Shop Act License in Rajasthan (2026): Who Must Register, LDMS Fees, the 2026 Amendment and Working Hours

If you run a shop, office, showroom, coaching centre, restaurant or clinic in Jaipur, Jodhpur, Udaipur, Kota or anywhere else in Rajasthan, the "shop act licence" is the registration under the Rajasthan Shops and Commercial Establishments Act, 1958. Two changes in the last fourteen months reshaped it: small establishments no longer have to register, and the hours rules were loosened. This guide is for owners, small employers and their accountants. It explains who must register now, the one-time fee, how to apply on the LDMS portal, the new working-time limits, seven-day trading, penalties, and a worked example for a Jaipur store.

Quick answer

Since 20 August 2025, establishments employing 0 to 10 workers are exempt from registration under the Rajasthan Shops and Commercial Establishments Act, 1958. With 11 or more workers, you must register online on the Labour Department's LDMS portal (through Rajasthan SSO) within 30 days of starting work and pay a one-time fee that depends on headcount, starting at ₹20,000 for 11 to 50 employees. There is no renewal.

• Exempt shops still follow the Act's hours, weekly holiday and leave rules

• From 17 December 2025: up to 10 hours a day, 48 a week, overtime capped at 144 hours a quarter

• Report changes within 7 days and closure within 10 days

• Seven-day trading is allowed for registered shops that give rotational weekly rest and appointment letters

What the Rajasthan shop act covers

The Rajasthan Shops and Commercial Establishments Act, 1958 (Rajasthan Act 31 of 1958) regulates working conditions in shops, commercial establishments, restaurants, eating houses, theatres and places of public amusement in the areas where the State has applied it, which include all the large towns. It sits alongside the Rajasthan Shops and Commercial Establishments Rules, 1959, which set the forms and fees. A "commercial establishment" is broad: offices of any trade or profession, banks, insurance and brokerage offices, agencies and similar premises all count, as do restaurants and hotels.

The Act does four things that matter to a small business. It requires registration with the area Inspector (now subject to the 2025 exemption), sets daily and weekly working hours and rest intervals, requires a weekly holiday, and gives employees annual leave with wages. It also restricts the employment of children and young people. Penalties for breaches are listed in section 33.

The shop act registration is a labour-law document. It is not the municipal trade licence that Jaipur Greater, Jaipur Heritage and other urban bodies issue, and it is not a GST or Udyam registration. Banks and payment gateways often ask for "shop act" proof when opening a current account; if you are exempt, keep a copy of the exemption notification and use your GST certificate, trade licence or Udyam certificate instead.

The August 2025 exemption: no registration up to 10 workers

On 19 August 2025 the Labour Department issued notification F.14(11)(3), published in the Rajasthan Gazette Extraordinary on 20 August 2025. Using its power under section 3(2) of the Act, the State exempted establishments employing zero to ten workers from registration under section 4 of the Act and rule 3 of the 1959 Rules. Before this, every establishment, even a one-person shop with no employees, had to register and pay the fee.

The exemption is limited to registration. Nothing in the notification switches off the rest of the Act, so an exempt shop must still keep within the daily and weekly hours, give a weekly holiday, allow annual leave and pay overtime correctly. Inspectors can still visit, and wage, bonus and social-security laws apply on their own terms. Commentators who reviewed the notification make the same point.

Count workers carefully. The notification speaks of workers employed, so count everyone you pay to work in the establishment, including part-timers and people supplied by a contractor such as guards and housekeeping staff. Counting only the people on your own payroll can put you on the wrong side of the line. If your headcount moves around ten during the year, the safe course is to register once you cross it.

Already registered? Registrations granted before August 2025 remain on the register. There is no need to cancel one because you now fall within the exemption; a valid certificate is still useful proof of the business address.

Rajasthan shop act at a glance (2026)

11+

Workers that need registration

0–10 exempt since 20 Aug 2025

₹20,000

One-time fee, 11–50 employees

no renewal

10 hours

Daily hours limit

48 a week

144 hours

Overtime cap per quarter

was 50

The December 2025 amendment: a 10-hour day

The second change concerns working time. On 17 December 2025 the Governor promulgated the Rajasthan Shops and Commercial Establishments (Amendment) Ordinance, 2025 (Ordinance No. 3 of 2025), published in the Gazette on 18 December. The Assembly then passed Bill No. 5 of 2026 to replace it, and the Governor gave assent on 24 March 2026. It was published as the Rajasthan Shops and Commercial Establishments (Amendment) Act, 2026 (Act No. 5 of 2026) on 27 March 2026 and is deemed to have come into force on 17 December 2025.

