The Shop and Establishment License is a mandatory legal registration for businesses operating within a state’s jurisdiction. The Karnataka Shop and Establishment License registration is governed under the Karnataka Shops and Commercial Establishments Act and applies to shops, offices, commercial establishments, IT companies, startups, freelancers, and service-based businesses.
If you are planning to start a business or are already running one in Karnataka, obtaining the Karnataka Shop and Establishment License is essential for legal compliance, opening a current bank account, availing government schemes, and avoiding penalties.
The Government of Karnataka provides an online facility to apply Karnataka Shop and Establishment License online through the official Labour Department portal. Applicants can also apply offline via the municipal office or the labour inspectorate.
Official Portal: https://labour.karnataka.gov.in
What is the Karnataka Shop and Establishment License?
Table of Contents
The Karnataka Shop and Establishment License is a statutory registration issued by the Department of Labour, Karnataka to regulate working conditions, employee rights, wages, holidays, and hours of work in commercial establishments.
This license ensures that businesses comply with labor laws related to:
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Working hours
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Weekly holidays
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Employee welfare
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Leave policies
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Child labor restrictions
The registration also acts as legal proof of business existence, which is required for GST registration, MSME (Udyam) registration, trade licenses, and government tenders.
Eligibility Criteria for Karnataka Shop and Establishment License
To apply for a Karnataka Shop and Establishment License, the applicant must meet the following eligibility conditions:
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Age Requirement
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Applicant must be 18 years or older
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Business Type
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Shops, commercial establishments, offices, hotels, restaurants, IT firms, consultants, freelancers, and startups
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Residential Requirement
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Business must be physically located within Karnataka
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Employee Requirement
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Applicable even if no employees are hired
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Income / BPL Requirement
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No income limit or BPL condition required
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Special Categories
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Home-based businesses
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Women entrepreneurs
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Startups and MSMEs
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E-commerce sellers operating in Karnataka
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Documents Required for Karnataka Shop and Establishment License Application
Applicants must keep the following documents ready before applying:
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Aadhaar Card of proprietor/partners/directors
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PAN Card of the business or the owner
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Address proof of business premises:
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Electricity bill / Water bill / Property tax receipt
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Rent Agreement (if premises are rented)
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Ownership proof (if self-owned)
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Passport-size photograph of the applicant
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Employee details (if applicable)
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Digital signature (for online submission)
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Mobile number linked with Aadhaar
How to Apply for the Karnataka Shop and Establishment License Online Method
Follow these step-by-step instructions to apply Karnataka Shop and Establishment License online:
Step 1: Visit the Official Portal
Go to the official Karnataka Labour Department portal: https://labour.karnataka.gov.in
Step 2: Register / Login
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Click on Shop & Establishment Registration
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Register using:
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Mobile number
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Email ID
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Verify via OTP and create login credentials
Step 3: Fill the Application Form
Provide accurate details, including:
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Business name
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Nature of business
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Address of establishment
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Number of employees
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Commencement date
Step 4: Upload Required Documents
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Upload scanned documents in PDF format (200–300 KB)
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Ensure clarity and correctness
Step 5: Pay Applicable Fees
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Fees vary based on the number of employees
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Payment modes:
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Net banking
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Debit/Credit card
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UPI
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Step 6: Submit Application & Track Status
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Submit the application
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Save the application reference number
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Track status online
How to Apply for Karnataka Shop and Establishment License Offline
Applicants who prefer offline Karnataka Shop and Establishment License registration can follow these steps:
Step 1: Visit the Local Office
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Municipal Corporation / Town Panchayat
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Labour Inspector Office
Step 2: Collect the Application Form
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Request Shop and Establishment Registration Form
Step 3: Fill the Form Carefully
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Use block letters
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Avoid overwriting
Step 4: Attach Required Documents
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Self-attested copies
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Passport-size photographs
Step 5: Submit & Collect Acknowledgment
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Submit to the concerned officer
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Obtain a receipt for reference
Track Karnataka Shop and Establishment License Application Status
Applicants can track the status of their Karnataka Shop and Establishment License application online by:
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Visiting https://labour.karnataka.gov.in
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Clicking Track Application Status
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Entering application number / mobile number
Offline applicants can visit the same office where the application was submitted.
Renewal / Re-Verification Process
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Validity: Generally valid for 1–5 years
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Renewal Window: 30 days before expiry
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Documents Required:
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Previous license copy
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Updated employee details
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Address proof (if changed)
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Common Issues & Solutions
Problem 1: Aadhaar Details Mismatch
Solution: Update Aadhaar details via UIDAI before applying.
Problem 2: Document Upload Failure
Solution: Upload PDF files between 200–300 KB with clear scans.
Problem 3: Application Rejected
Solution: Re-check business address proof and resubmit.
Problem 4: Payment Failure
Solution: Retry payment after clearing the browser cache or use another payment mode.
Important Government Links
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Karnataka Labour Department: https://labour.karnataka.gov.in
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MyScheme Portal: https://www.myscheme.gov.in
FAQ
Q. How can I apply for a Karnataka Shop and Establishment License online?
A. You can apply through the official Karnataka Labour Department portal.
Q. Is the Shop and Establishment License mandatory in Karnataka?
A. Yes, it is mandatory for all commercial establishments.
Q. What is the fee for a Karnataka Shop License?
A. Fees depend on the number of employees and duration.
Q. Can I apply without employees?
A. Yes, even single-owner businesses must register.
Q. How long does approval take?
A. Usually 7–15 working days.
Q. Is renewal compulsory?
A. Yes, renewal is mandatory before expiry.
Q. Can freelancers apply?
A. Yes, freelancers operating from Karnataka are eligible.
Q. Is GST required before applying?
A. No, GST is not mandatory for Shop License registration.
Q. Can I edit my application after submission?
A. Only if the application is returned for correction.
Q. Where can I download the Karnataka Shop License form?
A. From the official Labour Department portal.
Conclusion:
The Karnataka Shop and Establishment License is a crucial legal requirement for businesses operating in the state. Whether you are a startup, freelancer, or established enterprise, timely registration ensures compliance, credibility, and access to government benefits.
Applicants are strongly advised to apply through the official Karnataka Labour Department portal and regularly check for updates, renewal timelines, and policy changes.