Shop and Establishment Registration in Kerala (2026): LCAS, the 2026 Fees, Renewal, Hours and Leave

Kerala runs one of the tightest shop-registration regimes in India. Every shop and commercial establishment registers, including one-person shops with no employees, and the registration is renewed every year. In February 2026 the State also raised the fees for the first time since 2022. This guide is for shop owners, clinic and office owners, small employers and accountants in Thiruvananthapuram, Kochi, Kozhikode, Thrissur and the rest of Kerala. It explains who must register, the new fees, how to apply and renew on LCAS, working hours, leave, women's night shifts, penalties and a Kochi worked example.

Quick answer

Every shop and commercial establishment in Kerala, except units registered under the Factories Act, must register under the Kerala Shops and Commercial Establishments Act, 1960 within 60 days of starting, whatever the number of workers. Apply online on LCAS, the Labour Commissionerate Automation System. Since 5 February 2026, the fee runs from ₹70 with no employees to ₹5,250 above 100 workers, and the same fee is paid each year to renew.

• Renewal is yearly, opening in November; apply at least 30 days before expiry and LCAS renews automatically

• Up to 8 hours a day and 48 a week; overtime at twice the ordinary wage

• 12 days each of annual, sick and casual leave a year

• Seating for all staff is compulsory; women may work at night with consent and safeguards

What the Kerala Shops Act covers

The Kerala Shops and Commercial Establishments Act, 1960 (Kerala Act 34 of 1960) and the Kerala Shops and Commercial Establishments Rules, 1961 regulate registration, working hours, holidays, leave, wages and welfare in shops and commercial establishments across Kerala. "Establishment" is wide: shops, offices, banks, insurance and finance businesses, hotels, restaurants, bakeries, theatres, clinics and similar premises are all covered. The only blanket exception the Labour Commissionerate mentions in its FAQ is an establishment registered under the Factories Act, which is regulated under that law instead.

The Act is administered by the Labour Commissionerate. Applications go to the Assistant Labour Officer with jurisdiction over your area, and the whole process, from registration to renewal, now runs on the Labour Commissionerate Automation System (LCAS). Since the 2020 ordinance, later replaced by the Kerala Shops and Commercial Establishments (Amendment) Act, 2021, section 5A requires applications to be made through LCAS.

The shop registration is a labour-law registration. It is separate from the D&O trade licence issued by panchayats, municipalities and corporations, from GST, and from professional tax enrolment. The Labour Commissionerate asks for a copy of your local-body licence or your lease agreement with the application, so in practice you deal with both.

Who must register and by when

Everyone covered, regardless of headcount. The Labour Commissionerate's FAQ is explicit: shops and commercial establishments must register irrespective of the number of workers, so a proprietor running a shop alone registers too, at the lowest fee. This is different from States such as Rajasthan, Uttar Pradesh and Gujarat, which have recently taken small businesses out of registration.

Deadline. Apply online, with the fee and a copy of your local-body licence or lease agreement, within 60 days of the date the establishment starts.

Headcount for the fee. The fee depends on the number of employees you propose to employ on any day during the year for which the certificate is granted or renewed. Count everyone who works in the establishment, including part-timers and staff supplied by a contractor. If you plan to hire for the Onam or Christmas season, use the peak number.

Grant and refusal. The competent authority can cancel or suspend a registration obtained by misrepresentation or fraud, or where the employer has failed to comply with the Act or the rules, after giving the employer a hearing.

Kerala shop registration at a glance (2026)

All

Shops that must register

no minimum headcount

60 days

Time to apply

from starting the establishment

₹70

Fee with no employees

from 5 February 2026

Yearly

Renewal

auto-renewed on LCAS

Shop and establishment registration fees in Kerala

Rule 2G(1) of the 1961 Rules sets one fee for registration and for each annual renewal, based on the number of employees. On 4 February 2026 the Labour and Skills Department issued G.O.(P) No.12/2026/LBR, published as S.R.O. No. 161/2026 in the Kerala Gazette Extraordinary of 5 February 2026. It substituted a new table, in force at once. The draft had been published on 24 April 2025 for objections; the previous revision dated from 3 January 2022.

