What is Gumasta License?
The Gumasta license is a business license issued by the Maharashtra government to individuals or businesses who wish to operate in the state. The Shop and Establishment Act is called Gumasta in the regional language in Maharashtra.
It is governed by the Municipal Corporation of Mumbai under the Maharashtra Shops and Establishment Act. The license is mandatory for any business wishing to operate in Maharashtra, and it provides a number of benefits, including tax exemptions and permission to carry out commercial activities.
Who needs to obtain Gumasta License?
Gumasta License is mandatory for business owners, entrepreneurs, self-employed professionals, public and private limited companies, sole proprietorship, partnerships and LLPs that want to open physical shops, hotels or commercial places in Maharashtra.
All businesses with less than 9 employees (Intimation Certificate will be provided) OR businesses with 10 or more workers (Gumasta Certificate validated by authority) in a shop or establishment require a Gumasta License.
This certificate or license helps in the regulation of the benefits of employees in the condition or situation they work and aspects regarding payment and rules of their employment. This certificate or license helps in the regulation of the benefits of employees in the condition or situation they work and aspects regarding payment and rules of their employment.
Objectives of Gumasta License:
- Provide statutory obligation and rights to employees and employers in the unorganized sector of employment, i.e., shops and establishments.
- Regulate the conditions of work and employment in shops, commercial establishments, residential hotels, restaurants, eating houses, theaters, and other places of public entertainment.
Advantages of Gumasta License:
- Avail tax subsidies from the Maharashtra State Government
- Acts as a proof of legal entity that provides the right to conduct business in Maharashtra
- Several banks accept Gumasta license as an identity proof to open business bank account
Documents required for Gumasta License:
i) For Sole Proprietorship
- Proof for the business premises
- PAN Card details
- Aadhar Card Information
- If its a Charitable Trust, then the requirement of a registration certificate
- Application Letter
- Photo of the Business Owner
- Address Proof
- Authority Letter from Maharashtra Municipal Corporation
ii) For Private Limited Company
- Incorporation Certificate
- AOA (Articles of Association)
- MOA (Memorandum of Association)
- Address Proof and ID Proof of the Director of a Company
iii) For Partnership Firm
- PAN details for Partnership Firm
- Partners personal information and Address details
- Partnership Deed
- Application form, with the prescribed government fees
iv) Documents related to Shop or Establishment
- Name of the establishment
- Name of the employer and the manager, if applicable
- Address proof of Shop or Establishment
- Shop’s or Establishment’s Category
- Photo of shop with signboard
- Photo of owner with shop
Steps to Register for Gumasta License:
- Login to the official website of the Maharashtra Government Portal.
- Select whether you want to register as an individual or an organization.
- Complete the OTP verification and gain site access by providing your mobile number and email.
- Log in with your username and password to access services.
- Choose New Shop and Establishment Registration.
- Fill out the online form and submit it by selecting Registration – Form A.
- On the platform, upload all of the relevant documentation.
- Once the above step is completed, complete the online payment process.
Cancellation of Gumasta Certificate/License:
If an applicant or existing certificate holder wants to cancel the license, he/she shall –
- Submit a notice that should contain his/her statement, as he/she wants to cancel license or registration.
- Secondly, if the employer fails to submit his/her statement along with documents within 10 days from the date of receipt of the notice, his/her registration may get cancelled.
Fees and Penalty:
Any business owner who fails to provide the necessary registration documents or runs an establishment without a license is subject to heavy penalties. Similarly, if their Gumasta License has expired and the establishment owner hasn’t renewed the license, a late fee of 50% of the total renewal fee will be charged.
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Note: This Post was last updated on January 31, 2023
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation i.e. January 31, 2023. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, We assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. We assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL WE SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.
