Jaipur – The Government of Rajasthan has issued a significant notification (No. F.14(11)(3)Registration Exemption/Labour/Law/2025Part/002067) providing a major relief for micro and small enterprises across the state. In a move aimed at bolstering the "Ease of Doing Business" environment, the state government has officially exempted shops and commercial establishments with up to 10 workers from mandatory registration under the stringent Rajasthan Shops and Establishments Rules, 1959.
This is a pivotal update that will streamline operations, reduce compliance burdens, and save valuable resources for thousands of small business owners.
Key Takeaway: Simplified Compliance for Small Businesses
Effective from the date of the notification (August 20, 2025), eligible establishments are no longer required to navigate the formal registration process with the Labour Department. This change aligns with the state’s broader initiative to foster a more informal-friendly regulatory landscape for micro-employers, allowing them to focus on growth and business development rather than administrative formalities.
Detailed Notification Overview
For clarity, we have summarized the core changes and their implications in the table below:
| Feature | Previous Requirement (for all establishments) | New Requirement (for establishments with 0-10 workers) | Key Impact |
| Registration Status | Mandatory registration under the Act and Rules, often with associated fees. | Exempted from mandatory registration under the Act. | Significant reduction in initial compliance burden and costs. |
| Governing Rules | Governed by the Rajasthan Shops and Commercial Establishments Act, 1958 & Rules, 1959. | Remains under the general purview of the Act for other provisions. | Focus shifts from registration to adherence to core labour laws. |
| Administrative Process | Required physical or online submission of Form A and documentation to the prescribed authority. | No application to the prescribed authority is needed for registration. | Streamlined startup and operational processes for small businesses. |
| Applicable Notification | N/A | Government of Rajasthan Vide No. F.14(11)(3)Registration Exemption/Labour/Law/2025Part/002067. | Formal legal basis for the exemption. |
Important Caveat: While registration is now exempt, this does not grant a free pass from other essential labour obligations. Businesses must still adhere to fundamental labour laws concerning minimum wages, prescribed working hours, weekly offs, employee safety standards, and welfare measures.
How SGC Services Can Help You Navigate These Changes
Staying on top of frequent regulatory updates can be challenging, especially when rules vary by state and employee count. SGC Services is your trusted partner in ensuring seamless compliance with all labour laws and HR regulations.
Our team of compliance experts at SGC Services can help your business:
- Verify Eligibility: We can confirm if your establishment qualifies for this new exemption and ensure all other applicable laws are being met.
- Payroll Management: Our comprehensive payroll services ensure you are compliant with wage laws, overtime payments, and leave entitlements, even without the registration certificate.
- HR Compliance Audits: We conduct thorough audits to ensure you maintain the necessary records (e.g., attendance, wages registers) and adhere to all safety and welfare standards, mitigating the risk of penalties during inspections.
- Advisory Services: We provide ongoing expert advice on state-specific rules and amendments, allowing you to focus on your core business growth.
This notification from the Government of Rajasthan is a welcome step towards supporting small businesses. It simplifies entry into the market and reduces bureaucratic hurdles. However, maintaining compliance with the spirit and letter of all labour laws remains a critical responsibility for all employers.
Don’t let regulatory changes leave your business exposed to risk.
Contact SGC Services today for a consultation to ensure your business is fully compliant with the latest Rajasthan labour laws. Our experts will help you navigate the new landscape with confidence and ease.
For more information on the notification and how it impacts your specific business, reach out to the SGC Services team via our website or call us directly.
For more details please refer the attached notification.
Thank you for reading. We hope the information was helpful to you!
Team SGC Services
NOIDA | DELHI | MUMBAI | BANGALORE
#TeamSGC #SGCSERVICES #PayrollOutsourcing
Visit us: www.sgcservices.com
Exemption Notification for Rajasthan SE Registration.pdf
Discover more from Payroll and Compliance Blog
Subscribe to get the latest posts sent to your email.
