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

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 form 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 shop or establishment can take these 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 full 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

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/ managing partner/ director’s photo
  • Authorisation letter for authorised signatory/self attestation letter for owner
  • Address proof for the establishment/ shop (rental/ lease agreement etc.)
  • Challan/payment receipt/transaction receipt
  • Identity proof of the owner/ authorised signatory (PAN card/ driving license/ voter card, etc)
  • Duly filled registration form signed by owner/authorised signatory
  • Statutory documents (partnership deed/ BBMP trade license/ incorporation certificate/ memorandum of article)

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 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 the application online
  5. Take challan from any bank based on number of employees
  6. Make attachment of necessary documents along with Bank challan
  7. Submit the physical copy of online application form in particular regional circle

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


1 to 9 Employees


10 to 19 Employees


20 to 49 Employees


50 to 99 Employees


100 to 250 Employees


251 to 500 Employees


501 to 1000 Employees


1000 Above Employees



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 Renewals, Amendments, Closure and Annual Retruns.

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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