In short
- Shops and commercial establishments in the places the Act covers, including Bengaluru, register within 30 days of starting: shops, offices, IT and service firms, hotels, restaurants, cafes and theatres.
- Registration is online only, on e-Karmika (Labour Department). If the Inspector does not refuse within 7 days, the establishment is treated as registered.
- Since 4 September 2026 a registration stays valid until the business closes; the renewal clause was removed. Changes and closure are reported within 15 days.
- Hours: 9 a day and 48 a week; with overtime, at most 10 hours a day, paid at twice the wage. One full day off a week and 10 paid national and festival holidays a year.
- The 2026 amendment removed jail terms and set fines: up to ₹3,000 for a first offence such as not registering, and ₹5,000 for a repeat.
Who must register
The Karnataka Shops and Commercial Establishments Act, 1961 applies to the places listed in its Schedule, which include Bengaluru, and to areas the government adds by notification. Every establishment there registers within 30 days of starting work.
- Covered: shops, offices that mainly do office work, IT, consultancy and other service firms, hotels, restaurants, cafes, theatres and places of amusement.
- Not covered: government offices, banks, hospitals, clinics and other places that treat or care for the sick, and the offices of lawyers or doctors with no more than 3 employees.
- IT, ITES and biotech firms register like any other establishment. Since 2001 they are exempt only from the rules on opening and closing hours and the weekly closing day.
- Establishments registered under the OSH Code: the Occupational Safety, Health and Working Conditions Code, 2020, in force since 21 November 2025, makes establishments with 10 or more workers register under it. From 4 September 2026 an establishment already registered under the Code is in the Shops Act's exemption list. Establishments with fewer than 10 workers still register under the Shops Act.
How the Labour Department applies the OSH Code exemption in practice is still being settled, and Karnataka's rules under the Code were only in draft in 2026. We check the position for your business before you apply.
How to register on e-Karmika
- Open the Labour Department's e-Karmika portal and create the employer's login.
- Fill in the application (Form A): the establishment's name and address, the employer and manager, the nature of business, the date of starting and the number of employees.
- Pay the registration fee online. It depends on the number of employees.
- The Inspector examines the application. If it is not refused within 7 days, the establishment is treated as registered.
- Download the registration certificate (Form C).
Since the 2026 amendment everything is electronic: the application, the fee, the certificate and the closure notice.
After registration
- No renewal. From 4 September 2026 the registration is valid until the business closes. The e-Karmika portal still describes a five-year certificate, so check the certificate you hold and ask us if it shows an end date.
- Changes (owner, address, number of employees) are reported in Form D within 15 days.
- Closure is reported within 15 days, and the certificate is returned.
- Give every employee an appointment order within 30 days of joining.
- New from 4 September 2026: give a service certificate within 7 days of an employee asking for it, and do not keep an employee's original certificates.
Working hours, overtime and the weekly holiday
| Rule | Limit under the Act |
|---|---|
| Daily hours | 9 hours a day |
| Weekly hours | 48 hours a week |
| Overtime | Total work with overtime at most 10 hours a day (stock-taking and accounts days excepted), at most 50 overtime hours in any 3 continuous months, paid at twice the normal wage |
| Rest interval | 1 hour after 5 hours of work |
| Spread-over | At most 12 hours in a day, rest included |
| Weekly holiday | The establishment closes one day a week, fixed at the start of the year or within 30 days of opening; every employee gets one whole day off each week |
A 2025 proposal to allow 10-hour working days (12 with overtime) was not passed. The limits above still apply, and the 2026 amendment did not change them.
Leave and holidays
- Earned leave: 1 day for every 20 days worked, which can be carried forward up to 45 days.
- Sick and casual leave: up to 12 days a year for sickness, an accident or another reasonable cause.
- National and festival holidays: 10 paid holidays a year under the Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963: 26 January, 15 August and 2 October, and seven more that include 1 May and 1 November. The rest are festival holidays the employer fixes after consulting the employees.
