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Karnataka Shops and Establishment Registration
Secure Your Karnataka Shop Registration in Just 3 Simple Steps
The Karnataka Shops and Establishments Act regulates the operations of shops and commercial establishments. The Karnataka Shops and Establishments Act was introduced to regulate the hours of work, annual leave with wages, wages and compensation, employment of women and children and other aspects of shops or commercial establishments.
The Karnataka Shops and Commercial Establishments Act extends to the whole State of Karnataka. Registration is mandatory for all shops and commercial establishments including offices, storerooms, godowns or warehouses located in Karnataka, except those exempted. This Act is applicable regardless of whether you have one employee or none.
The Karnataka Shop and Establishment Act defines a shop as:
“A “shop” means any premises where any trade or business is carried on or where services are rendered to customers, and includes offices, storerooms, godowns, or warehouses, whether in the same premises or otherwise, used in connection with such trade or business, but does not include a commercial establishment or a shop attached to a factory where the persons employed in the shop fall within the scope of the Factories Act, 1948.”
The Karnataka Shops and Establishments Act defines a commercial establishment as:
“The “commercial establishment” means a commercial or trading or banking or insurance establishment, an establishment or administrative service in which persons employed are mainly engaged in office work, a hotel, restaurant, boarding or eating house, a cafe or any other refreshment house, a theater or any other place of public amusement or entertainment and includes such establishments as the State Government may by notification declare to be a commercial establishment for the purposes of this Act.”
The following are some major aspects of the Karnataka Shops and Establishments Act:
Employment of Child, Young Persons and Women - The Karnataka Shops and Establishment Act prohibits the employment of a child at any establishment. A child is any person who has not completed fourteen years of age. In addition, young women and men cannot be forced or allowed to work during the night, whether as employees or otherwise. A young person is anyone who has completed the age of fourteen, but not eighteen.
Hours of Work - As per the Karnataka Shops and Establishments Act, employees can only work for nine hours on any day and forty-eight hours in any week. If the employee works more hours, then compensation needs to be provided for overtime. Further, the period of work of an employee in an establishment should be fixed so that no period of work exceeds five hours without an interval.
Weekly Holiday - All establishments in Karnataka are required to remain closed for one day of the week and every employee in an establishment must be given at least one whole day in a week as a holiday for rest. However, if the establishment has additional staff, it can remain open throughout the week.
Annual Leave with Wages - Employees working in an establishment in Karnataka have a permit to avail a leave with wages at the rate of one day for every twenty days of work done young employees should be granted a leave with pay at the rate of one day for every fifteen days they have worked.
We at Arpitha & Associates can assist you to get the Shops & Establishment License in the earliest time possible and with proper documentation.
