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Karnataka · Remote across India

Business registrations and rules in Karnataka

Karnataka’s rules for a new business combine a shops law dating from 1961, a profession tax revised in April 2025 and a single-window portal launched the same year. They apply equally in Bengaluru, the capital, and in every other district. This page summarises each rule with its source and explains how TrueOrbis supports Karnataka businesses from Delhi, entirely remotely.

At a glance

How we work
Remote
State
Karnataka
Our hours
Mon–Sat, 10:00–19:00 IST
Services here
8

Scope, timeline and fees are agreed in a written proposal before work starts.

Services in Karnataka

Registrations to check when starting out in Karnataka

  1. A GSTIN from the national GST portal, beginning 29, once GST applies to you
  2. Registration under the Karnataka Shops and Commercial Establishments Act, 1961, on the e-Karmika portal
  3. Profession tax under the 1976 state Act, administered by the Commercial Taxes Department
  4. Udyam, where MSME status helps with credit, tenders or buyers
  5. Department approvals through Karnataka Udyog Mitra SWS, for industrial or larger projects

Karnataka’s shops law and the amendment in progress

Commercial establishments in the state come under the Karnataka Shops and Commercial Establishments Act, 1961 (Karnataka Act 8 of 1962), administered by the Labour Department through the Labour Commissioner. Registration is made online on e-Karmika.

A 2026 amendment bill, LA Bill No. 23 of 2026, links the shops law to the central OSH Code, one of the labour codes in force since 21 November 2025. As introduced, it exempts establishments with 10 or more workers that are already registered under the OSH Code, and makes shops registration valid until closure.

We have not confirmed that the bill has received assent or been notified. Until the Labour Department says otherwise, check e-Karmika for the registration rules that apply today.

Profession tax after the April 2025 change

Karnataka levies the tax under the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, administered by the Commercial Taxes Department. Amending Act 33 of 2025, in force from 1 April 2025, set the top slab at ₹200 a month with ₹300 in February, which totals ₹2,500 a year — the ceiling allowed under Article 276(2) of the Constitution.

The department’s online portal could not be reached when we reviewed this page, so it is not linked here. TrueOrbis does not file profession tax; a chartered accountant can register and file for you.

Single window, GST and Udyam in Karnataka

Karnataka Udyog Mitra SWS, launched in February 2025 at sws.investkarnataka.co.in, is the state’s single window for approvals from several departments. The older eBiz portal had an expired security certificate when we checked, so use the new address.

GST for a Karnataka business is applied for online at gst.gov.in, exactly as elsewhere; only the state code 29 marks it as a Karnataka registration.

Udyam involves no Karnataka-specific document or step: one central form, one certificate, the same for every state.

How we work with Karnataka businesses, and the cities we cover

Our Karnataka work is fully remote. Calls are booked within IST working hours, files are exchanged through secure sharing, and filings and configuration happen over screen-share with you present, so nothing is submitted without your sign-off.

Cities we cover in Karnataka: Bengaluru has a dedicated page. Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi and the rest of the state are served remotely in the same way.

Common questions

Is the Karnataka shops amendment linked to the OSH Code already in force?

We could not confirm it. LA Bill No. 23 of 2026 would exempt establishments with 10 or more workers already registered under the OSH Code, but its assent and notification were not verified when this page was reviewed. Check e-Karmika or the Labour Department.

What is the most profession tax an employee in Karnataka pays in a year?

₹2,500. Since 1 April 2025 the top slab is ₹200 a month and ₹300 in February, under Karnataka Act 33 of 2025.

Where do I apply for state approvals in Karnataka?

Through Karnataka Udyog Mitra SWS, the single window launched in February 2025. Shops registration has its own route on e-Karmika, and GST and Udyam use their national portals.

Does TrueOrbis have anyone on the ground in Bengaluru?

No. We work with Bengaluru and the rest of Karnataka remotely by video, phone, WhatsApp and remote session. On-site visits are offered only in Delhi NCR.

Official sources

Rules and portals change. Always confirm the current position on the official source before you apply.

Last reviewed:

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