Registration for Shops and Establishments in Kerala

Introduction

To legally run a business in India, registration under the Shops and Establishment Act is essential. Each state enforces its own rules to meet local regulatory needs. In Kerala, securing this registration is vital for compliance with state-specific legal and labour laws. Ensure your business operates within the legal framework by registering under the Kerala Shops and Establishment Act. IndiaFilings makes the process simple and hassle-free. Start your registration with IndiaFilings today and stay compliant with Kerala’s regulations

Shop and Establishment Registration in Kerala

The Kerala Shops and Establishments Act, 1960 was introduced to regulate business operations and safeguard employee rights in the state. This Act lays down clear rules regarding wages, working hours, holidays, leave entitlements, and other employee benefits. Every commercial establishment in Kerala—regardless of size or sector—is required to register under this Act to operate legally

Key Provisions of the Kerala Shops and Establishments Act

The Act outlines specific obligations for business owners and provides safeguards for employees. Here are some of the core regulations:

Employment of Women, Children, and Young Workers

Employment of children is strictly prohibited.
Women and individuals below 17 years of age are not allowed to work before 6:00 AM or after 7:00 PM.

Working Hours

Employees may work a maximum of 8 hours per day and 48 hours per week.
Overtime is capped at 10 hours a day.
No employee can work more than 4 hours continuously without a break.

Special Provisions for Pregnant Employees

Pregnant women are exempted from work before and after delivery.
Employers must ensure they are not assigned tasks that involve heavy lifting during pregnancy.

Weekly Holidays

Every shop must remain closed for at least one fixed day per week.
This designated day off must be displayed prominently and can only be changed once every three months.

Leave and Wages

Employees are entitled to 12 days of paid leave after 12 months of continuous service.
Sick leave is granted with wages in cases of illness or accidents.

Termination Guidelines

Employees with less than six months of service cannot be terminated without valid cause.
A one-month notice is mandatory for those employed for more than six months.

Overtime Compensation

Overtime must be compensated at twice the regular wage rate.

Record-Keeping Requirements

Businesses must maintain accurate records for compliance and inspection purposes. Key documents include:

Form A/B – Employee details
Form D – Working hours
Form E – Holiday records
Inspection Book – For Labour Department use
Holiday Notice – Displayed at the premises

Benefits of Registering Under the Kerala Shops and Establishments Act

Registering your business under this Act offers several advantages:

Legal Recognition: Serves as official proof of your business’s existence
Business Bank Account: Enables opening of current accounts
Government Compliance: Ensures readiness for labour inspections
Access to Schemes: Eligibility for state and central government business benefits
Employee Welfare: Guarantees labour law compliance and employee protection

Eligibility Criteria

This Act applies to a wide range of commercial entities, including:

Retail shops
Hotels, restaurants, and cafés
Lodging houses
Theatres and amusement centers
Public entertainment venues
Trading, industrial, and banking institutions

All businesses offering goods or services—regardless of size—must register under this Act

Exemptions

Some entities are exempt from registration under the Act, including:

Managerial employees with decision-making authority
Field staff and mobile service professionals
Government undertakings
Local municipal authorities
RBI-regulated financial institutions
Temporary stalls and vendors at fairs
Establishments under the Factories Act, 1948

Documents Required

To register under the Kerala Shops and Establishments Act, you’ll need the following:

Details of employer/manager
PAN and Aadhaar of proprietor
Rental agreement (if applicable)
Partnership deed or MOA/AOA
Certificate of incorporation (for companies)
Employee list with roles and joining dates
Bank details (account number, IFSC code)

Online Registration Procedure

The Kerala Labour Department facilitates online registration via its official portal. Follow these steps:

Visit the Official Portal: Go to the Kerala Labour Department website
Select Online Registration: Choose “Kerala Shops and Establishments Act, 1960”
Fill in Details: Provide information about the employer, establishment, employee count, and business nature
Upload Documents: Fill in the employee details form and attach supporting documents
Submit Application: Note your application and temporary registration numbers
Make Payment: Pay the applicable registration fee online
Print Confirmation: Download a copy for future reference

Validity and Renewal

The registration is valid for 1 year from the date of issuance
Renewal must be done 30 days prior to expiry
Non-renewal may result in penalties or suspension

Renewal Process

The renewal process is also available online through the Labour Department portal and follows a similar application procedure

Penalties for Non-Compliance

Failure to comply with the Kerala Shops and Establishments Act can lead to:

Initial Penalty: ₹250
Daily Fine: ₹10 per day until rectified
Additional fines for violation of key sections such as 6, 8, and 9

How IndiaFilings Can Help

At IndiaFilings, we simplify your shop and establishment registration process in Kerala with:

Expert Consultation: Guidance from experienced professionals
Document Assistance: Help collecting and submitting required paperwork
End-to-End Online Registration: We manage the full process on your behalf
Compliance Monitoring: Ensure ongoing adherence to labour laws
Renewal Support: Timely reminders and assistance with renewals

About the Author

Rohit

Rohit is a seasoned legal writer known for translating complex legal concepts into clear, practical guidance. His work helps entrepreneurs navigate legal requirements with confidence, empowering them to launch, manage, and grow their businesses seamlessly

August 29, 2025