Is It Legal for Company X to Operate in Bangalore Without Karnataka Registration?

This company, X, is registered in Hyderabad and has a branch in Bangalore. However, the company has not been registered in Karnataka. Even the PF of employees is in Hyderabad. The organization is in the ITES sector.

1) Is it legal to operate in Karnataka in this manner?
2) If I have to report this, who would that be?

If the company has a registered office in Hyderabad and if there are any branch offices in Bangalore, the following registrations in Bangalore are mandatory:

1) Registration with Shops and Commercial Establishment
2) Registration of Professional Tax (Both EC and RC)
3) Trade Licence Certificate
4) Sales Tax, if applicable

PF can be contributed in the parent company and there is no harm.

Now in Karnataka, to my knowledge, ITES companies are exempted from any compliance under the Shops and Establishment Act. However, they have to apply for Professional Tax. Additionally, there are service tax and sales tax implications.

If you suspect that they are engaging in any illegal activities, contact the local Police Station and file a General Diary (GD). The authorities will then handle the situation further. Other departments cannot directly address your complaint as you do not have the legal standing to do so.