What is Gumasta License?

Popularly known as the Shops and Establishment Registration, it comes under section 6(1) of the Maharashtra Shops and Establishment Act 2017. It is a mandatory licence that is needed by anybody wanting to operate a business in Maharashtra employing 10 or more workers. The Gumasta licence is issued and regulated by the municipal bodies in the state. The Gumasta License tracks the policy segment of your business operations, which combines working hours, paid leaves, and other provisions related to the dismissal of employees, as well as their welfare schemes.

Who can apply for the Gumasta License in Maharashtra?

The business should be generating or having an annual turnover of more than Rs 20 lakh.
It means that at least four employees must be working for the business to consider the business to be viable.
The business should be at least 25 sqm in size.
There should be a provision of a parking space for the business.
It should adhere to all the safety measures like the fire escape drill.

Is Gumasta licence compulsory for all shops and establishments in Maharashtra?

The need for a Gumasta licence, which is also known as the Shop and Establishment License, depends on the state or city in India. Generally, it is mandatory for most shops and commercial establishments, including:

Retail Shops: Supermarkets are one of them as are clothing outlets, electronics stores, and any other store one can think of.
Service Providers: Spa and salons, tour and travel agents, consultancy and many more.
Restaurants and Cafes: Restaurants of all types .
Theatres: Malls, restaurants, theatres and other such outlets of entertainment.
Warehouses and Storage: Those in the category of buildings and structures for storage of goods.

However Gumasta licence is compulsory for all the shops and establishments in Maharashtra.Shops and establishments are defined in the act and what all comes under shops and establishments.

Still there are exceptions to it,where shops and establishments do not need a Gumasta licence in Maharashtra.

The list of exceptions are provided in Section-3 of the Maharashtra Shops and Establishment Act 2017.

The Gumasta licence is a tool that sets the working conditions, fair wages, and rights of the employees. It is vested in the respective state’s government or local municipal corporation.

There might be specialised rules in your state or you can refer to the local municipal office to know if having a Gumasta licence is compulsory for your shop or not.

Gumasta License: Benefits

Legal operation: Since businesses operating under Gumasta License are under legal guidelines of the government, they will not have any issues.

Credibility: The advantages of having a Gumasta License is that it helps in giving the business a certain credibility.

Government schemes: Gumasta License allows a person to avail many connected government schemes like the subsidy and incentives. It will contribute to the growth of the business and put you in a better standing every time you apply for a loan.

Documents required for Gumasta licence registration

Proof of identity: PAN card, Passport, Aadhaar card, Voter ID
Proof of address: Rent receipt, telephone bills electricity bill, sale deed, receipt for payment issued by municipality and town for property taxes, notarised leave and licence agreement, receipt for society maintenance charges
Photocopy of licence and registration compulsorily required as per any other law from any competent authority before the commencement of the business.

Online Procedure for applying for Gumasta License

Offline procedure for obtaining Gumasta licence

Applying for a Gumasta License (Shop and Establishment License) offline in Maharashtra involves the following steps :

To obtain them, you need to go to the local municipal corporation or the labour office of your area. This office is responsible for the issuance of this Gumasta License.
Visit the office and ask the officials to provide you with the Shop and Establishment Registration application form. It is also possible you will stumble upon this form as a downloadable file on the website of the Maharashtra labour department.
Fill in the application form with proper and correct info. The information typically required includes:

Number and name and address of the establishment

Nature of business

Information about the employer of a candidate.

Number of employees

The number of years company has been in business and the specific date that business commenced

Attach Required Documents:

The application form is to be duly filled and must be accompanied with appropriate documents. Commonly required documents include:

A utility bill, such as rent agreement, property tax receipt etc , to confirm the physical address of the establishment.

Photo identity of the owner (Aadhar/ PAN/ Voter ID/ Passport any one document)

Additional information about persons accepted for employment (if any).

PAN number of the business firm

Pertaining to the characteristics of business for instance; nature and type

Submit the Application:
Enclose the application form along with the documents to be attached at the municipal corporation to the related officer of the municipal corporation or the labour office.
Pay the Registration Fee:

Depending on the number of employees and type of business the fee will differ from company to company. Get a receipt of the payment.

Inspection:

A check may be organised, either by a labour inspector to confirm the information given in the application form, and to ensure that the establishment adheres to the act governing Maharashtra Shops and Establishments.

Issuance of Licence:

On successful completion of the inspection, and upon the verification of all the mentioned details, the Gumasta License will be awarded. It may take about several weeks and therefore one should follow up with the office if there is any delay.

Display the Licence:

Once you get the licence, then you have to ensure that you hang it at your business premise as the law provides.

Gumasta License: Cost

One has to complete some form and pay some amount, which is attached with the Gumasta License, along with the necessary documents. This amount varies with the employment level of a particular firm, kind of business, and region of its operation. Pertaining to the fees chargeable for obtaining the Gumasta License, the cost may range up to Rs 10,000.

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All you need to know about Gumasta Licence in Maharashtra

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