Shop and Establishment Registration in Telangana (2026): Fees, Annual Renewal, Working Hours and Penalties

Every shop, office, restaurant, clinic and showroom in Telangana needs a registration under the Telangana Shops and Establishments Act, 1988, and unlike most States, Telangana still makes you pay for it every year. This guide is for shop owners, startup founders and accountants in Hyderabad, Warangal, Karimnagar and the rest of the State. It explains who must register and by when, the fee slabs, the 1 December renewal deadline and its penalties, the July 2025 order that lets offices work ten-hour days, the 24x7 permission, leave and wage rules, penalties, and a worked example for a Hyderabad restaurant. If you also engage contract labour or run a factory, our wider labour licence guide for Telangana covers those registrations.

Quick answer

Under the Telangana Shops and Establishments Act, 1988, every shop and establishment must register within 30 days of starting work, online through the Labour Department. The fee depends on headcount, from ₹100 (no employees) and ₹500 (up to five). A certificate is valid 31 December of the year of issue (renewable yearly), so you renew by 1 December (30 days before expiry) by paying the same fee again.

• Provisional registration within 24 business hours; deemed granted if no adverse order in 30 days

• Late renewal: 25% of the fee extra in December, 50% of the fee from 1 January

• Shops: 8 hours a day; offices may work 10 hours a day under a 2025 order, both within 48 a week

• Report changes or closure within 15 days

What the Telangana Shops Act covers

The Telangana Shops and Establishments Act, 1988 (Act No. 20 of 1988) was inherited from Andhra Pradesh when Telangana was formed in 2014 and adapted as a Telangana law. It applies to "establishments", a term that covers shops, commercial establishments, restaurants and eating houses, hotels, theatres and places of public amusement. A shop is any premises where goods are sold or services are provided to customers. A commercial establishment covers offices of a trade, business or profession, banks, insurance and broking offices, IT and consultancy offices, clinics, coaching centres and similar places that are not factories.

The Labour Department's FAQ is clear that every employer or owner must register, whatever the trade and even when the owner works alone. The department's public dashboard shows more than 11 lakh registrations under the Act, along with several lakh annual fee payments, which gives a sense of how routine it is.

The authority is the Labour Department, through the Inspectors appointed for each area under the Commissioner of Labour in Hyderabad. This is separate from the municipal trade licence. In Hyderabad, the GHMC trade licence is about the premises and the trade, priced per square foot; the shops registration is about employment and priced per head. Most businesses need both, and both renew on a calendar-year cycle.

Who must register and by when

Within 30 days of starting work. Section 3 requires the employer of every new establishment to send the Inspector a statement with the prescribed particulars and fee within 30 days of the date the establishment starts work. Under the 1990 Rules the statement is Form I. The Inspector registers the establishment and issues a certificate, which must be displayed prominently at the premises.

Provisional and deemed registration. Two later changes speed things up. Act No. 28 of 2017 provides that, once you upload the application with the required enclosures, a provisional registration is granted within 24 business hours and stays valid until a final order. A 2016 amendment provides that if the Inspector passes no adverse order within 30 days of the statement, registration is deemed granted. The 2017 Act also says no inspection is needed before registration. The department's dashboard lists registration as a real-time service.

Count everyone. The fee slab depends on the number of persons employed. Count permanent, temporary, part-time and trainee staff, and people supplied by agencies such as guards and housekeeping. The department can cross-check your headcount against PF and ESIC filings.

One registration per establishment. Each branch, outlet or separate office needs its own registration. A restaurant group with three outlets in Hyderabad registers three times and renews three times.

Home businesses and co-working seats. A consultancy run from a home office or a co-working desk is still an establishment if business is carried on there. The lowest slab is small, and banks and payment gateways commonly ask for the certificate.

Fees by number of employees

The fee is set in the Schedule to rule 4 of the Telangana Shops and Establishments Rules, 1990, and the same amount applies to a new registration and to each yearly renewal. The Labour Department does not publish the schedule on its website; the slabs below are as reproduced by payroll references. The portal calculates the exact amount from your headcount, so treat the table as a guide.

The department's dashboard reports an average fee of ₹500 across registrations, which fits a State where most establishments are small. If you hold the 24x7 permission described below, the ₹10,000 a year for that is separate and in addition.

If an agent files for you, whatever they charge beyond the slab fee and late penalties is their own service fee.

How to apply online

Applications are made online through the Labour Department's portal, labour.telangana.gov.in, where you create an employer login and choose the Shops and Establishments registration service. The FAQ also mentions payment through MeeSeva centres for those who prefer to apply with help.

