A Comprehensive Guide : Karnataka Shops and Establishment Act
Act that deals with the local shops and establishments that are operating within the jurisdiction of Karnataka. This act was implemented in the year 1961 for the unorganized sector of Karnataka. Its aim is to regulate all the Karnataka Shops and Establishment operators and make sure they are following the necessary rules and regulations. This helps authorities create a legal framework that ensures that all the establishments are recorded and are under the supervision of the government of Karnataka.
It also makes the appointment of a labor inspector necessary in order to supervise all such establishments in the state of Karnataka. The Karnataka Shops and Establishment Act also made provisions regarding working hours, leave policy, cleanliness, wages, intervals for rest and meals, and more. These aspects help in organizing the unorganized sector of Karnataka and also help in falling this type of sector within the purview of the court. On 1st October 1964, the Karnataka Shops and Establishment Act came into force by state government notification.
Karnataka Shops and Establishment Act Rule
Some essential rules of the Karnataka Shops and Establishment Act are mentioned below:
Restrictions on Child Labour: The Act has made special provisions for the Employment of Women, Children, and Young Individuals. The Act has imposed strict restrictions on the Child labor and any shop and establishment found guilty has to face penalties or even punishment for this child labor offence.
Employment of Women and Young Individuals: The Karnataka Shop and Establishment Act focuses on the employment of women and young individuals and has imposed restrictions on night shifts in these establishments. At night the women and young individuals cannot work in any kind of shop and establishment as employees.
Working Hours: The Karnataka Shop and Establishment Act has kept the working hours duration of 9 hours in a day and 48 hours in a week. In case the employees are working these prescribed hours then the establishment has to pay them for overtime. Additionally, a fixed working period for employees should be maintained in Establishments. The act also deals with establishment operating hours and hence they can not operate before and after the following hours:
Before 6 am and after 9 pm in Bangalore.
Before 8 am and after 8 pm in other areas.
Exemptions of Work: As per the Act, no women are allowed to work after 8 p.m. in an organization or establishment whether as an employee or otherwise. Organizations such as BT or IT have to get permission in such cases by providing details of these women in Form R, only then they can work after 8 p.m.
Read More: How to Get a Business Loan in Karnataka?
- Employees have the right to take one day as a weekly holiday.
- Employees have the right to keep 40 days of earned leave.
- For additional working hours, the employee has the right to get wages twice the normal wage rate.
- Employees have the right to appeal to jurisdiction in case the employers dismiss the employees without any reasonable cause.
- Employees who face removal without any reasonable cause, have the right to receive compensation for one month’s pay for services every year.
Weekly Holidays: It’s important for Establishments in Karnataka to remain closed for one day a week. But there are some organizations that can stay open throughout the entire week, These are:
- Organizations dealing with medicines and selling medical equipment.
- College or school-attached hotels.
- Residential schools, clubs, hotels, and lodging.
- Stalls and refreshment rooms.
- Shops at railway stations and bus stands.
- Places dealing in daily newspapers and weekly magazines.
- Shops dealing with necessities.
- Public recreation centers
- Infection research establishments.
Wage Rates: The wage rates of employees are regulated and determined by the Karnataka State Government. The authorities also undergo revision of the wages of employees periodically.
Registration Certificate: The Karnataka Shop and Establishments must display their registration certificate on the business premises in visible areas. Additionally, in case of the closure of such establishments, the dealers need to surrender their registration certificates to the relevant authority.
All eligible establishments that are operating in the Karnataka area need to get registered within 30 days, as the Karnataka Shops and Establishment Act has made it mandatory. StartUpYo is offering a simple and effective Karnataka Shop and Establishment Registration plan. Our experts will help in making you understand the whole Karnataka Shop and Establishment Registration and will provide you with all the necessary support during the whole registration process. Our registration process is digital hence you can start your resignation from anywhere.
Our professionals will provide step-by-step guidance and will submit your application in the prescribed format. Our experts will check your documents for authentication and will submit your application after paying the required fee. Once your Karnataka Shop and Establishment Application is submitted, our team will start providing you updates regarding the application status. As the authorities will approve your Karnataka Shop and Establishment application, our team will deliver your registration certificate to your desired site.
Documents required for Shop and Establishment Registration
Below are the documents that are necessary in order to make the Karnataka Shops and Establishment Registration successful. The different business categories and the list of the documents that are required to obtain the Karnataka Shops and Establishment Licence.
For the registration of Sole proprietorship in Karnataka, one must be ready with documents such as:
- Valid PAN card of the business owner.
- Valid Address Proof of the business owner.
- Rental agreement of the business premises.
- Passport-size photographs of the business owner.
Karnataka Shop and Establishment Registration fee
|Number of Employees
|1 – 19
|600 ₹ – 4000 ₹
|20 – 99
|10000 ₹ – 20000 ₹
|100 – 500
|40000 ₹ – 50000 ₹
|501 – 1000
For the registration of a Partnership firm in Karnataka, one must be ready with the following documents:
- Valid PAN card of the firm.
- Address proof of the partners.
- Valid Identity proof of business partners..
- Rental agreement of the firm.
- Passport-size photographs of every business partner that is running the partnership firm.
- Partnership deed.
For the registration of a Private limited company in Karnataka, one must be ready with the following documents:
- Valid PAN card.
- Certificate of incorporation.
- Valid Address Proof.
- Valid identity proof.
- MOA and AOA.
- Rental agreement of business establishment.
- Passport-size photographs of business directors.
The Karnataka Shops and Establishments Act was introduced with an aim to regulate the working conditions inside the Karnataka Shops and Commercial Establishments. These establishments must be registered to acquire licenses and to operate legally. For a streamlined registration process, one can follow the information provided in the article. Only registered Karnataka Shops and Commercial Establishments can avail of different benefits from the Karnataka Shops and Establishments Act.
What is the validity of a Karnataka Shops and Establishment Registration certificate?
The validity period of a Karnataka Shops and Establishment Registration certificate is 5 years and it must be renewed before its expiry date.
What kind of establishment in Karnataka can avail loans?
Only registered business entities in Karnataka can avail of loans without much hassle from different financial institutions or banks.
What is the importance of establishing registration certificates in Karnataka?
Registration certificates of establishment in Karnataka serve as evidence before the Municipality inspector or officer from the Labour Department of the State Government.
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