Karnataka Shops and Commercial Establishments (Amendment) Act 2026: Lifetime Registration and What Changed
Since 4 September 2026, a Karnataka Shops and Commercial Establishments registration stays valid until the business closes. There are no more renewals. An establishment with 10 or more workers that is already registered under the OSH Code no longer needs a separate Shops Act registration. Fines are much higher, but most offences can now be compounded. The changes come from the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026, Karnataka Act No. 38 of 2026, which came into force on the day it was published. Here is what it means for a Bengaluru business.
What changed
| Point | Before | Since 4 September 2026 |
|---|---|---|
| Validity of registration | Up to 5 years, then renewal | Until the establishment closes; the renewal provision is omitted |
| Units registered under the OSH Code | Needed a separate Shops Act registration | Exempt if they have 10 or more workers and an OSH Code registration |
| Godown or store within 100 m of the main premises | Separate registration | Covered by the main registration |
| Inspector’s window before registration is deemed granted | 30 days | 7 days |
| Running without registration | Up to 6 months’ jail and a fine up to ₹5,000 | Fine up to ₹50,000, no jail |
| Compounding | Not available | 50% of the fine for a first offence, 75% for later ones |
| Service certificate | No time limit | Within 7 days of the employee’s request; employers may not keep original certificates |
Applications, certificates, fee payments and inspector notices can now all be electronic. An offence cannot be compounded if it is repeated more than twice in a year, and every penalty needs a hearing first. Appeals go to an officer not below Assistant Labour Commissioner within 30 days, after depositing the fine.
What did not change
- Working hours: still 9 hours a day and 48 a week, a break after 5 hours, a 12-hour spread-over, and overtime at twice the ordinary rate. The 2025 proposal for a 10-hour day was not passed.
- Who must register: every shop and commercial establishment, including a proprietor with no staff, within 30 days of starting.
- 24×7 operation: still runs under the separate notification of 27 September 2024 for establishments with 10 or more employees, with conditions on hours, weekly offs and women working at night.
Registration fees on e-Karmika
| Employees | Fee |
|---|---|
| None (proprietor only) | ₹405 |
| 1 to 9 | ₹810 |
| 10 to 19 | ₹5,400 |
| 20 to 49 | ₹13,500 |
| 50 to 99 | ₹27,000 |
| 100 to 250 | ₹54,000 |
| 251 to 500 | ₹67,500 |
| 501 to 1,000 | ₹94,500 |
| Over 1,000 | ₹1,01,250 |
These are the Schedule I fees revised in February 2025. Apply on the Labour Department’s e-Karmika portal with Form A, the owners’ or directors’ PAN and Aadhaar, proof of premises with the owner’s NOC, and the incorporation documents or partnership deed.
What to do now
- Already registered? Keep your certificate; it now runs until closure. Update the department within the time allowed when your address, ownership or headcount changes.
- Starting a business? Register on e-Karmika within 30 days. The fee is a one-time cost now that renewals are gone.
- 10 or more workers? The OSH Code has applied since 21 November 2025. Karnataka’s own rules under the Code were still in draft in October 2026. Once you hold an OSH Code registration, you no longer need a separate Shops Act registration.
- Got a notice? Ask for compounding. Paying half the fine for a first offence closes the matter.
Other 2026 changes for Bengaluru employers
- Minimum wages: revised for 81 scheduled employments with effect from 22 May 2026. For shops in Zone 1, which covers the Greater Bengaluru Authority area, the unskilled rate is about ₹23,400 a month before VDA. Employer bodies have challenged the notification, but no stay has been reported.
- Professional tax: nil for salaries below ₹25,000 a month; ₹200 a month above that, with ₹300 in February.
- Trade licence and nameboards: the Greater Bengaluru Authority’s five corporations now handle trade licences, renewable for 1 to 5 years. Kannada must take 60% of a shop’s nameboard, in the upper half, and licences are checked for it.
Frequently asked questions
Do I need to renew my Karnataka shop and establishment registration?
No. Since 4 September 2026 a registration is valid until the establishment closes.
Is shop registration needed if I am registered under the OSH Code?
Not if you have 10 or more workers and hold an OSH Code registration. Smaller establishments still register under the Shops Act.
What is the fine for running a shop without registration in Karnataka?
Up to ₹50,000, with no jail term. A first offence can be compounded at 50% of the fine.
TAXAJ’s Bengaluru office in J.P. Nagar handles Shops and Establishments registration, professional tax and payroll compliance for businesses across Bengaluru. See our Shops and Establishments registration and Karnataka compliance pages, or talk to our Bengaluru team.
Last updated 26 October 2026. Sources: Karnataka Shops and Commercial Establishments (Amendment) Act, 2026 (Karnataka Act No. 38 of 2026), Karnataka Gazette Extraordinary, 4 September 2026; Karnataka Shops and Commercial Establishments Act, 1961, Schedule I fees as revised in February 2025; notification of 27 September 2024 on 24×7 operation; minimum wages notification of 22 May 2026; Karnataka professional tax amendment, 2025; Kannada Language Comprehensive Development (Amendment) Act, 2024; draft Karnataka OSH Rules, January 2026. General information only; check the current position before you act on it.