Shop and establishment registration in Telangana

1. 1

   Create an employer login

   Register on the Labour Department portal with your mobile number and email. The same login is used for renewal, amendments and closure.

   Open the Labour Department portal
2. 2

   Fill in Form I

   Enter the establishment's name, address, category (shop, commercial establishment, restaurant, hotel or theatre), nature of business, date of commencement, employer and manager details, and the number of employees by gender.

3. 3

   Upload the enclosures

   Upload identity and address proof of the employer, proof of the premises, a photo of the establishment and, for firms and companies, the partnership deed or incorporation documents.

   Tip: Upload everything at once: the 24-hour provisional registration is triggered only by a complete application.

4. 4

   Pay the fee online

   The portal calculates the slab fee from your headcount. Pay online and keep the receipt.

5. 5

   Download the certificate

   A provisional registration is issued within 24 business hours; the final certificate follows, or is deemed granted after 30 days without an adverse order. Display it at the premises.

Documents to keep ready

• Aadhaar and PAN of the proprietor, or of the partners or directors
• Proof of the premises: rent agreement or sale deed plus a recent property-tax or electricity bill
• Owner's no-objection letter if the premises are rented from a relative or third party
• Photo of the establishment showing the name board
• Partnership deed, LLP agreement or certificate of incorporation, where relevant
• Headcount by gender, including agency and part-time staff

Validity, the 1 December renewal and late fees

Telangana is one of the few States that still runs a yearly cycle. Section 3(3) says a registration certificate is valid 31 December of the year of issue (renewable yearly). Section 4 lets the Inspector renew it for one year or for a number of years at a time, and the renewal application must reach the Inspector at least 30 days before expiry; the department's FAQ puts the deadline at 1 December each year. The renewal fee is the same as the registration fee for your slab.

Late renewal. Under the Rules, renewing on or after 2 December but before 31 December costs an extra 25% of the fee; renewing from 1 January costs an extra 50% of the fee. The department can waive the penalty for good reason, but do not plan around it. While a renewal application is pending, section 4(3) lets you act as if renewed, and if no adverse order is passed within 30 days, it is deemed renewed.

A registration taken in November. Because validity runs to 31 December, a business that registers in November will be renewing within weeks. If you open late in the year, consider renewing for the following year at the same time.

Changes and closure. Any change in the particulars on your statement, such as address, name, manager, partners or a move to a higher headcount slab, must be intimated within 15 days, with the fee prescribed for the change. On closing, intimate the Inspector in writing within 15 days; the establishment is removed from the register and the certificate cancelled. If you skip this, the renewal demand keeps coming.

The yearly cycle for a Telangana shop registration

Within 30 days of opening

Apply in Form I; provisional registration within 24 business hours

1 December

Renewal application and fee due for the next calendar year

2–31 December

Late renewal with 25% of the fee penalty

31 December

Certificate expires unless renewed

From 1 January

Late renewal with 50% of the fee penalty

Working hours, overtime and the 2025 ten-hour order

Shops. Section 9 limits shop employees to 8 hours a day and 48 hours a week. Overtime is allowed on payment of overtime wages, up to six hours a week, plus up to 24 hours a year for stock-taking and accounts. Section 10 requires a rest interval of at least one hour before anyone works more than five hours, and section 11 caps the spread-over at 12 hours.

Commercial establishments other than shops. Sections 16 and 17 set the same eight-hour day and one-hour rest after five hours. But G.O.Rt.No. 282 of 5 July 2025, published in the Telangana Gazette on 8 July 2025, exempts all commercial establishments other than shops from those two sections, on conditions:

• daily hours may go up to 10 hours, with weekly hours at 48 and overtime wages for work beyond 48;
• no one works more than six hours without a rest interval of at least 30 minutes;
• work and rest together cannot spread over more than 12 hours a day;
• overtime beyond 48 hours a week is capped at 144 hours in a quarter;
• the Government can revoke the exemption at any time without notice if the conditions are broken.

So an IT office, agency or clinic can run four ten-hour days and an eight-hour fifth day; a retail shop cannot.

Overtime pay. Section 37 sets overtime wages at twice the ordinary rate. Where normal hours are below eight a day, hours up to eight a day and 48 a week are paid at the ordinary rate and anything beyond at double.

24x7 opening. Section 7 lets the Government fix opening and closing hours. G.O.Ms.No. 4 of 4 April 2023 allows shops and establishments to stay open 24 hours on all days, on payment of ₹10,000 a year per store and conditions that include identity cards for staff, a weekly off and fixed weekly hours for every employee, overtime wages, compensatory holidays with wages for work on national and festival holidays, women's consent with safety and transport for night work, proper records and returns, and compliance with police rules.