The Act makes five changes. In section 7, the daily limit rises from nine to ten hours, the weekly limit stays at 48 hours, and the quarterly overtime cap rises from 50 to 144 hours. In section 9, the longest stretch of work before a half-hour rest rises from five to six hours. Sections 2, 21 and 22 raise the minimum age of apprentices and children from twelve to fourteen, and the night-work bar now covers young people aged fourteen to eighteen. The Statement of Objects and Reasons says the change follows a Government of India deregulation docket and is meant to let employers create more jobs.

One drafting point is worth noticing. The first proviso to section 7(1), which caps the total day including overtime at ten hours except on stock-taking and accounting days, was not changed by the Act. Read literally, the ordinary day and the overall daily cap are now both ten hours, so overtime in Rajasthan mainly arises when weekly hours exceed 48. Until the Labour Department clarifies this, plan rosters so that no one works more than ten hours on an ordinary day.

Rajasthan shop act registration fees

Under the Rajasthan Shops and Commercial Establishment (Amendment) Rules, 2019 (G.S.R. 43, notified on 26 November 2019), rule 3 sets a one-time fee based on the maximum number of employees on any day in the year. The same notification deleted the renewal rule (rule 6) and the renewal form, so you pay once and the certificate stays valid.

One-time registration fee (rule 3, as substituted in 2019)

Maximum employees on any day	Fee	Status in 2026
0 to 10	₹5,000	Exempt from registration since 20 Aug 2025
11 to 50	₹20,000	Must register
51 to 100	₹50,000	Must register
101 and above	₹1,50,000	Must register

0 to 10

Fee

₹5,000

Status in 2026

Exempt from registration since 20 Aug 2025

11 to 50

Fee

₹20,000

Status in 2026

Must register

51 to 100

Fee

₹50,000

Status in 2026

Must register

101 and above

Fee

₹1,50,000

Status in 2026

Must register

These amounts are large compared with other States, and they are the figures in the 2019 notification as reproduced by compliance publishers; we could not open a copy of the fee table on the Labour Department's own site. The LDMS portal calculates the fee from the headcount you enter, so check the figure it shows before you pay. Some online guides mention a doubled fee for late applications, but we found no such rule in the 2019 text, so treat that claim with care.

Anything an agent charges above the portal fee is a service charge. Because the fee is one-time, there is no reason to pay anyone for "annual renewal" of a Rajasthan shop registration.

How to apply on LDMS

Registration is online through the Labour Department Management System (LDMS), which you reach with a Rajasthan Single Sign-On (SSO) ID. Applications go to the Inspector for your area.

Registering under the Rajasthan Shops Act

1. 1

   Create or log in to your SSO ID

   Sign up on the Rajasthan SSO portal with your Aadhaar, Jan Aadhaar or mobile number, then open the LDMS application (Registration under various Labour Acts – Citizen User).

   Open LDMS
2. 2

   Choose shop and establishment registration

   Under establishment registration, select the Rajasthan Shops and Commercial Establishments Act, 1958 and start a new application in Form 1.

3. 3

   Enter establishment and employer details

   Name and address, nature of business, date of commencement, employer and manager names, weekly closing day, and the number of employees by category, including contract staff.

4. 4

   Upload documents

   Identity of the employer, proof of premises, a photo of the establishment and any constitution document for a firm or company.

5. 5

   Pay the one-time fee

   The portal calculates the fee from your headcount. Pay online and note the application number.

   Tip: If the headcount you entered is ten or fewer, you are exempt; check why you are being asked to pay before proceeding.

6. 6

   Download the certificate

   After the Inspector approves the application, download the registration certificate from LDMS and display it prominently at the premises, as section 4(2) requires.

