Karnataka Shops and Commercial Establishments (Amendment) Act, 2026

The Government of Karnataka has enacted the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026, with effect from 4^th September 2026, to simplify compliance requirements and promote digital governance for shops and commercial establishments across the state.

The amendment enables online registration and compliance processes, reduces approval timelines, removes duplicate registration requirements for certain establishments, and strengthens employee protections through improved workplace practices. The Act also revises penalty provisions and introduces mechanisms for compounding and appeal of offences, thereby improving ease of doing business while safeguarding employee interests.

Key Features:

• Exemption from separate registration for establishments employing 10 or more workers that are already registered under the Occupational Safety, Health and Working Conditions Code, 2020. Additionally, no separate registration is required for godowns or storage facilities located within 100 meters of the principal establishment.

• End-to-end digital processing of registrations and compliance-related submissions.

• Reduction in registration timeline from 30 days to 7 days for faster approvals.

• Validity of registration till business closure, eliminating the need for periodic renewals.

• Mandatory issuance of service certificates to employees within seven days of request.

• Prohibition on retention of employees’ original documents by employers.

• Revised penalties and introduction of appeal and compounding provisions to strengthen enforcement and transparency.