Women and young persons. Section 23 says women may not be required or allowed to work before 6 am or after 8.30 pm unless the 24x7 permission and its conditions apply. Young persons may work no more than seven hours a day and 42 a week, never overtime, and not before 6 am or after 7 pm.

Hours in Telangana — shops versus offices

Rule	Shops (s.9–11)	Commercial establishments under G.O.Rt.282
Daily hours	8 hours	10 hours
Weekly hours	48	48
Work before a break	5 hours, then 1 hour rest	6 hours, then 30 minutes
Spread-over	12 hours	12 hours
Overtime cap	6 hours a week	144 hours in a quarter
Overtime rate	2 × ordinary wages	2 × ordinary wages

Daily hours

Shops (s.9–11)

8 hours

Commercial establishments under G.O.Rt.282

10 hours

Weekly hours

Shops (s.9–11)

48

Commercial establishments under G.O.Rt.282

48

Work before a break

Shops (s.9–11)

5 hours, then 1 hour rest

Commercial establishments under G.O.Rt.282

6 hours, then 30 minutes

Spread-over

Shops (s.9–11)

12 hours

Commercial establishments under G.O.Rt.282

12 hours

Overtime cap

Shops (s.9–11)

6 hours a week

Commercial establishments under G.O.Rt.282

144 hours in a quarter

Overtime rate

Shops (s.9–11)

2 × ordinary wages

Commercial establishments under G.O.Rt.282

2 × ordinary wages

Leave, holidays and wages

Leave with wages. An employee who has worked 240 days or more in a continuous twelve-month period earns 15 days of leave with wages for the next twelve months. It can be accumulated up to 60 days, and every employee may encash eight days a year, paid within a week of asking. Leave must be applied for at least seven working days ahead and can be taken in up to three instalments a year.

Sick and casual leave. On top of that, each employee gets up to 12 days of sick leave and 12 days of casual leave with wages in every twelve months of service. There is also a one-time special casual leave of up to six days after a family-planning operation.

Weekly holiday and festival holidays. Every employee gets a weekly holiday, and the State notifies national and festival holidays from time to time. Work on those days needs a compensatory holiday with wages, particularly for 24x7 establishments.

Wages. Wages must be paid before the end of the fifth day after the wage period, which for monthly pay means by the 5th of the next month. The FAQ also lists the registers to keep: employment, wages (Form XXIII), leave, advances and a bound visit book for inspectors.

Worked example: a Hyderabad restaurant

Reddy's Kitchen opens in Kukatpally, Hyderabad, on 1 March with 14 staff of its own (cooks, servers and cashiers) and two agency security guards. Headcount is 16.

Registration. The owner applies in Form I on the Labour Department portal by 31 March (30 days) and pays the 11-to-20 slab fee of ₹2,000. The provisional registration arrives the next day; the final certificate follows.

Renewal. By 1 December she renews for the following calendar year and pays ₹2,000 again. Had she missed it and paid on 10 January, the late penalty would have been 50% of the fee, or ₹1,000 on top.

Late-night service. To serve until 2 am on weekends she applies for the 24x7 permission, pays ₹10,000 a year, issues staff ID cards, rotates weekly offs, and arranges drop-home transport and written consent for the two women cashiers on the late shift.

Overtime. As a restaurant counts as a shop-type establishment rather than an office, the eight-hour day applies. A cashier — a skilled category under G.O.Ms.No.6 — on the Zone I minimum of ₹18,500 a month works 52 hours in a festival week, four over the limit. At 26 days of eight hours, the hourly rate is about ₹89, so overtime at double is about ₹178 an hour, roughly ₹712 for the week, within the six-hour weekly overtime cap.

Other compliance. She deducts Telangana professional tax from salaries above ₹15,000, registers for ESIC, pays at least the Telangana minimum wages for hotels and restaurants, holds the GHMC trade licence and an FSSAI licence, and sets up an Internal Committee under the POSH Act.

Penalties and compounding

Fines. Section 61(2) punishes breaches of the registration, renewal, hours, leave, wage and most other sections with a fine up to ₹100 for a first offence, ₹250 to ₹500 for a second, and for a third or later offence up to three months' imprisonment with a fine of ₹500 to ₹1,000. An employer who does not hold a valid registration faces a further fine up to ₹250 a day while the breach continues. A false statement in the registration application can attract up to ₹100.

Compounding. Section 62 lets officers authorised by the Chief Inspector compound certain offences, including those under the registration and renewal sections, for up to ₹100 per violation.

In practice. The fines in the Act are low, but the late-renewal penalty is automatic, inspectors look at registers and wage records, and an expired certificate causes trouble with banks, tenders and payment gateways.

