What Happens If My IT Company Isn't Registered Under the Karnataka Shops & Establishment Act?

Hi,

I would like to know about the Karnataka Shops & Establishment Act. My company is an IT service company with 30 employees. So far, I haven't registered under the Karnataka Shops & Establishment Act. What could be the consequences if a labor officer inspects my company or serves a notice? What penalties could be imposed? Should I register under the Shops & Establishment Act or the Factories Act?

Regards, Sdkar

Hi,

I would suggest you to get registered immediately; otherwise, it will create problems for you, your directors, and the company. Your company's total strength is 30, so you can pay Rs. 6250/- and get registered in it.

Regards,
Indresh.

All companies, though, not employees, also have to be registered under The Karnataka Shops and Commercial Establishment Act of 1961. If you have 30 employees, Form A has to be filled and submitted with a DD of Rs 6250/- at the State Bank of Mysore Treasury branch or cash. Additionally, a list of documents relating to the company needs to be attached, such as the lease agreement, PAN card, list of directors, etc.

The inspector will visit the premises, and penalties may include fines, imprisonment, or both.

Hi,

The above two replies are self-explanatory; however, please find the attached soft copy of the Karnataka Shops and Commercial Establishments Act, 1961 for your reference.

Regards,
Saquib