If you are about to start a new business with a physical shop then you need Gumasta License from your State Authority. Gumasta License came into force to protect the Employee’s Rights and other establishments in the Jurisdiction. It helps to regulate the betterment of the employee and provides maximum benefits. Get to know the Gumasta License Registration Process, Documents Required, Benefits, License Renewal, Fees and Penalty, etc.
- What is Gumasta License?
- Who should Register for Gumasta License?
- How to Register for Gumasta License Online?
- Documents required for Gumasta License Registration
- Time taken for Gumasta License Registration
- Gumasta License Renewal, Fees & Penalty
- Key Features of Gumasta License
- Advantages of Gumasta License
- FAQs on Gumasta License Registration
Gumasta License is a Registration needed for doing any kind of business in Maharashtra. It is a certificate the grants authority to do business in a particular place and is a basic requirement to be recognized by the Banks.
Getting Gumasta License ensures that business can be developed without any compliances and you can get a current bank account and also loans easily. It is difficult to obtain the GST Registration without this Gumasta License.
Gumasta License is needed for business owners, self-employed professionals, entrepreneurs, sole proprietorship, public and private limited companies, partnerships, and LLPs. It is necessary for those who have 10 or more workers in an establishment. Gumasta License helps in regulating the benefits of employees and is the mandatory requirement for all banks.
Follow the simple steps listed below to get Gumasta License Registration and they are as under
- Applicants need to visit the official portal i.e. http://www.mcgm.gov.in
- Select the Application Form under Shops and Establishment fill it and submit it online.
- Once you fill the Application Form, you will obtain the Challan Number and UTN Number after payment of fees.
- Submit the necessary documents and make a payment to obtain the Application Form.
- Submit all the Required Documents to the Shop License Department of Municipal Corporation of Mumbai.
- After the Concerned Officer verifies the documents, Shop License is provided to the applicant within 7-10 working days or with some delay.
- If needed officer visits the shop or establishment’s location.
Below is the list of documents needed for registration. For your comfort, we have listed the documents to be carried depending on the Partnership, Private Limited or Company.
- Aadhar Card/ Pan Card/ Photo
- Address Proof like Electricity Bill
- Application Letter in the Prescribed Format
- Proof of Ownership of Property
- Authority Letter for Business
- Partnership Deed
- Partner’s ID Proof – Address and Identity
- Prescribed Fees for a Partnership Firm
- Partnership Firm’s Pan
- Memorandum and Article of Association
- Company Director’s ID Proof – Address and Identity
- Certificate of Incorporation
Gumasta License Registration is an online process and takes around 7-10 working days for the approval of the license.
Gumasta License for People of Maharashtra is given once and the certificate validity is for a lifetime. However, the charges and license fees may vary from state to state and their respective Government’s Guidelines Policies. Businesses that fail to get the License have to pay huge penalties.
There are several rules and regulations under the Gumasta License. Some of the Key Points are noted as under
Hours of Operation – Businesses in Maharashtra can now stay up 24/7. This is applicable for movie theaters, restaurants, medical practices, financial institutions, and retail outlets. There is an exception for businesses such as alcohol or cigarettes and they need to stay up to their deadline timings only.
Working Hours for Employees or Women in Organizations – As per the Gumasta License the Employees will have standard working hours 7 AM to 9 PM. In the Case of Female Employee, you need to protect in terms of transactions, recruitment as well.
Leaves for Employees – As per the Gumasta License there will be 45 paid leaves and 8 casual leaves. In addition to these employees are eligible for national holidays.
Overtime Rules for Employees – Regular Working Hours for Employees is 9 Hours a day and 48 Hours per Week. If at all the Owners want the Employees to work after the working hours then they need to pay them double wages.
Here is the list of some of the benefits that small businesses can attain by availing the Gumasta License. They are in the following days
- If you register for Gumasta License you can get Tax Subsidies from the Maharashtra State Government under this scheme.
- It acts as a legal entity proof to conduct business in Maharashtra State.
- Most businesses require a business bank account to collect money from customers. Banks demand Gumasta License as a legal entity proof to open a business bank account.
1. What is a Gumasta License?
Gumasta License is a registration for doing any kind of business in the state of Maharashtra.
2. Is there a difference between Shop Act License and Gumasta License?
There is no difference between Shop Act License and Gumasta License and both are the same.
3. Is Shop Act compulsory in Maharashtra?
Yes, Shop Act is mandatory if the business premises are located within Municipal Limits.
4. Is Gumasta license compulsory for opening a current account?
If you want to start a business then getting Gumasta License is mandatory and having it makes it easy for you to get the Gumasta License.