Labour licenses are statutory licenses mandatory and applicable for establishments to ensure the welfare of the employees in that Organization. The essential aims and objectives of the Labour registrations are the maintenance of a peaceful atmosphere in the labour sector as a whole; decent working conditions and improved quality of life for the workers; ensuring cooperation and healthy relations between the employers and the employees; systematic implementation of the various labor laws throughout the State; enhancing social security coverage of workers through better Labour policies, Schemes, and programs , etc. Among the various activities that come under the Labour Departments of the concerned state governments, every commercial establishment must register under Shop and Commercial Establishments Act 1960. It is an essential requirement for all business enterprises that appoint employees in that establishment. This license is also known as Gumasta License, Shop Act License, and Shop Act Registration in various locations in India.
“Every commercial or industrial or trading or banking or insurance establishment, an establishment or administrative service in which the persons employed are mainly engaged in office work, hotel, restaurant, boarding or eating house, cafe or any other refreshment house, a theatre or any other place of public amusement or entertainment and includes such other establishment as the Government may, by notification in the Gazette, declare to be a commercial establishment for this Act, but does not include a factory to which all or any of the provisions of the Factories Act, 1948 (Central Act 63 of 1948).”
Every Commercial Establishment, besides factories, is mandatory to register under the Shops and Establishment Act of 1960. This registration is compulsory for all business establishments, even if it is an office, must apply for an online license issued by the labor department of the concerned State. Such establishments apply for the license within 60 days of sanction of Trade License issued by the Panchyat, Municipal Corporation, or Municipality. Trade license registration is mandatory for registering under Shop and Establishment License. The applicant must apply for a shop act license with the Trade Name mentioned in the D & O Trade License issued by the LSGD. Both these licenses must obtain by all the establishments before starting any commercial operations or appointing an employee. These licenses apply to organizations like Sole Proprietorships, Partnership Firms, Private Limited Companies, LLPs, trusts, Societies, etc.
Id proof of the Applicant
Address proof of the Applicant
PAN of Business
Trade License Registration of Applicant
Rent Agreement / Office Address Proof
Partnership Deed
Certificate of Incorporation
MOA / AOA
D & O License / Trade License
An application for the renewal of a registration certificate granted under the Shops and Commercial Establishment Act 1960 (also known as labour registration renewal) shall be made at least thirty days before the expiry of the period mentioned in the License, in Kerala the renewal period is the month of November; For renewal of labour license, the applicant must file an online application along with the prescribed fees. The late filing of the application must charge a fine calculated as per the number of late days. At the time of renewal, we must update the details of all employees presently working in the establishment.
Kerala Labour Welfare fund is for promoting the welfare of labours and certain other matters connected herewith in the State of Kerala. It will come under the preview of THE KERALA LABOUR WELFARE FUND ACT, 1975. Every Establishment registered under the Shops and Establishment Act 1960 comes under the scope of labour welfare fund and must contribute to the Fund. Any person employed for hire or receives any remuneration for any work done in an establishment by working a period not less than 30 days during the preceding twelve months is eligible for labour welfare fund deduction. Both the employee and Employer must contribute to the Fund. This fund will be utilized for the benefits of the members in Labour Welfare Fund. Every member who required the benefit of the Fund must file an application to Labour Welfare Board.
The contribution rate applicable for different State Governments may vary as per the rules of the concerned States. The contribution rate applicable to the State of Kerala is given below.
Each Member has to donate a membership fee of Rs 20 per month. Every Employer contributes an amount of Rs 20/- per month for each employee.
Each self-employed person should pay an amount of Rs 40/- per month, which includes 20 rupees Member subscription and 20 rupees Employers subscription.
The Employer will have to pay both the employee contribution and employer contribution to the Board. The self-employee will remit the subscription by himself. Employers and the self-employed can remit subscriptions in advance from 6 months to one year.