease Deed for additional place of business
  • NOC

Registration Fee Structure for Shop and Establishment in Karnataka

If your company does not have any employee other than yourself you would need to pay a registration fee of INR 250. In case there are between one and nine employees in your establishment you would need to part with INR 500. In case the number is between 10 and 19 you would have to pay INR 3000 as registration fee.

In case you have hired anywhere between 20 and 49 employees you would have to pay INR 8000. The amount would go up to INR 15,000 in case there are 50 to 99 employees in your shop or establishment. If you have 100 to 250 employees you should be paying a registration fee of INR 30,000. If there are between 251 and 500 employees in your unit then the registration fee payable by you would increase to INR 35,000. If the number of employees in your company is between 501 and 1000 the registration fee applicable for you would be INR 45,000. If you have more than 1000 employees you should pay INR 50,000 as registration fee.

Here you can find the chart of registration fee as per the Department of Labour, Karnataka for the number of employees or workers in an organization.

Registration Fee

No. of Employees

Fees (Rs.)

No Employees

250/-

1 to 9 Employees

500/-

10 to 19 Employees

3000/-

20 to 49 Employees

8000/-

50 to 99 Employees

15000/-

100 to 250 Employees

30000/-

251 to 500 Employees

35000/-

501 to 1000 Employees

45000/-

1000 Above Employees

50000/-

 

How to Check Shop and Establishment Application Status?

To know the position of your application of shop & establishment online in Bangalore Karnataka; you need to follow the two simple tips.

Note: Before going to check the application status, keep the acknowledgement number with you.

1. Visit this web page http://164.100.133.176/ekarmika/UserCredentials/Status.aspx; this will be open like the below screenshot. See the specified image below:

2. Enter your application Acknowledgement Number in specified field and click on “Search” button. A new window will open and display your Acknowledgement Number, Shop or Establishment Name, Proprietor Name, Address and Remark/ Status as shown by the below screenshot. And you will able to know the status of your application.

How to Verify Shop and Establishment License?

Why a proprietor or business owner wants to know about his/ her license?

To check the certificate license is correct or not.

Because he/she should ensure that I registered my shop or establishment and got the real legal certificate for running the business.

To verify your shop or establishment certificate license online in Bangalore Karnataka; you’ve to browse the website of Department of Labour, Govt. of Karnataka and find in this way.

Here follow the 2 simple steps:

1. Go to this http://164.100.133.176/ekarmika/UserCredentials/Certificate%20View.aspx web page, you will get a new window as shown in below screenshot.

2. Enter the Registration No. in empty Certificate Number field and click on “View” button. This will display your Establishment or Shop Name, Acknowledgement and Certificate Number, View Certificate in a tabular format as shown in below screenshot.

And here you can download the certificate by clicking only on “View” link just down to view certificate and get the detail information of it and keep it for future legal purpose.

Required Renewals in Time

You need to renew your shop & establishment license in a 5 years term basis, i.e. renewal once a 5 year. The users who have already taken registration online, they can use the same Username and Password for Renewal, Amendments, Closure and Annual Returns.

If You are Making Any Changes in Office

Changes can be done as when you required to like change the office address, changes of director/proprietor/partner, addition place of business, etc.

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