{"id":90909,"date":"2026-10-26T14:04:46","date_gmt":"2026-10-26T08:34:46","guid":{"rendered":"https:\/\/www.taxaj.com/learn\/karnataka-shops-establishments-amendment-act-2026\/"},"modified":"2026-10-26T14:04:46","modified_gmt":"2026-10-26T08:34:46","slug":"karnataka-shops-establishments-amendment-act-2026","status":"publish","type":"post","link":"https:\/\/www.taxaj.com/learn\/karnataka-shops-establishments-amendment-act-2026\/","title":{"rendered":"Karnataka Shops and Commercial Establishments (Amendment) Act 2026: Lifetime Registration and What Changed"},"content":{"rendered":"

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.<\/strong> 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.<\/p>\n

What changed<\/h2>\n
\n\n\n\n\n\n\n\n\n\n\n\n
Point<\/th>\nBefore<\/th>\nSince 4 September 2026<\/th>\n<\/tr>\n<\/thead>\n
Validity of registration<\/td>\nUp to 5 years, then renewal<\/td>\nUntil the establishment closes; the renewal provision is omitted<\/td>\n<\/tr>\n
Units registered under the OSH Code<\/td>\nNeeded a separate Shops Act registration<\/td>\nExempt if they have 10 or more workers and an OSH Code registration<\/td>\n<\/tr>\n
Godown or store within 100 m of the main premises<\/td>\nSeparate registration<\/td>\nCovered by the main registration<\/td>\n<\/tr>\n
Inspector’s window before registration is deemed granted<\/td>\n30 days<\/td>\n7 days<\/td>\n<\/tr>\n
Running without registration<\/td>\nUp to 6 months’ jail and a fine up to \u20b95,000<\/td>\nFine up to \u20b950,000, no jail<\/td>\n<\/tr>\n
Compounding<\/td>\nNot available<\/td>\n50% of the fine for a first offence, 75% for later ones<\/td>\n<\/tr>\n
Service certificate<\/td>\nNo time limit<\/td>\nWithin 7 days of the employee’s request; employers may not keep original certificates<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

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.<\/p>\n

What did not change<\/h2>\n