A software services company in Hyderabad set up its second office in January 2026 with 12 employees. The founders assumed the parent company’s existing registration covered the new premises. Three months later, a routine labour inspection revealed that the new establishment had no separate registration under the Telangana Shops and Establishment Act. Consequently, the fine was Rs. 10,000. More consequentially, the inspector also cited missing wage registers and the absence of a working hours notice at the premises, which are separate violations under the Act. What started as a straightforward expansion, therefore, became a two-week compliance remediation exercise.
The Telangana Shops and Establishment Act, 1988 governs working conditions, employment terms, and employer obligations for every commercial establishment in the state. Specifically, it applies to shops, offices, hotels, restaurants, IT companies, theatres, and any place where trade, business, or services happen. Each new establishment location requires its own registration, regardless of how many other branches the same company has already registered.
This guide covers registration requirements, the fee structure, working hours rules, leave entitlements, annual return obligations, penalty structure, and what Hyderabad and Telangana employers must maintain at their premises in 2026 to stay inspection-ready.
Operating in Telangana and not sure your establishment registration and compliance records are in order? Futurex handles Shops and Establishment registration, renewal, and ongoing compliance for businesses across Telangana and India. First consultation is free.
Who Must Register Under the Telangana Shops and Establishment Act?
The Telangana Shops and Establishment Act applies to every commercial establishment in notified areas across the state. Specifically, this includes retail shops, offices, IT companies, BPOs, hotels, restaurants, cafes, theatres, cinema halls, and any place providing services to customers. Unlike some other states where small establishments with zero employees may be exempt, Telangana requires registration even for a sole proprietor operating alone from a commercial premise.
Notably, the Act applies to each physical location separately. A company with five offices across Hyderabad, Warangal, and Nizamabad needs five separate registrations, one for each establishment. Moving to a new premises, therefore, requires fresh registration at the new address rather than a simple address change.
⚠ Register within 30 days of opening: Section 3 of the Telangana Shops and Establishment Act requires every new establishment to register within 30 days of commencement of work. Operating beyond this window without registration is a punishable offence. The 30-day clock runs from when business operations begin, not from when you signed the lease or fitted out the premises.
How to Register Under the Telangana Shops and Establishment Act
Registration under the Telangana Shops and Establishment Act is fully digital through the Telangana Labour Department’s online portal at labour.telangana.gov.in. Importantly, in-person applications at the Labour Office are no longer the primary route.
Step-by-Step Registration Process
Step 1: Visit labour.telangana.gov.in and navigate to the Shops and Establishments registration section. Create an account using your mobile number and Aadhaar details.
Step 2: Fill the application form with employer name, establishment name, address, nature of business, number of employees, and date of commencement. Next, Step 3: upload supporting documents including proof of establishment address (electricity bill or rent agreement), identity proof of the proprietor or authorised signatory, and PAN of the business entity.
Step 4: Pay the applicable registration fee online based on employee strength. The next section covers the full fee structure.
Step 5: After verification by the local Labour Officer, the Labour Officer issues the Registration Certificate in Form B digitally. Display this certificate at your premises at all times. The certificate stays valid for five years unless the Act specifies otherwise.
Telangana Shops and Establishment Act: Registration Fee Structure
The registration fee under the Telangana Shops and Establishment Act depends on the number of employees at the time of registration. An annual maintenance fee also applies each year between 1 November and 1 December to keep the registration active.
| Number of Employees | Registration Fee (Rs.) |
|---|---|
| No employees (proprietor only) | Rs. 100 |
| 1 to 5 employees | Rs. 200 |
| 6 to 10 employees | Rs. 500 |
| 11 to 25 employees | Rs. 1,000 |
| 26 to 50 employees | Rs. 2,000 |
| 51 to 100 employees | Rs. 5,000 |
| Above 100 employees | Rs. 10,000 plus Rs. 5,000 for every additional 50 persons |
Notably, the annual fee payment window runs from 1 November to 1 December each year. Missing this window does not automatically cancel the registration but does make the establishment non-compliant and liable to penalties during any inspection that occurs after the deadline.
Working Hours Under the Telangana Shops and Establishment Act
The Telangana Shops and Establishment Act sets specific limits on working hours that employers must follow. Violations of these limits are among the most commonly cited findings during labour inspections in Telangana.
Standard Working Hours
For shops, the Act permits a maximum of 9 hours per day and 48 hours per week. For establishments other than shops such as offices and commercial premises, the same limits apply. No employee can work more than 5 continuous hours without a rest interval of at least 30 minutes. The spread over of working hours including rest intervals cannot exceed 11 hours in any one day.
Specifically, in 2026, Telangana extended permissions for IT and ITES companies to operate 24 hours in notified areas, subject to the 9-hour daily limit per employee and mandatory weekly off provisions. However, this permission does not override the individual employee daily limit. In practice, staggered shifts covering round-the-clock operations are permissible but each employee’s daily hours must stay within the prescribed limit.
Overtime Rules
Overtime under the Telangana Shops and Establishment Act attracts double the ordinary wage rate. Employers must maintain an overtime register showing hours worked beyond the daily limit for each employee. This register is specifically checked during inspections. Additionally, employers cannot require overtime for more than 50 hours in a quarter without the employee’s consent.