Documents to keep ready

• Aadhaar and PAN of the proprietor, partners or directors
• Rent agreement or sale deed, and a recent electricity or property-tax bill for the premises
• Owner's no-objection letter if the premises are rented
• Photograph of the shop front showing the name board
• Partnership deed, LLP agreement or certificate of incorporation, where relevant
• List of employees with designation and date of joining, including contract workers
• Any licence your trade needs before opening, such as FSSAI for food businesses

After registration: changes, closure and records

No renewal. Since the 2019 rule change, the certificate does not expire. Ignore any reminder that asks for a "renewal fee" unless it comes from the portal itself.

Changes. Section 5 requires you to tell the Inspector about any change in the particulars you registered, such as the name, address, manager or headcount band, within 7 days of the change. The Inspector amends the certificate or issues a fresh one.

Closure. Section 6 requires you to inform the Inspector in writing within 10 days of closing the establishment, so the registration can be cancelled.

Records. Keep a register of employees, attendance and hours, a wage register with overtime entries, leave records and a notice of the weekly holiday. If you use the seven-day trading exemption described below, keep the extra-hours register and the acknowledgements for appointment letters too.

Working hours, weekly holiday, leave and overtime

Hours. Since 17 December 2025, no employee may work more than 10 hours in a day or 48 hours in a week. No stretch of work may exceed 6 hours without a rest interval of at least half an hour, and section 10 limits the spread-over, from start to finish including rest, to 12 hours.

Overtime. The total overtime an employee works cannot exceed 144 hours in a quarter. Section 8, which the 2026 Act did not change, entitles an employee who works beyond the daily or weekly limit to wages at one and a half times the ordinary rate, where the ordinary rate is basic wages plus allowances but not bonus. Section 8 still refers to nine hours, so pay overtime for every hour beyond nine in a day as well as beyond 48 in a week until the State clarifies the point. Note that the Code on Wages, in force since 21 November 2025, sets overtime at twice the normal rate; see our Labour Codes guide and pay at the higher rate where the Code applies.

Working-time rules before and after 17 December 2025

Rule	Before	From 17 Dec 2025
Daily hours	9	10 hours
Weekly hours	48	48 (unchanged)
Work before a half-hour rest	5 hours	6 hours
Overtime cap	50 hours a quarter	144 hours a quarter
Spread-over	12 hours	12 hours (unchanged)
Minimum age of a child worker	12	14

Daily hours

Before

9

From 17 Dec 2025

10 hours

Weekly hours

Before

48

From 17 Dec 2025

48 (unchanged)

Work before a half-hour rest

Before

5 hours

From 17 Dec 2025

6 hours

Overtime cap

Before

50 hours a quarter

From 17 Dec 2025

144 hours a quarter

Spread-over

Before

12 hours

From 17 Dec 2025

12 hours (unchanged)

Minimum age of a child worker

Before

12

From 17 Dec 2025

14

Weekly holiday and seven-day trading. Section 12 requires every establishment to close one day a week, notified to the Inspector, and every employee to get one whole day off. Notification S.O.20 of 19 June 2026 exempts registered establishments from the closing-day rule in section 12(1) and the opening-hours rule in section 11(1), on conditions: one paid day of weekly rest for every employee by rotation, no more than ten hours a day and 48 a week with a separate record of extra work, overtime paid as the law requires, and an appointment letter for every employee with a copy sent to the area Labour Inspector. Break any condition and the exemption is treated as revoked. It replaced an April 2024 notification on the same subject.

Annual leave. Under section 14, an adult who has worked 240 days or more in a calendar year earns one day of paid leave for every twelve days worked, to be taken in the following year.

Women at night. Section 22 bars employing women, and now young people aged fourteen to eighteen, at night. A Labour Department notification dated 4 July 2025, published in the Gazette on 8 July 2025, exempts registered shops and establishments from that bar for women, on conditions: the woman's consent; an appointment letter and photo identity card for every woman employee; the employer's full responsibility for her safety, including safe transport between home and workplace at night; a separate rest room and lockers; no night work for a pregnant woman in the three months before her expected delivery or the three months after childbirth; and arrangements to prevent sexual harassment. Breaking any condition ends the exemption automatically. Because it covers only registered establishments, a small shop that is exempt from registration would need to register voluntarily before rostering women at night. The bar on night work by young people has no such exemption. If you plan late-evening shifts, take advice before rostering women after dark.

