Shop and Establishment registration denotes that your business has been granted a licence within the purview of your regional circle pursuant to the State Labour Department’s approved Law by the Senior Labour Inspector. As a result, your group will be registered in the government’s records and have its status protected. Shops include any offices, storerooms, or god owns used in conjunction with a certain business or trade, whether they are on the same premises or not. While the term ‘Business’ usually  refers to a hotel, restaurant, boarding or dining room, café or other refreshment room, commercial or trading, banking, or insurance establishment, as well as an organisation or administrative building where working people are largely involved in office work.

Which Establishments require the Shop and Establishment License?

• Shops: Usually Retail outlets and shops which procure products would require this form of license to operate. New shops also have to compulsorily secure this license.

• Eateries: Any small time eatery, road side eatery, a catering business and a hotel would require this license.

• Hotels: Any small hotel to large hotel would require this form of license to operate. The restaurants which are attached to the hotel would also require this license.

• Commercial Places: Any other business place would require this license based on the conditions imposed by the state. This will also include theatres, amusement parks, and workspace and service spaces.

Objectives of Shop and Establishment Registration

• To make certain that workers’ rights are safeguarded. This would entail making sure that the employees are fairly payed and treated in the workplace.
• To make sure the company conforms to the state-to-state registration requirement.
• To make sure that better job standards are produced on a regular basis.

Benefits of Shop and Establishment Registration

1. The right of doing business: Individuals will be granted the right to conduct business in their respective area or state if you can provide proof of their company’s legal entity (such as a partnership firm or a proprietorship firm).
2. Ease of opening a current business account: According to RBI regulations, each store and establishment must open a unique business account. This is done to ensure that it must reflect its daily business. To open such an account, the banks demand that you provide documentation of a legitimate organisation. The shops and establishment licence might make it easier for you to open this account.
3. Facilitates smooth inspections: The State Government and the local municipality often visit and inspect the businesses to see whether they are operating properly. One may pass such inspections easily and swiftly if you have the shops & premises licence in place.
4. Government benefits: All small enterprises in a State are governed by the State DIC Department. It occasionally introduces programmes to help small businesses, but only companies holding a shop or establishment licence are eligible to take advantage of these programmes. Therefore, if users don’t already have one, you must get this licence immediately.

Requirements for Obtaining the Shop and Establishment License

Users need to be well aware that specific documentation must always be provided to the relevant authorities at various phases of your existence when starting a business and beginning the registration procedure. Therefore, users are  required the scanned copies of the documents given below in order to register with the Karnataka Shop and Establishment Act.

• Identity/Address Proof of the owner (Aadhar card/ Driving license/Voter Card etc.)
• Incorporation Certificate/Memorandum of Article (In Case of Private Ltd. Company)
• The authorization letter for Authorised signatory/self-attestation Letter for Owner
• Challan/Payment Receipt /Transaction Receipt
• Duly filled Registration Form signed by owner/Authorized signatory

Procedure for Shop and Establishment Registration

The following procedure is required for online shop and establishment registration:

Online Application Form

Visit this website. This is the website for the E-Labour Department, which allows users to register for and renew business licences online. Simply move the mouse over the APPLY ONLINE menu item labelled “Shops and Commercial Establishments Act” on this page. It will take you to the Department of Labor of the Government of Karnataka, where you can register your company.

• 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 the 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