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What is a Gumasta license?

Gumasta License is the registration required for any type of business in the State of Maharashtra. Under the new rules, if your company has more than 10 employees, it is mandatory to get a Gumasta license and if you have less than 10 employees, you can register yourself for a general Gumasta acknowledgement.

Entrepreneurs need a Gumasta license to start any type of business in Maharashtra. This license is governed by the Mumbai Municipal Corporation under the Maharashtra Shops and Establishments Act, 2017. The Gumasta license gives entrepreneurs the right to start their business in a specific place, area or place that exists in Maharashtra, India.

Different Municipal Corporation issues Gumasta licenses according to each place like Navi Mumbai Municipal Corporation, Thane Municipal corporation etc etc

Who wants to get Gumasta license?

Gumasta license must be obtained by business owners, entrepreneurs, self-employed professionals, public and private limited companies, sole proprietorships, partnerships and LLPs wishing to open physical shops, hotels or commercial locations in Maharashtra. A Gumasta license is required for all businesses employing 10 or more workers in a shop or establishment. This certificate or license helps in controlling the working condition or conditions of the employees and the payment and regulation aspects of their employment. This license or certificate is a basic or mandatory requirement for the people of Maharashtra to be approved by all the working banks and NBFCs.

Gumasta license or registration component includes the following

·        Name and year of establishment

·        The nature of the business

·        Owner's name

·        Number of workers or employees

·        Other relevant details and information

·        Validity

Steps to Register for a Gumasta License

Step 1: Applicants can visit the official website by clicking on http://www.mcgm.gov.in for Mumbai place Gumasta license or visit https://lms.mahaonline.gov.in / for anything other than Mumbai place Gumasta license.

Step 2: Applications can be submitted online by filling up shops and establishments

Step 3: After filling up the application, an invoice number will be generated and a UTN number can be obtained after paying the required fee

Step 4: In order to get the print of the application, the required documents along with the payment have to be submitted

Step 5: All documents must be submitted to the shop license department of Mumbai Municipal Corporation or Labour department

Step 6: After verification of all the documents by the relevant documents, the shop license will be issued to the applicant within a period of 7-10 working days or some other delay.

Step 7: If necessary, officers will visit the location of shops and establishments

Important Note: Registration application for Gumasta license has to be submitted by the concerned field officer within 30 days of commencement of business

What documents are required for Gumasta license?

Sole proprietorship, partnership, private company (if applicable)

·        Application form

·        Passport size photographs

·        Proof of identity - Aadhar card, PAN card, passport

·        Proof of Address - Voter ID, Passport, Utility Bills, such as Water and Electricity Bills

·        Partnership agreement

·        Memorandum of Association (MOA) and Article of Association (AOA)

·        PAN number of the partnership firm

·        Certificate of Business Corporation

·        Proof of ID of partner and company director - identity and address

·        Proof of ownership of the property

Documents related to shop or establishment

·        Name of the establishment

·        Name of employer and manager if applicable

·        Proof of address of shop or establishment

·        Category of shop or establishment

·        Photo of the shop with a signboard

·        Photo of the owner with the shop

Gumasta license renewal, fees and penalties

The Gumasta license used by the people of Maharashtra is issued only once and the validity of this certificate or license is for life. However, licensing fees and charges may vary from state to state each year and may also depend on government policies, guidelines and procedures. Businesses that fail to obtain or avoid a Gumasta license may face heavy fines (approximately Rs. 1 lakh and an additional fee of Rs. 2000 per day).

However, the penalty may for frequent legal violations is Rs. 2 lakhs.

Benefits of Gumasta license

·        Get tax subsidy from Maharashtra State Government

·        It serves as proof of the legal existence of the right to do business in Maharashtra

·        Many banks accept Gumasta license to open a business bank account

Cancellation of Gumasta Certificate / License

If an applicant or an existing certificate holder wishes to cancel the license, he/she shall

If he/she wants to cancel the license or registration, submit a statement in this regard.

Secondly, if the owner fails to submit his statement along with the documents within 10 days from the date of receipt of the notice, his registration may be cancelled.

Frequently Asked Questions on Gumasta License

Q. What is the registration fee for the Gumasta license?

Answer:- Fees and penalties related to registration vary in different states, so you can visit the official website of the specific state where you want to start a business.

Q. Is it mandatory to get a Gumasta license?

Answer:- Yes, if you want to start a business in Maharashtra, it is mandatory to get this license as per rules is applicable to you otherwise, the penalty for not having a license is Rs. 2 lakh to the applicant

Q. What is the validity of shop Act registration?

Answer:- Shop Act registration is valid for life.

Q. Is there a difference between shop Act registration and Gumasta?

Answer:- There is no difference between the two, as the word ‘Gumasta’ comes from the Persian language ‘Persian’ and means ‘agent’.

Author

Santosh Patil

Founder & CEO @ Alliance Tax Experts

santoshpatil@alltaxfin.com

9769201316 / 02249742166

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