Registration and renewal fee (rule 2G, from 5 February 2026)

Employees on any day in the year	Fee	Earlier fee (Labour Commissionerate FAQ)
Nil	₹70	₹50
Up to 5	₹135	₹100
6 to 10	₹265	₹200
11 to 20	₹525	₹400
21 to 30	₹790	₹600
31 to 50	₹1,315	₹1,000
51 to 100	₹2,625	₹2,000
Above 100	₹5,250	₹4,000

Nil

Fee

₹70

Earlier fee (Labour Commissionerate FAQ)

₹50

Up to 5

Fee

₹135

Earlier fee (Labour Commissionerate FAQ)

₹100

6 to 10

Fee

₹265

Earlier fee (Labour Commissionerate FAQ)

₹200

11 to 20

Fee

₹525

Earlier fee (Labour Commissionerate FAQ)

₹400

21 to 30

Fee

₹790

Earlier fee (Labour Commissionerate FAQ)

₹600

31 to 50

Fee

₹1,315

Earlier fee (Labour Commissionerate FAQ)

₹1,000

51 to 100

Fee

₹2,625

Earlier fee (Labour Commissionerate FAQ)

₹2,000

Above 100

Fee

₹5,250

Earlier fee (Labour Commissionerate FAQ)

₹4,000

The new fees are roughly a third higher at every level. Because the fee is paid every year, a ten-person shop now pays ₹265 a year rather than ₹200. Many fee pages online still show the old table, and some show figures from before 2022. LCAS calculates the fee from your headcount; pay only what it shows. Anything an agent quotes above that is a service charge.

How to register on LCAS

Shop and establishment registration in Kerala

1. 1

   Create an LCAS account

   Open the Labour Commissionerate Automation System and register as an employer with your mobile number and email.

   Open LCAS
2. 2

   Choose registration under the Shops and Commercial Establishments Act

   Start a new application for your establishment and pick the office of the Assistant Labour Officer for your area.

3. 3

   Enter establishment and employee details

   Name and address, nature of business, date of commencement, employer and manager details, and employees by category, including contract staff.

4. 4

   Upload documents

   A copy of the licence from your panchayat, municipality or corporation, or your lease agreement, plus identity proof and constitution documents.

5. 5

   Pay the rule 2G fee online

   LCAS calculates the fee from the number of employees you declare.

6. 6

   Download the registration certificate

   Keep it at the premises and produce it to an Inspector on demand.

   Tip: Note the expiry date on the certificate: you will renew it every year.

Documents to keep ready

• Aadhaar and PAN of the proprietor, partners or directors
• D&O or trade licence from the local body, or the rent or lease agreement for the premises
• Partnership deed, LLP agreement or certificate of incorporation, where relevant
• List of employees with designation and date of joining, including contract staff
• Any licence your trade needs, such as FSSAI for food businesses

Why applications get returned, and how to fix them

Most delays on LCAS come from a handful of avoidable gaps. The commonest is a premises document that does not match the address typed in the form, for example a lease in the landlord's old door number or a D&O licence issued for a different room in the same building. Upload the current local-body licence or a lease that shows exactly the address you declare. The second is a headcount that does not match the fee paid: if you declare twelve workers but pay for the six-to-ten band, the application cannot be cleared until the difference is paid. The third is a mismatch between the applicant and the business, such as a partnership firm applying in a partner's personal name without the partnership deed. Upload the constitution document and make sure the employer named in the form is the person or entity that actually runs the shop.

Keep copies of everything you upload. When the Assistant Labour Officer raises a query, LCAS shows it against your application; answer it with the corrected document rather than starting a fresh application, so that your original filing date, which shows you applied within the 60-day window, is preserved.

Changes, a second branch, or closing down

Each place of business is a separate establishment, so a second branch, a separate godown where staff work, or a kiosk in a mall needs its own registration and its own annual fee. If you move premises, change the name of the shop, take in a partner or change the manager, update the registration on LCAS with supporting documents so the certificate matches what an Inspector finds on the spot. If you close, tell the Labour Office through LCAS and stop renewing; an unrenewed registration for a shop that has closed can otherwise generate notices later.

Renewal every year, automatically on LCAS

Kerala registrations run for a year and have to be renewed. The Labour Commissionerate's FAQ says renewal opens from November every year, and is done by submitting an online application with the fee and a list of employees.

The 2021 amendment, deemed in force from 9 November 2020, rewrote section 5A(6): an application for renewal must be made at least 30 days before the certificate expires, with the prescribed fee paid through LCAS, and the certificate is then renewed automatically. The same amendment omitted the rule that let the authority refuse renewal unless it was satisfied the Act had been substantially complied with, as part of the State's ease-of-doing-business reforms.

The practical calendar is simple. Each November, check your headcount for the coming year, update the employee list in LCAS, pay the fee for that band, and download the renewed certificate. If your headcount moves up a band mid-year, for example from ten to twelve workers, update the registration and pay any difference the portal asks for. Some guides mention a 25% surcharge for late renewal; we could not find that in the current official sources, so treat it with caution and renew on time.