Leave Entitlements Under the Act
The Act prescribes mandatory leave entitlements for all employees in registered establishments. Importantly, these entitlements apply regardless of what the employment contract says. A contract cannot provide less than what the Act mandates.
| Leave Type | Entitlement |
|---|---|
| Earned leave (Privilege leave) | 1 day for every 20 days worked |
| Casual leave | 12 days per year |
| Sick leave | 12 days per year |
| Weekly off | 1 day per week mandatory |
Annual Return and Records Under the Telangana Shops and Establishment Act
Specifically, every registered establishment must file an Integrated Annual Return in Form I by 30 April each year. The annual return covers details of employee strength, wages paid, leave taken, and other prescribed particulars for the previous year. Failure to file by the deadline attracts penalties.
Mandatory Registers and Displays
Additionally, beyond registration and annual returns, every establishment must maintain the following at its premises at all times. Inspectors specifically check these during visits and treat missing or incomplete records as separate violations from the main registration status.
Specifically, maintain an attendance register showing daily attendance, arrival, and departure times for each employee, a wages register showing amounts paid and deductions, and an overtime register for any hours worked beyond the daily limit. Additionally, display the establishment name board in both Telugu and English with Telugu text prominently placed, post the registration certificate visibly within the premises, and display the working hours notice showing opening and closing times, rest interval, and weekly off day.
Additionally, ensure minimum wages for all worker categories reflect the current Telangana notification effective from January 2026. Compliance with minimum wages is a separate obligation under the Minimum Wages Act but labour inspectors under the Telangana Shops and Establishment Act also check wage registers against the notified rates during the same visit.
Penalties for Non-Compliance
The penalty structure under the Telangana Shops and Establishment Act is specific and applies personally to the employer or the person responsible for managing the establishment.
| Violation | Penalty |
|---|---|
| Failure to register within 30 days | Fine up to Rs. 10,000 for first offence |
| Subsequent offences | Fine up to Rs. 20,000 or imprisonment up to 3 months |
| Non-maintenance of registers | Fine under the Act and triggered re-inspection |
| Obstructing a Labour Inspector | Penalties under Section 115 of the OSH Code, 2020 |
How Futurex Handles Telangana Shops and Establishment Act Compliance
Futurex manages Telangana Shops and Establishment Act compliance for businesses operating across Hyderabad and other Telangana districts. Specifically, this means handling the initial registration, filing the annual return by 30 April, managing the annual fee payment between November and December, maintaining all prescribed registers, and advising on working hours compliance for IT and non-IT establishments.
For companies expanding into Telangana for the first time, consequently,, Futurex handles Shops Act registration alongside PF, ESIC, and professional tax registration so that all compliance is in place before operations begin. For established businesses with compliance gaps, the team conducts an inspection-readiness audit and corrects all outstanding issues before the next inspection. Contact the team at futurexsolutions.com/contact-us to start with a free compliance check.
Frequently Asked Questions About the Telangana Shops and Establishment Act
Who needs to register under the Telangana Shops and Establishment Act?
Every commercial establishment operating in notified areas of Telangana must register under the Telangana Shops and Establishment Act, 1988. This covers shops, offices, IT companies, hotels, restaurants, theatres, and any premises where trade, business, or services take place. Importantly, each physical location requires its own separate registration. Consequently, a company with multiple offices in Hyderabad needs separate registration for each office.
Within how many days must a new establishment register under the Telangana Act?
Under Section 3 of the Telangana Shops and Establishment Act, every new establishment must register within 30 days of commencing operations. The 30-day window runs from the date business activities start, not from when the lease or fit-out completes. Operating beyond 30 days without registration is a punishable offence with a fine of up to Rs. 10,000 for the first instance.
What are the working hours under the Telangana Shops and Establishment Act?
The Telangana Shops and Establishment Act permits a maximum of 9 hours per day and 48 hours per week for employees. A rest interval of at least 30 minutes is mandatory after 5 continuous hours of work. The total spread over including rest cannot exceed 11 hours per day. Overtime beyond these limits attracts double the ordinary wage rate. Record it in the overtime register maintained at the premises.
When is the annual return due under the Telangana Shops and Establishment Act?
File the Integrated Annual Return in Form I by 30 April each year covering the previous calendar year. Additionally, the annual maintenance fee must be paid between 1 November and 1 December to keep the registration active for the following year. Missing either deadline makes the establishment non-compliant and liable to penalties during any subsequent inspection.
Does the Telangana Shops and Establishment Act apply to IT companies?
Yes. The Telangana Shops and Establishment Act applies to IT and ITES companies operating in Telangana. In 2026, Telangana permits IT companies in notified areas to operate 24 hours, but each employee’s daily working limit of 9 hours and weekly off entitlements still apply. IT companies that operate round-the-clock must use staggered shifts and maintain attendance and overtime registers for all employees at each location.
What are the penalties under the Telangana Shops and Establishment Act?
Failure to register under the Telangana Shops and Establishment Act attracts a fine of up to Rs. 10,000 for the first offence. Subsequent violations carry fines of up to Rs. 20,000 or imprisonment of up to 3 months. Non-maintenance of prescribed registers such as attendance, wages, and overtime records results in separate fines and triggers a re-inspection. The Labour Department can also issue closure orders for continued non-compliance.
Is Your Telangana Establishment Inspection-Ready?
Registration, annual return, fee payment, wage registers, working hours notices: the Telangana Shops and Establishment Act has multiple compliance touchpoints that each carry their own penalty. Futurex Management Solutions handles complete Shops Act compliance for businesses across Hyderabad and Telangana. First consultation is free. No commitment required.