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 and get the license for your respective business. As per the BBMP (Bruhat Bengaluru Mahanagara Palike) rules and regulations, you have to acquire this license certificate for running your business in a certain place of Bangalore, Karnataka. It is mandatory for every business.

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. And in different places of India, the people know this license as Gumasta license.

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, 1962 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 goals.

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 of his/her own business entity under the Karnataka Shops and Establishments Rules, 1963.

The shop and establishment license along with Chartered Accountant (CA) Certificate helps to open a Current Bank Account for your business.
It helps to get loans easily from Banks or Financial Institutions to expand and grow your business.
It helps to get the facilities to enjoy the Tax Benefits, Power Tariff and exemption from State Govt.
It helps to show your shop registration proof when any inspector from State Govt. Labour Department or Municipality visiting to your office premise.
One another important benefit is that the registration of shop and establishment for 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 for 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.

Go to this site https://labouronline.kar.nic.in/, 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.
Click on New Registrations and fill the form online, submit it.
Username and Password will be generated and send to your mobile number
Fill and submit the application form online to Chief Inspector of your concerned regional circle office
Take Challan from any nationalized bank based on your number of employees
Make attachment of necessary documents along with the Bank Challan
Get the acknowledgement number
Submit the physical copy of online application form in the particular regional circle
After verification by the Senior Labour Inspector, if everything is well; you shall be granted the registration certificate
Obtain the certificate

Here, look at the list of attachments required for specific organization for obtaining shop & establishment license:

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 Firm

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 Business

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 of 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 300. In case there are between one and nine employees in your establishment you would need to part with INR 600. In case the number is between 10 and 19 you would have to pay INR 4,000 as registration fee.

In case you have hired anywhere between 20 and 49 employees you would have to pay INR 10,000. The amount would go up to INR 20,000 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 40,000. If there are between 251 and 500 employees in your unit then the registration fee payable by you would increase to INR 50,000. If the number of employees in your company is between 501 and 1000 the registration fee applicable for you would be INR 70,000. If you have more than 1000 employees you should pay INR 75,000 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	300/-
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/-
1000 Above Employees	75000/-

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 first.

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 Certificate?

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've 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 Department of Labour, Govt. of Karnataka website and find in this way.

Here you've to follow the 2 simple steps:

1. Go to this http://164.100.133.176/ekarmika/UserCredentials/CertificateView.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. Remember before one month of your certificate expiration, you need to apply for renewal.

Note: The users who have already taken registration online, they can use the same Username and Password for Renewal, Amendments, Closure and Annual Returns.

While Making Any Changes in Office

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

If you're changing something in your busnines, you've to intimate the department and update your details with respect to the business; which help your customers know all about your business changes with regards to company and also avoid legal actions from the state authority.

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