- Polling day is a paid holiday.
- Work on a holiday earns twice the wages, or the day's wages and another day off in its place.
Women working at night
Women may work at night (between 8 pm and 6 am) only when they are willing and the employer meets every condition below. The hours, overtime, rest, spread-over and weekly-holiday rules still apply to them.
- The woman's written consent.
- Free transport from home to work and back, with security and GPS tracking.
- Night work by rotation.
- Enough security guards on duty.
- Separate rest rooms, toilets, lockers and washing facilities, and a dispensary.
- A crèche, where needed, at the employer's cost.
Breaking these conditions can lead to the cancellation of the registration and a fine of at least ₹10,000.
Fines after the 2026 amendment
| Offence | Fine |
|---|---|
| Not registering, and most other breaches | Up to ₹3,000 for a first offence; up to ₹5,000 for a repeat |
| Overtime and register rules | Up to ₹2,000 |
| Employing a child, or breaking the rules for women at night | At least ₹10,000 |
| Obstructing an Inspector | Up to ₹10,000 |
| Falsely claiming deemed registration | Up to ₹50,000 |
Jail terms were removed. Most offences can be settled (compounded) by paying 50% of the fine for a first offence and 75% for later ones, no more than twice a year. An appeal lies within 30 days to an officer not below the rank of Assistant Labour Commissioner, after depositing the fine.
Other registrations that sit beside it
- Trade licence: a separate licence from the city corporation for carrying on the trade at the premises. The shops registration does not replace it.
- Professional tax: an employer registered under the Shops Act with more than 5 employees pays ₹2,500 a year, and deducts PT from salaries each month. See our guide to professional tax in Karnataka.
- Kannada on the name board: the Kannada Language Comprehensive Development (Amendment) Act, 2024 requires name boards of commercial establishments to show Kannada in the upper half, on 60% of the board. In March 2024 the High Court told the state not to take coercive action against shops while it heard a challenge; check the current position before you change your board.
- PF and ESI apply by the number of employees (20 for PF, 10 for ESI), and GST by turnover.
Questions people ask
Is shop and establishment registration compulsory in Bengaluru?
Yes, for every shop and commercial establishment, including offices and IT firms, within 30 days of starting. Government offices, banks, hospitals and clinics, and the offices of lawyers or doctors with no more than 3 employees are outside the Act.
Does the registration have to be renewed?
No, not since 4 September 2026: the registration is valid until the business closes. The e-Karmika portal still mentions a five-year certificate, so check the certificate you hold.
How much is the fee?
The fee depends on the number of employees and is paid online on e-Karmika with the application. We confirm the exact fee for your case in the written quote.
Does an IT company in Bengaluru need it?
Yes. IT, ITES and biotech firms register like other establishments; they are exempt only from the rules on opening and closing hours and the weekly closing day.
Can employees in Karnataka work 10 or 12 hours a day?
Not as normal hours. The Act allows 9 hours a day and 48 a week; with overtime, work can go up to 10 hours a day, paid at twice the wage. A 2025 proposal for longer days was not passed.
Is the shops registration the same as a trade licence?
No. The shops registration is with the Labour Department and covers employment rules; the trade licence is a separate licence from the city corporation for the trade carried on at the premises.
Sources
Written from these official pages and notifications, checked on 4 Nov 2026. Rules change by notification: before you act, check the latest position or ask us.
- Karnataka Shops and Commercial Establishments Act, 1961 (India Code)
- Karnataka Legislative Council: Shops and Commercial Establishments (Amendment) Bill, 2026, as passed
- e-Karmika portal (Labour Department, Karnataka)
- Karnataka Industrial Establishments (National and Festival Holidays) Act, 1963 (India Code)
- Ministry of Labour: the four Labour Codes in force from 21 November 2025
- Karnataka PT schedule: ₹2,500 for establishments with more than 5 employees
General information, not legal or tax advice for your case. Parishrama Consulting Services is a private firm, not a government office.