The yearly Kerala registration cycle

Step 1

Open the establishment

apply within 60 days

Step 2

Pay rule 2G fee on LCAS

Step 3

Certificate for the year

Step 4

November: renewal opens

apply 30 days+ before expiry

Step 5

Auto-renewed on LCAS

same fee by headcount

Working hours, holidays, leave and overtime

Hours. No employee may be required or allowed to work more than 8 hours a day or 48 hours a week. Including a rest interval of at least one hour, the working day cannot spread over more than 10½ hours.

Overtime. Work beyond eight hours a day is overtime and is paid at twice the ordinary rate of wages. The Labour Commissionerate's FAQ makes a point that surprises many shopkeepers: even fifteen extra minutes spent serving a customer after closing earns overtime wages.

Weekly holiday. Every person employed must get one whole day off each week. The 2018 amendment substituted section 11 to make this rule apply to every employee.

Leave. After twelve months of continuous service, an employee is entitled to 12 days of annual leave with wages, 12 days of sick leave, and 12 days of casual leave with wages for any reasonable cause.

Seating. Since 2018, section 21B requires every shop and establishment to provide suitable seating for all workers, so that staff can sit whenever the work allows. It followed complaints from saleswomen in textile showrooms about standing through long shifts, and breaches are punishable under section 29.

Women at night. Women may now be employed at night, with their consent, if the employer provides adequate protection, security and transport between the workplace and home. The 2018 amendment requires the night shift to have at least five employees, of whom at least two are women. The Labour Commissionerate's FAQ confirms women may work after 9 pm only with their consent and with adequate protection.

Kerala Shops Act — key working-time rules

Rule	Limit or entitlement
Daily hours	8 hours
Weekly hours	48
Overtime rate	Twice the ordinary wage
Spread-over (with 1-hour rest)	10½ hours
Weekly holiday	One whole day
Annual / sick / casual leave	12 days each
Women at night	Consent, security, transport, 5-person shift with 2 women

Daily hours

Limit or entitlement

8 hours

Weekly hours

Limit or entitlement

48

Overtime rate

Limit or entitlement

Twice the ordinary wage

Spread-over (with 1-hour rest)

Limit or entitlement

10½ hours

Weekly holiday

Limit or entitlement

One whole day

Annual / sick / casual leave

Limit or entitlement

12 days each

Women at night

Limit or entitlement

Consent, security, transport, 5-person shift with 2 women

Worked example: a Kochi textile showroom

Mathew Textiles opens on MG Road, Ernakulam on 1 March with ten sales assistants, a cashier and an agency security guard. Headcount is twelve.

Registration. The owner applies on LCAS by 30 April, within 60 days, uploads the corporation's D&O licence and pays ₹525 for the 11 to 20 band.

Renewal. In November she adds four seasonal staff for the Christmas sale, taking the expected peak to sixteen; the band is unchanged. She renews on LCAS well over 30 days before expiry and pays ₹525 again for the following year.

Overtime. A shop assistant (Grade C) in the Ernakulam municipal area earns at least ₹14,230 a month on the August 2026 cost-of-living index. Over 26 working days that is about ₹547 a day, or about ₹68 an hour on an eight-hour day. Overtime at twice the rate is about ₹137 an hour, so six extra hours in a busy week cost about ₹821. Kerala's dearness allowance moves with the price index, so check the current figure on our Kerala minimum wages page.

Other compliance. With twelve employees the showroom files the quarterly Form H return, provides seating for every assistant, and sets up an Internal Committee under the POSH Act. It deducts Kerala professional tax where half-yearly salary exceeds ₹12,000 and checks ESIC coverage.

Registers, returns and penalties

Registers. The Labour Commissionerate lists what an employer must keep: a register of employment in Form A, service records in Form BB, holidays given to workers in Form E, a register of holidays and leave in Form F, a visit book for Inspectors, and the extracts of the Act displayed in Malayalam. An establishment with ten or more workers files quarterly returns in Form H.

Penalties. Section 29 sets the fines for breaching the Act. The 2018 amendment raised the maximum to ₹1 lakh for a first offence and ₹2 lakh for a second or later offence, up from ₹5,000 and ₹10,000, and extended it to the new seating duty. These figures come from reports of the 2018 Ordinance, which was later replaced by an amendment Act; check the current consolidated text if you face proceedings. The competent authority can also cancel or suspend a registration for non-compliance after a hearing.

