The Kerala Shop and Establishment Act 1960 intends to legalize businesses and safeguard the rights of employees. This law establishes the necessary guidelines for Kerala’s annual salaries, leaves, working hours, holidays, maternity leave, and other benefits.
Companies must register under this act to get a mandatory license to run a business successfully in Kerala. Companies must register following this act to obtain permission to run their businesses in Kerala well. This guide provides details on shop and establishment registration in Kerala. Keep reading to learn more.
Definitions
An establishment or administrative service where the employees are primarily engaged in office work, a hotel, restaurant, boarding or eating house, cafe or any other refreshment house, a theater or any other place of public amusement or entertainment, and any other establishment that the government may, by notification in the Gazette, declare to be a commercial establishment are all considered to be commercial establishments.
“Establishment” refers to a store or other place of business;
A shop is any establishment that engages in trade, business, or customer service. Whatever the location, it also includes any offices, storerooms, godowns, or warehouses used in connection with such sales or companies. However, it excludes commercial establishments and shops attached to factories where employees are entitled to benefits under the Factories Act of 1948.
Eligibility Requirements for Registration Under the 1960 Kerala Shop and Establishments Act
Every business establishment located in Kerala state territory is subject to this act. Every service, no matter how big or small, must register. Therefore, shop and establishment registration is necessary in Kerala for all retail stores, lodging facilities, restaurants, theaters, and public entertainment venues.
The Kerala Shops and Commercial Establishment Act Exempts Certain Establishments from Registration
This law contains some exemptions. The list is as follows:
- Employees working in a management position in any establishment employees in management positions in the organization.
- People who give services that involve traveling people who provide travel-related services.
- Central or state government undertaking establishments for essential or state government undertakings.
- Establishments under local authorities
- Cantonment authorities and establishments under the Reserve Bank of India.
- Shops and establishments in marketplaces where temporary fairs are occasional stores and businesses located in areas with frequent temporary fairs.
- Establishments that do not fall under the Factory Act of 1948.
How do I register establishments and shops online in Kerala?
The steps that are required to register under the act:
- Visit the official website of the Kerala government’s labor division as your first step.
- After reading the relevant instructions, click “Proceed” after selecting the “Online Registration” tab.
- Step 3 is to choose the district name and registration office after choosing the Kerala Shops and Establishments Act 1960.
- Locate the key areas, which are:
- Name of the company and the manager,
- Name and mailing address of the businesses,
- Name of the company and the kind of business
- Number of males and females employes
- Owner’s mobile number, etc.
- Step 5: Download the format for the employee information, complete the fields, and click “apply.”
- Step 6: Write down the temporary registration number and the application number.
- Step 7 is to download the challan and make the necessary payment.
- Step 8: Display and print the application using that temporary registration number.
Registration Paperwork for Kerala Shops And Commercial Establishments Act
To register, applicants must submit the following paperwork:
- Details of the employer or manager.
- The trust deed, partnership deed, or association documents.
- Bank details
- For rented shops, a rental deed is necessary.
- Managers, directors, and officers.
- Details of applicants’ PANs and Aadhaars
- List of employees and their names, address, date of birth, workplace designation, and year of joining.
- MOA or AOA
- Certificate of incorporation
Registering Under the Kerala Shops and Commercial Establishments Act: Required Documents
The following fees need to be collected for applicants to register their stores and other businesses in Kerala:
- No employees – Rs. 10
- 50 rupees for five workers
- 5-10 employees – Rs. 50
- 10-20 employees – Rs. 200
- 20-30 employees – Rs. 300
- 30-50 employees – Rs. 500
- 50-100 employees- Rs. 1000
- Above 100 employees – Rs. 2000
Steps for Kerala Shops and Commercial Establishments to Check Application Status of Registration
You can check the status of your application using a straightforward process. These are as follows:
- Step 1: Visit the official website of the labor department of the Kerala government.
- Step 2 is to enter the registration number.
- Step 3: Complete the captcha and select “show.”
Validity of Shop and Commercial Establishment Registration Certificates in Kerala
This registration certificate for a shop and commercial establishment in Kerala is valid for one year from the issue date. Applicants must apply for certificate renewal at least 30 days after the certificate’s expiration date.
Continue reading if you want to know how to renew your certificate.
How do I renew a shop license online in Kerala?
Applicants must renew their licenses every year. Otherwise, they may encounter difficulties in running a business. This renewal process is as follows:
Step 1: Go to the Kerala government’s official labor department website.
Step 2: Navigate to the portal and select “online renewal.”
Step 3: Go to the license renewal page by picking “online renewal.”
Step 4: Select “renewal of registration” as the renewal type.
Step 5: Review your license information in the following window.
Step 6: Next, select the period of renewal for the option.
Step 7: Download the employee’s details format, fill in the blanks, and next select the Browse tab.
Step 8: Finally, choose “apply for renewal.”
Kerala Shops and Commercial Establishments Act Rules
Here are some of the most essential rules for shops and commercial establishments in Kerala.
- Employment of Women, Children, and Young People
This act prohibits children from working in shops or commercial establishments on the state’s territory. Women and minors under the legal limit of 17 are not allowed to work before or after 6 a.m. or after 7 p.m.
- Working Hours
Employees should limit their work to eight hours per day and forty-eight hours per week. Working hours should be limited to ten per day, including overtime. Employees should not also work for more than four hours without a break.
- Exemption of work
Pregnant women are exempt from working before delivery or for a specified period after delivery. They are also not permitted to carry loads while pregnant.
- Regulations and Work
- A company will not fire an employee who has been with them for more than six months without good reason.
- Organizations must provide at least one month’s notice to employees who have not served for six months.
- Employers must pay their employees’ average daily wages for the leave they receive.
- Employers should pay holiday pay to employees who have served for at least a year.
- Employers must keep a copy of the license in the shop or commercial establishment premises.
- Week-off
Every store and commercial establishment should be closed at least one day per week. Shop owners should post this closing day in a visible area for customers. This day, however, should be changed more than once every three months.
- Annual leave Paid
After 12 months of service, employees get access to 12 days of paid vacation. You can extend it for a maximum of 24 days. Furthermore, under Section 13 (2) (a), employees with wages are entitled to twelve sick days for accidents or sickness.
- Employees’ Rights
- Employees may request special leave for sterilization.
- Casual leave for 12 days is allowed for employees with filled wages.
- Employees may only put in fifty hours of overtime per quarter.
- Employers should pay employees twice as much for overtime.
- Penalties
There is a risk of being penalized if all rules and regulations do not apply correctly.
- Breaking the rules of the Shop and Establishment Act can result in a penalty of $250 plus an additional 10 per day if the cause of the cost persists.
- Any violation of sections 6, 8, 9, 11, 12, 13, 13A, 14, 18, 21, 21A, 22, 5D, 5E, and 5F are punishable.
The Advantages of the Shops and Commercial Establishment Registration Act in Kerala
The advantages of Kerala shop and establishment registration are listed below for convenience.
- It serves as legal proof for the shop’s and establishment’s owners.
- The registration certificate grants the right to operate any business within the state’s borders.
- Applicants who hold this certificate are eligible to open a current business bank account.
- The certificate holders can supplement the state government’s inspections.
- Business owners who register under the act are eligible for government benefits for small businesses.
Save these details about shop and establishment registration in Kerala to start your business within the state. The procedures outlined in the guide will make it easier to complete the registration process.