Before rostering women at night (notification of 4 July 2025)

0/7

• Establishment registered under the Act
• Written consent from each woman employee
• Appointment letter and photo ID card issued
• Safe transport between home and workplace arranged
• Separate rest room and lockers provided
• No night work 3 months before and after childbirth
• Sexual-harassment prevention arrangements in place

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Worked example: a Jaipur home-furnishing store

Sharma Home Furnishings opens on MI Road, Jaipur on 1 November with nine sales staff, a billing clerk and two security guards supplied by an agency. Headcount is twelve.

Registration. Twelve is more than ten, so the store is not covered by the exemption. The owner registers on LDMS within 30 days, by 1 December, and pays the ₹20,000 one-time fee for the 11 to 50 band. Had she counted only her own ten employees, she would have wrongly treated the store as exempt.

Seven-day opening. She wants to open every day in the festive season. Because she is registered, she can rely on S.O.20: each employee gets one day off a week in rotation, works no more than ten hours a day, and receives an appointment letter, with copies sent to the Inspector.

Overtime. A sales assistant on the State's unskilled rate of ₹7,410 a month (26 working days) earns about ₹285 a day. Taking an eight-hour day as the base, his hourly rate is about ₹36. In a Diwali week he works 54 hours, six above the weekly limit. At one and a half times, overtime is about ₹53 an hour, or roughly ₹320 for the week; at the Code on Wages rate of twice the ordinary rate it would be about ₹430. Well-run shops pay above the minimum, so use actual wages. Check current rates on our Rajasthan minimum wages page.

Other compliance. With more than ten employees she also checks ESIC coverage, sets up an Internal Committee under the POSH Act because she has 10 or more workers, and will need PF registration once headcount reaches 20 or more employees.

Penalties and inspections

Section 33(1) of the Act, as reproduced in current published texts, punishes a breach of the registration, hours, rest, holiday and leave provisions with a fine of up to ₹250 for a first offence and up to ₹500 for a second or later offence. Lesser breaches, including some wage-related provisions, carry a smaller fine under section 33(2). The 2026 amendment did not touch section 33, and we found no later change to these amounts.

The fines are small, but they are rarely the real risk. An Inspector who visits for a shop act complaint will also look at minimum-wage payments, the wage register, overtime and appointment letters, and a failed condition can cancel the seven-day exemption. Wage-law penalties under the Code on Wages are much higher. Prosecution under the Shops Act needs an Inspector's complaint or the State's sanction and is tried by a magistrate.

Rajasthan shop act — what to do

Step 1

Count workers, incl. agency staff

Step 2

0–10: exempt

keep the Aug 2025 notification

Step 3

11+: register on LDMS

within 30 days

Step 4

Pay one-time fee

Step 5

Report changes

within 7 days

Common mistakes and how to fix them

Registering when you don't need to, or not registering when you do. The ten-worker line is a count of workers, not of payroll employees. Include agency staff. If you are at eleven or more, register even if an agent says "small shops are exempt now".

Paying for renewal. There has been no renewal since 2019. If an old certificate shows an expiry date, ask the Inspector to confirm it under the one-time fee rule rather than paying again.

Not updating LDMS. A new address or a jump into the 51 to 100 band is a change in particulars. Report it within seven days so the certificate matches your premises when a bank or landlord checks it.

Using seven-day trading without the paperwork. S.O.20 applies only to registered establishments and only while the conditions are met. Missing appointment letters or an unrecorded tenth-plus hour revokes the exemption automatically.

Assuming the Labour Codes replaced the Shops Act. The four Codes came into force on 21 November 2025, and Rajasthan has since notified its own rules under them, including OSH rules listed by the Labour Department in June 2026. State shops acts continue alongside the Codes, so follow both until Rajasthan aligns them. Our Labour Codes guide tracks the changes.

Official links

• LDMS — Labour Department Management SystemRegistration via SSO; verify a certificate
• Rajasthan SSOSingle sign-on login
• Labour Department, Rajasthan — notificationsActs, rules and notifications
• Bill No. 5 of 2026 (PDF, PRS)Text of the 2026 amendments
• Act No. 5 of 2026 — gazette copy (PDF)Published 27 March 2026
• Registration exemption, 0–10 workers — gazette copy (PDF)Dated 19 August 2025

What to do next

Count everyone who works in your establishment, including agency staff. At ten or fewer, keep a copy of the August 2025 exemption notification with your records; at eleven or more, register on LDMS and pay the one-time fee. Then set up an hours and overtime register, a weekly-off roster and appointment letters, and check pay against the Rajasthan minimum wages. Our salary slip generator itemises overtime clearly, and the hourly rate calculator helps you work out overtime rates. Also check whether your municipal body needs a trade licence. If you have a branch in Ahmedabad too, see the Gujarat shop act guide.

