Shops and Establishment

What are the Documents Required for getting a Gumasta License?

Gumasta license is a mandatory license required for all shops and establishments, whether operated by an individual or an organization, irrespective of whether it is a sole proprietorship or any other type of entity, in the state of Maharashtra.

Well, begun is half done! This is true, especially in the case of new business ventures. When a business is about to be launched, it is always advisable to probe into all the legal procedures required to set it in motion. Further, in a country like India, it is always best to learn about the local laws governing the respective state where the business owner wishes to launch the business.

For instance, Maharashtra, one of India’s largest states, is undoubtedly a huge business hub. The state is not only famous for its well-endowed heritage and exquisite culture but also for its huge startup base. The state renders massive opportunities for startups and several other small businesses that belong to various sectors.

To kick start a business in Maharashtra, a Gumasta license is mandatory, as stated in The Bombay Shops and Commercial Enterprise Act, 1948. To get hold of the same, the prospective business owner has to furnish certain documents, without which the license cannot be procured.

Significance of the Gumasta License

A Gumasta license registration, governed by the Municipal Corporation of Mumbai, is mandatory to commence a business in Maharashtra. It is a document that permits one to carry out a specific business activity within the state. The license is a prerequisite for authorized bodies, like banks, to acknowledge a business regardless of whether an individual or a large company operates. The license, therefore, is mandatory for businesses to operate a current account, to avail of a loan in the bank, or to get a GST (Goods and Services Tax) registration done.

Entities that Require a Gumasta License

The Gumasta license is required by individuals looking forward to opening a business in Maharashtra. Entrepreneurs, business owners, professionals who are self-employed, public and private limited companies, sole proprietorships and partnership firms, or individuals who intend to open shops or other establishments require a Gumasta license.

The Municipal Corporation of Mumbai issues the license. This falls under Sub Section (2) of the Maharashtra Shops and Establishment Act, 1948. Obtaining the license helps the license holders avail benefits in payment and employment standards.

Validity of the License

The Gumasta license is valid for one year. An important point to be noted here is that the procedure to renew the license must be taken up 30 days before the expiry date.

Characteristics of Gumasta License

  • The license is mandatory for businesses operating in Maharashtra.
  • The license is issued under Sub Section (2) of the Maharashtra Shops and Establishment Act, 1948.
  • A Gumasta license is compulsory to get the GST registration done
  • The license must be registered within 30 days of commencing the business
  • The application for the license renewal must be made 30 days before its expiry.

Documents Required for Gumasta License Registration

The following documents have to be furnished mandatorily to get the license registered:

Sole Proprietorship

  • Proof of identities like PAN card and Aadhaar card of the business owner
  • Proof of Address which includes utility bills like telephone bills, water bills etc
  • Registration certificate, in the case of charitable institutions
  • Business authorization letter
  • Recent passport-size photographs of the business owner
  • Proof of ownership of the property like the sale deed or in case of rented property, rental agreement, and NOC (No Objection Certificate) from the owner
  • Authorization letter from the Municipal Corporation of Maharashtra.

Partnership Firm

  • Partnership Deed
  • PAN details of the firm
  • Identity proofs and address proofs of the respective partners of the establishment
  • The prescribed fee of the partnership firm
  • Application form for Gumasta license along with the prescribed fee.

Private Company

  • Address proof and ID proof of the members of the company
  • Certificate of Incorporation
  • MoA or Memorandum of Association
  • AoA or Articles of Association.

In the case of charitable trusts providing the names of the trustees along with the registration certificate becomes essential. Individuals can even start a bank in the state of Maharashtra, provided they possess the Gumasta license and the RBI (Reserve Bank of India) permission to commence the business. A copy of the registration certificate must be furnished for co-operative societies.

Categories of Gumasta License

  • Premises from where the services are provided to customers
  • Retail shops
  • Wholesale shops
  • Residential hotels
  • Restaurants and eateries
  • Any public amusement park, theatre, or entertainment zone
  • Store rooms, warehouses, and godowns.

Procedure for Registration of the Gumasta License

Step 1: Log in to the official website of the Municipal Corporation of Greater Mumbai.

Step 2: Go to the employer user profile and create a profile by entering the details required like the Name of the Entity, Type of Constitution, details of the applicant like Applicant’s Full Name, Applicant’s Designation in Firm, Applicant’s PAN, etc.

Step 3:

  • Enter the Mobile Number and Applicant’s Email ID.
  • Enter the respective OTPs (One Time Passwords).
  • Click the Register button after entering the Captcha image.

Step 4: Once the profile is created, login to the official website using the credentials thus generated in the above step.

Step 5: Go to the ‘Shops and Establishment License’ section and select ‘Registration Form A’ provided under it.

Step 6: Fill out the registration form, pay the fee mentioned, and submit the form. The applicant will receive the UTN (Universal Trial Number)

Step 7: The mandatory documents must be uploaded to the portal, and the form can be printed for reference.

Step 8: The status of the application will be reflected as “under inspection” and changed to “approved” once the office approves the registration. The registration officer will verify all the documents thus submitted and will provide the Gumasta license after successful verification. The applicant must correct the error and re-submit the application if the application is rejected.

The registration officer might visit the business premises if required to cross-check the details provided in the registration form. Also, it has to be kept in mind that the registration for the Gumasta license must be carried out within 30 days of starting the business.

Renewal of License

  • Log in to the official portal with the user credentials
  • Fill in the form with the details asked for and submitted the supporting documents
  • Pay the renewal fee
  • Check the status of the application frequently to learn if it is approved or rejected
  • Once approved, the applicant can download the renewed Gumasta license.

If the license renewal is delayed, the applicant might have to pay a condonation fee. An additional 50% of the fee amount has to be deposited along with the renewal fee under such circumstances. For instance, if the renewal fee is ₹1,000 and the applicant has delayed renewing the Gumasta license, an additional amount of ₹500 must be deposited.

Getting a Gumasta license can be challenging amidst carrying out the other activities to set up a business. At this juncture, a business owner must be adept enough to outsource the activity. We at Vakilsearch have excellent expertise in procuring the licenses required to set up a business. Our professionals can get the Gumasta license, while the business owner can concentrate on more crucial business issues. Remember! We are just a phone call or an inquiry away!

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