Common mistakes and how to fix them

Missing the 1 December renewal. The most common and most avoidable cost. Renew for several years at once if the portal offers it.

Registering one outlet for the whole business. Each establishment registers and renews separately.

Applying the ten-hour order to a shop. G.O.Rt.No. 282 covers commercial establishments other than shops. Retail stores and restaurants that behave like shops should keep to eight-hour days or pay overtime.

Running late without the 24x7 permission. Opening beyond notified hours without the G.O.Ms.No. 4 permission and fee is a breach, and keeping women staff after 8.30 pm without it is a separate one.

Not reporting a move or headcount change within 15 days. A move to a higher slab means a higher renewal fee; a new address needs an amendment.

Ignoring the Labour Codes. The four Labour Codes came into force on 21 November 2025. Telangana published draft rules under the OSH Code in May 2026, and the Code has its own registration for establishments with 10 or more workers. Until the final rules arrive, keep your Shops Act registration current; watch our Labour Codes guide for the switch.

Official links

• Labour Department, Telangana — online servicesRegistration, renewal, amendments, closure
• Labour Department FAQsRegistration deadline, renewal date, hours, leave
• Labour Department public dashboardRegistrations and annual fee payments
• G.O.Rt.No. 282 of 5 July 2025 (PDF copy)10-hour day for commercial establishments

What to do next

Register every establishment within 30 days of opening, put 15 November in your calendar for the yearly renewal, and decide whether you need the 24x7 permission before you change your hours. Then set up attendance, overtime and leave registers and check pay against the Telangana minimum wages. Our salary slip generator shows overtime and deductions clearly, and the hourly rate calculator helps you price overtime hours. If you have not yet registered for GST or Udyam, your shops certificate helps as supporting proof of the business address.

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 Telangana?

Yes. Section 3 of the Telangana Shops and Establishments Act, 1988 requires every employer of a shop or establishment to apply within 30 days of starting work, whatever the trade and even if the owner works alone. The application is made online on the Labour Department's portal, and a provisional registration is granted within 24 business hours of a complete upload.

What is the shop and establishment registration fee in Telangana?

The fee depends on the number of people employed and is the same for a new registration and the yearly renewal. As reproduced by payroll references, it starts at ₹100 with no employees, ₹500 for up to five and ₹1,000 for six to ten, rising to ₹10,000 for 51 to 100. The portal calculates the exact amount.

Does the Telangana shop licence need renewal every year?

Yes, unless you renew for several years at once. A certificate is valid 31 December of the year of issue (renewable yearly), and the renewal application with the fee is due by 1 December (30 days before expiry). Paying late costs 25% of the fee extra in December and 50% of the fee from 1 January.

Can offices in Telangana make staff work 10 hours a day?

Commercial establishments other than shops can, under G.O.Rt.No. 282 of 5 July 2025: up to 10 hours a day within 48 hours a week, a 30-minute break after six hours, a 12-hour spread-over and overtime up to 144 hours in a quarter. Shops remain on the Act's 8 hours day.

Can shops in Telangana stay open 24 hours?

Yes, with permission under G.O.Ms.No. 4 of April 2023, on payment of ₹10,000 a year per store and conditions including ID cards for staff, weekly offs, overtime wages, compensatory holidays, consent, safety and transport for women working at night, and proper records.

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

Under section 61, a first offence carries a fine up to ₹100, a second ₹250 to ₹500, and a third or later offence up to three months' imprisonment and ₹500 to ₹1,000. Running without a valid registration adds a continuing fine up to ₹250 a day. Late renewal also attracts the 25% or 50% penalty.

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.Labour Department, Telangana — Frequently Asked Questions — Labour Department, Government of Telangana · accessed 12 October 2026
2. 2.Labour Department, Telangana — public dashboard — Labour Department, Government of Telangana · accessed 12 October 2026
3. 3.Telangana Shops and Establishments Act, 1988 (Act No. 20 of 1988), as amended — Government of Telangana (copy hosted by greytHR) · accessed 12 October 2026
4. 4.G.O.Rt.No. 282, Labour, Employment, Training and Factories Department, 5 July 2025 — Government of Telangana (copy hosted by Bombay Chamber of Commerce) · accessed 12 October 2026
5. 5.Telangana Shops and Establishments Rules, 1990 — LegitQuest · accessed 12 October 2026
6. 6.Telangana shop and establishment registration — fee by headcount — CalcGuru · accessed 12 October 2026
7. 7.Telangana issued the conditions for shops operating 24/7 — TeamLease RegTech · accessed 12 October 2026
8. 8.Telangana extends daily working hours for commercial establishments — DLA Piper · accessed 12 October 2026