We have a branch office in Kochi, Kerala, established in 2010, with only one employee on our payroll. We have a GST certificate, but we don’t have a Shop and Establishment certificate yet. Now, we want to obtain this certificate to pay Professional Tax. What are the rules and procedures to apply for the Shop and Establishment certificate in Kerala, considering our office has been operational for over 13 years without this registration, and we already have a GST certificate?
Queries:
Rules and procedures for applying for Shop and Establishment certificate
Penalties or consequences for delayed registration
Required documents and information for registration
Application process (online or offline)
Specific requirements or exemptions for single-employee offices with GST certificate
Rules and Procedures for Applying for the Shop and Establishment Certificate in Kerala
The Kerala Shops and Commercial Establishments Act, 1960 regulates the working conditions of employees in shops and establishments in the state, ensuring proper working hours, holidays, and leave entitlements. Even though your office has been operating for 13 years, it’s important to regularize the registration.
Steps to Apply:
Eligibility: Any commercial establishment, including offices, must register under the Act within 60 days of starting operations. Although you’ve been operational for several years, you can still proceed with the registration.
Who Needs to Register: All establishments (including those with a single employee) engaged in commercial activities must register.
2. Penalties or Consequences for Delayed Registration
Since your office has been operational since 2010 without registration, you may be subject to penalties. Here’s what you should know:
Penalty for Non-Compliance: If an establishment does not obtain the registration within the stipulated time (60 days), penalties may be imposed under the Kerala Shops and Commercial Establishments Act. The penalties could range from a fine to further legal action, but these are typically handled with a focus on compliance rather than punitive measures for small offices.
Late Fees: When you apply now, there may be a late fee, but it’s better to proceed with registration to avoid further non-compliance issues.
3. Required Documents and Information for Registration
To apply for the Shop and Establishment Certificate, you will need the following documents and information:
GST Registration Certificate: Since you already have this, you can use it to support your application.
Employee Details: Provide details of your single employee, including name, designation, and working hours.
Proof of Address: Proof of the office’s physical address in Kochi, such as a rental agreement or utility bill in the company’s name.
PAN Card of Proprietor/Company: A copy of the PAN card of the employer or proprietor.
ID Proof of Employer: This can be the Aadhaar card, passport, or voter ID of the employer.
Bank Details: Bank account proof of the establishment.
4. Application Process (Online or Offline)
The Government of Kerala provides both online and offline application methods for obtaining the Shop and Establishment Certificate. The online process is more streamlined and is recommended for ease and efficiency.
Register as a new user by providing your email and other necessary details.
Fill in the application form with details about your establishment and upload the required documents.
Pay the registration fee online, which may vary depending on the type and size of the establishment.
Once submitted, your application will be reviewed, and the certificate will be issued digitally.
Offline Process:
You can also submit the application in person at the local Municipal or Panchayat office where your branch is located.
The same documents will be required, and you will need to pay the fee in person.
5. Specific Requirements or Exemptions for Single-Employee Offices with GST Certificate
Single-Employee Exemptions: Although there are no exemptions specifically for single-employee offices, the process of registration remains the same. The Kerala Shops and Establishments Act applies to any commercial establishment, regardless of the number of employees. Therefore, having only one employee does not exempt your business from registration.
GST Certificate: Since you already have a GST registration, it can be used as a supporting document, but it does not exempt you from the need to register under the Shops and Establishments Act.