To start any type of business in Maharashtra, entrepreneurs require Gumasta License. This license is governed by Municipal Corporation of Mumbai under the Maharashtra Shops and Establishment Act, 2017. Gumasta License provides the authority to entrepreneurs to start their businesses at particular place, area or location that exists in Maharashtra, India.
Who needs to obtain Gumasta License?
Gumasta License is required to be obtained by 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. Gumasta License is necessary for all businesses employing 10 or more workers in a shop or establishment. 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 license or certificate is the basic or mandatory requirement to get recognized by all the banks and NBFCs working for people in Maharashtra.
Components of Gumasta License or Registration
- Name and year of establishment
- Nature of business
- Name of the employer
- Number of workers or employees
- Other related details and information
Steps to Register for Gumasta License
Step 1: The applicant can visit the official website by clicking here http://www.mcgm.gov.in
Step 2: Application form under Shops and Establishment Section can be filled and submitted online
Step 3: After filling the application form, a challan number will be generated and UTN number can be obtained after the payment of required fees
Step 4: Required documents are to be submitted along with the payment to get a print of application form
Step 5: All the documents are required to be submitted to the Shop License Department of Municipal Corporation of Mumbai
Step 6: Once all the documents are verified by the concerned officer, Shop License will be provided to the applicant within time duration of 7-10 working days or with some more delay
Step 7: If required, officer shall visit the location of shop and establishment
Note: The registration application for Gumasta License has to be submitted within 30 days of the start of a business to the respective area officer.
Sole Proprietorship, Partnership, Private Company (As applicable)
- Application Form
- Passport-sized photographs
- Identity Proofs – Aadhar card, PAN Card, Passport
- Address proof – Voter’s ID, Passport, Utility Bills, such as water and electricity bills
- Partnership Deed
- Memorandum of Association (MoA) and Article of Association (AoA)
- PAN number of Partnership Firm
- Certificate of business incorporation
- Partner’s and Company Director’s ID proof – Identity & Address
- Proof of Property’s ownership
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
License Renewal, Fees & Penalty
Gumasta license to be used by people of Maharashtra is issued only once and the validity of this certificate or license is for the lifetime. However, the license fees and charges may vary from state to state and also shall depend on the Government’s policies, guidelines and procedures. Businesses that fail to obtain or avoid to get Gumasta license are liable to heavy penalties (Approx. Rs. 1 lakh & Additional Fee of Rs. 2000/day). However, for repeated lawbreakers the penalty charge may extend up to Rs. 2 lakh.
Benefits 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
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.
What is Gumasta License?
Gumasta license is a type of registration required to do any kind of business in the state of Maharashtra.
What is the fees of registration for Gumasta License?
The fees, charges and penalties related to registration varies from state to state, so to get the exact rate you can visit the official website of the particular state you wish to start a business.
Is it compulsory to take Gumasta License?
Yes, if you want to start a business in Maharashtra then it is mandatory to get this license otherwise the penalty charges for not having license can go up to Rs. 2 lakh per applicant.
What is the validity of Shop Act Registration?
The validity of Shop Act Registration is for the lifetime.
Is there any difference between Shop Act Registration and Gumasta?
There is no difference between these two, as the word ‘Gumasta’ is derived from Persian language ‘Farsi’ and it means ‘agent’.