If you’re planning to start a business or already running one in Kerala, Shop and Establishment registration is a legal requirement you cannot afford to ignore. Whether it’s a small retail shop, a large corporation, or even a work-from-home business, compliance with the Kerala Shops and Commercial Establishments Act is essential.
Learn everything about Shop and Establishment registration in Kerala, including its purpose, which needs to register, required documents, registration steps, key benefits, legal obligations, and frequently asked questions.
In Kerala, Praans Consultech offers quick and hassle-free shop and establishment registration.

What is Shop and Establishment Registration?

Shop and Establishment registration is a state-specific legal requirement for all commercial establishments operating within Kerala. It falls under the Kerala Shops and Commercial Establishments Act, 1960, which regulates working conditions and ensures employees’ rights related to wages, working hours, leave, holidays, and other service conditions.

For whom is registration required under the Kerala Shop and Establishment act?

All kinds of commercial establishment are subject to registration, including:
Retail shops and wholesale outlets

Restaurants, cafes, hotels
IT companies and BPOs
Theatres and entertainment houses
Educational institutions
Freelancer offices, work-from-home setups
Online businesses with a local office
Service providers like salons, clinics, gyms, etc.

Even if you are not employing any employee, registration is mandatory.

Is Shop and Establishment Registration Mandatory in Kerala?

Yes, it is mandatory for all commercial establishments to register under the Act within 60 days of starting operations. Its applicability is for both self-employed and employed individuals those are running a business.
Failing to obtain the registration can lead to penalties, legal notices, and even temporary closure of business activities by authorities.

Required records for the registration of shop and establishment in Kerala

Here is the list of documents you will typically need for the registration:

The business or proprietor’s PAN Card
An owner’s ID or Aadhaar Card
Passport size photo of the applicant
Rental agreement or ownership proof of business premises
Electricity bill of the premises (latest)
Details of employees (Name, Designation, Age and Year of Joining, Gender)
Partnership deed or MOA/AOA (for partnership/private limited company)
Board resolution or authorization letter (if filed by authorized person)

Make sure all documents are scanned, clear, and up-to-date for a smooth registration process.

Step-by-Step Registration Process in Kerala

The Kerala Government has facilitated online registration through its official Labour Department portal. Here’s a step-by-step breakdown:

Step 1: Visit the Official Portal

Go to the Kerala Labour Department website:

https://lcas.lc.kerala.gov.in/

Step 2: Fill Application Form

Log in and fill the Form B with details such as:

Name of establishment
Category of business
Employer and employee details
Nature of work
Working hours
Address and contact info
Date of commencement of business

Step 3: Upload Documents

Upload all necessary files in the size and format specified.

Step 4: Pay the Fees

Use a debit card, credit card, UPI, or net banking to make the required online registration payment. The cost is determined by the employees the employer hire and the type of business they run.

Step 5: Submission and Acknowledgement

Submit the application. An acknowledgement receipt will be generated instantly.

Step 6: Inspection and Approval

The supplied documentation and the premises may be checked by Labour Inspector. Once approved, you will receive the Registration Certificate via email or download it from your dashboard.

Government Fees for Shop and Establishment Registration in Kerala

The number of Staff determines the fees:

Number of Employees	Registration Fees (INR)
Nill	₹ 55/-
0 – 5	₹ 105/-
6 – 10	₹ 210/-
11 – 20	₹ 420/-
21 – 30	₹ 630/-
31 – 50	₹ 1050
51-100	₹ 2100
Above 100	₹ 4200

Renewal and Validity

The registration is generally valid for 1 year. Renewal must be done before the certificate expires to avoid penalties.
Renewal can also be done online by logging into the Labour Department portal. Keep track of the expiry date and apply at least 30 days before the validity ends.

Benefits of Shop and Establishment Registration

Legal Recognition: Gives your company credibility and legal standing.
Bank Account Opening: Mandatory for current account opening in the business name.
License for Other Registrations: Essential for GST, trade license, MSME, etc.
Protection of Employee Rights: Guarantees adherence to labour welfare regulations.
Avoid Legal Penalties: Prevents fines and legal actions by authorities.
Easy Inspections: Helps during labour inspections and audits.
Business Contracts: Required by vendors and clients for service agreements.

Penalties for Non-Compliance

Non-registration or violation of the Kerala Shops and Establishments Act can attract:

Fines ranging from ₹250
Repeat violations may lead to higher penalties-₹10/day
Local authorities may decide to suspend or close the businesses
Disqualification from government tenders or benefits

Being compliant from the beginning is the safest way to protect your business from legal hurdles.

Change in Ownership or Closure

If the establishment undergoes a change in ownership, business nature, address, or shuts down permanently, it must be notified to the Labour Department within 15 days.
Failing to update such changes can result in outdated records and problems during audits or inspections.

The principal of the act

The Maximum of eight hours can be worked in a day, and a maximum of 48 hours can be worked in a week

Weekly Holidays: One day mandatory holiday every week
Overtime: Overtime is compensated at double the regular rate.
Leave Rules: Earned leave, casual leave, sick leave rules apply
Employment of Women & Children: Regulated working hours and restrictions
Display of Notices: Registration certificate must be displayed prominently
Records Maintenance: Attendance, salary, leave, and wage records required
Compliance with these provisions is checked by Labour Inspectors during inspections.

Final Thoughts

For each and every company owner in Kerala, registering a Shop and Establishment is an essential legal step, even if there is no employee hired by employer. It not only protects your business under state labour laws but also helps build trust with clients, banks, and government departments.
By completing your registration promptly and maintaining compliance, you can operate your business in Kerala without any legal interruptions. Always consult a labour law consultant or compliance expert if you’re unsure about the process or applicable provisions.

About Praans Consultech

Praans Consultech is not just a labour law compliance firm, it’s your business’s strategic partner in staying legally strong and operationally smooth. From Shop and Establishment registrations in Kerala to pan-India labour law compliance, we help businesses focus on growth while we take care of the rest.
Our offerings include:

Labour Law Advisory

PAN India Registration and Compliance

End-to-End Compliance Outsourcing

Labour Law Audits and Inspection Support
Smart Compliance Software Solutions
Whether you’re a startup, MSME, or a large enterprise, Praans Consultech delivers reliable, fast, and affordable compliance support backed by industry experts and modern tools.
Need help? Reach us at info@praansconsultech.com or call us on +91-90505-76838
Explore more: Praans Consultech – Compliance Made Simple, Scalable, and Smart.

Frequently Asked Questions (FAQs)

Q1. Is registration required for work-from-home freelancers in Kerala?

Yes. If you are operating a business from home and issuing invoices, registration is advisable to remain compliant.

Q2. Can I apply for Shop and Establishment registration offline in Kerala?

No, the process is entirely online now via the Labour Department’s official portal.

Q3. Are trade licenses and Shop and Establishment registrations the same thing?

No. The Local municipality issues trade licenses, and the labour department issues Shop and Establishment licenses.

Q4. Do I need registration if I don’t have any employees?

Yes, even if there are no employees, registration is mandatory for operating any commercial activity.

Q5. How can I update my registration details?

For the latest update in your registration, kindly check the labour department portal and select the option for amendment. Submit revised documents and pay the amendment fee if required.

Shop and Establishment Registration in Kerala

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