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

Frequently asked questions

Is a shop act licence mandatory in Rajasthan?

Not for every shop any more. A Labour Department notification of 19 August 2025, published on 20 August 2025, exempts establishments employing 0 to 10 workers from registration under section 4 of the Rajasthan Shops and Commercial Establishments Act, 1958. An establishment with 11 or more workers must still register within 30 days of starting work. The hours, holiday and leave rules apply to all.

What is the shop act registration fee in Rajasthan?

The Rajasthan rules set a one-time fee by the highest number of employees on any day: ₹20,000 for 11 to 50, ₹50,000 for 51 to 100 and ₹1,50,000 above 100, as substituted in 2019. The ₹5,000 slab for up to ten employees now applies only to voluntary registrations. Confirm the amount the LDMS portal calculates before paying.

Does the Rajasthan shop registration need renewal?

No. The 2019 amendment to the Rajasthan Shops and Commercial Establishments Rules, 1959 replaced periodic renewal with a one-time fee and deleted the renewal rule and form. You must still report any change in the registered particulars within 7 days and the closure of the establishment within 10 days.

What are the working hours under the Rajasthan Shops Act now?

Since 17 December 2025, an employee may work up to 10 hours a day and 48 hours a week, with a half-hour rest after no more than 6 hours of work. Overtime is capped at 144 hours a quarter, and the working day, including rest, cannot spread over more than 12 hours.

Can a shop stay open seven days a week in Rajasthan?

Yes, if it is registered and follows the conditions in notification S.O.20 of 19 June 2026. Every employee must get one paid day of weekly rest by rotation, work no more than ten hours a day and 48 a week, be paid overtime as the law requires and receive an appointment letter, with a copy sent to the area Labour Inspector.

What is the penalty for not registering a shop in Rajasthan?

Section 33 of the 1958 Act, as reproduced in current texts, punishes a breach of section 4 or the hours and holiday rules with a fine of up to ₹250 for a first offence and ₹500 for a repeat. Prosecution needs an Inspector's complaint. Larger risks come from wage and social-security laws that inspections check at the same time.

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.Rajasthan Gazette Extraordinary, 20 August 2025 — notification F.14(11)(3) dated 19 August 2025 exempting establishments with 0–10 workers from registration — Labour Department, Government of Rajasthan (gazette copy via Simpliance) · accessed 12 October 2026
2. 2.Rajasthan Shops and Commercial Establishments (Amendment) Act, 2026 (Act No. 5 of 2026), Rajasthan Gazette Extraordinary, 27 March 2026 — Law (Legislative Drafting) Department, Government of Rajasthan (gazette copy via Simpliance) · accessed 12 October 2026
3. 3.Bill No. 5 of 2026 — Rajasthan Shops and Commercial Establishments (Amendment) Bill, 2026 — Rajasthan Legislative Assembly (via PRS Legislative Research) · accessed 12 October 2026
4. 4.Rajasthan Gazette Extraordinary, 19 June 2026 — Labour Department notification S.O.20 — Labour Department, Government of Rajasthan (gazette copy via Simpliance) · accessed 12 October 2026
5. 5.Labour Department, Rajasthan — Notifications (incl. s.22 women night-work exemption, 4 July 2025, gazette 8 July 2025) — Labour Department, Government of Rajasthan · accessed 12 October 2026
6. 6.Labour Department Management System (LDMS) — Labour Department, Government of Rajasthan · accessed 12 October 2026
7. 7.Rajasthan Shops and Commercial Establishments Act, 1958 — section-wise text — Lawgist · accessed 12 October 2026
8. 8.Rajasthan Shops and Commercial Establishment (Amendment) Rules, 2019 (G.S.R. 43) — TeamLease RegTech · accessed 12 October 2026
9. 9.Rajasthan relaxes registration norms for small establishments — K&S Partners · accessed 12 October 2026