Common mistakes and how to fix them

Assuming a one-person shop is exempt. It is not in Kerala. Register at ₹70 and renew each year.

Paying the old fee. Since 5 February 2026 the fees are higher. If an older challan or agent's quote shows ₹200 for six to ten workers, it is out of date.

Missing the renewal window. Renewal opens in November. Apply at least 30 days before expiry so the certificate is renewed automatically and never lapses.

Ignoring the seating rule. The right to sit is a statutory duty, not a courtesy. Provide chairs or stools where staff work and let them use them whenever the work allows.

Treating the Labour Codes as a replacement. The four Labour Codes came into force on 21 November 2025, but the State Shops Act still applies alongside them. See our Labour Codes guide.

Official links

• LCAS — Labour Commissionerate Automation SystemRegistration and renewal
• Labour Commissionerate, KeralaActs, rules, circulars and call centre 155300
• FAQ under the Kerala Shops Act (PDF)Registration, renewal, hours, leave, registers
• S.R.O. No. 161/2026 — new fee table (PDF)Kerala Gazette, 5 February 2026

What to do next

Count everyone who will work in your shop over the coming year, including contract staff, and register on LCAS within 60 days of opening, paying the fee for that band. Diary the November renewal. Then set up the Form A register, leave records and an overtime log, provide seating, and check pay against the Kerala minimum wages, which change with the price index. Our salary slip generator shows overtime and deductions clearly, and the hourly rate calculator helps you work out overtime rates. If you also run a branch in Bengaluru, see the Karnataka shop registration guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Is shop and establishment registration mandatory in Kerala?

Yes. The Labour Commissionerate says every shop and commercial establishment, except those registered under the Factories Act, must register under the Kerala Shops and Commercial Establishments Act, 1960, whatever the number of workers. Apply online within 60 days of starting the establishment, with the fee and a copy of your local-body licence or lease agreement.

What is the shop registration fee in Kerala in 2026?

From 5 February 2026, rule 2G charges ₹70 with no employees, ₹135 for up to five workers, ₹265 for six to ten, ₹525 for eleven to twenty, ₹790 for 21 to 30, ₹1,315 for 31 to 50, ₹2,625 for 51 to 100 and ₹5,250 above 100. The same fee applies to renewal.

How often must a Kerala shop registration be renewed?

Every year. The Labour Commissionerate says renewal applications open from November each year. Section 5A(6) asks you to apply at least 30 days before the certificate expires, with the fee paid through the Labour Commissionerate Automation System (LCAS); the certificate is then renewed automatically.

What are the working hours under the Kerala Shops Act?

No employee may work more than 8 hours a day or 48 hours a week. Work beyond that is overtime at twice the ordinary wage, even if it is only fifteen minutes spent serving a customer. Including at least one hour of rest, the working day cannot spread over more than 10½ hours.

Can women work night shifts in Kerala shops?

Yes, with their consent. Since the 2018 amendment, women may work at night if the employer provides adequate protection, security and transport home, and the night shift has at least five employees of whom at least two are women. The Labour Commissionerate's FAQ confirms women can be employed after 9 pm only with their consent.

What is the penalty for breaking the Kerala Shops Act?

The 2018 amendment raised the maximum fine under section 29 to ₹1 lakh for a first offence and ₹2 lakh for a repeat, and extended it to the new duty to provide seating. Running without a valid registration certificate is a breach of section 5A.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Kerala Gazette Extraordinary No. 481, 5 February 2026 — G.O.(P) No.12/2026/LBR, S.R.O. No. 161/2026, Kerala Shops and Commercial Establishments (Amendment) Rules, 2025 — Labour and Skills (E) Department, Government of Kerala (gazette copy via Uncomplycate) · accessed 12 October 2026
2. 2.FAQ under Kerala Shops and Commercial Establishments Act — Labour Commissionerate, Government of Kerala · accessed 12 October 2026
3. 3.Labour Commissionerate Automation System (LCAS 2.0) — Labour Commissionerate, Government of Kerala · accessed 12 October 2026
4. 4.Kerala Bill No. 65 of 2021 — Kerala Shops and Commercial Establishments (Amendment) Bill, 2021 — Kerala Legislative Assembly (via PRS Legislative Research) · accessed 12 October 2026
5. 5.Draft Kerala Shops and Commercial Establishments (Amendment) Rules, 2025 — TeamLease RegTech · accessed 12 October 2026
6. 6.Kerala Govt brings Ordinance to give employees 'right to sit' in shops and establishments — LiveLaw · accessed 12 October 2026