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.
Overview
A successful start is crucial for the success of any new business venture, and this holds particularly true when launching a new business. For this reason, it is highly recommended to thoroughly explore all the legal procedures necessary to initiate operations.
In countries like India, understanding the local laws governing the specific state where the business is set to launch is essential. Take, for instance, Maharashtra, one of India’s largest states and a significant business hub. Renowned for its rich heritage, vibrant culture, and thriving startup ecosystem, Maharashtra offers substantial opportunities for startups and various small businesses across sectors.
In Maharashtra, starting a business requires obtaining a Gumasta license, a mandatory requirement under The Bombay Shops and Commercial Establishment Act, of 1948. Though the state presents extensive opportunities, acquiring this license is essential.
Significance of the Gumasta License
The Gumasta license registration, overseen by the Municipal Corporation of Mumbai, is an essential requirement for starting a business in Maharashtra. This document grants permission to conduct specific business activities within the state and is indispensable for official recognition by authorized bodies, including banks.
Whether the business is operated by an individual or a large company, the Gumasta license is crucial for various purposes, such as opening a current account, obtaining a bank loan, or acquiring GST (Goods and Services Tax) registration.
Entities that Require a Gumasta License
A diverse range of entities requires the Gumasta license, encompassing all those intending to establish businesses in Maharashtra. This includes entrepreneurs, business owners, self-employed professionals, public and private limited companies, sole proprietorships, partnership firms, and individuals looking to open shops or other establishments.
Issued by the Municipal Corporation of Mumbai under Sub Section (2) of the Maharashtra Shops and Establishment Act, 1948, obtaining the Gumasta license provides holders with advantages in terms of payment and employment standards.
Validity of the License
A Gumasta license is valid for one year. An important point to be noted here is that the procedure to renew the license must be undertaken 30 days before the expiry date.
Characteristics of Gumasta License
- A Gumasta license is mandatory for businesses operating in Maharashtra.
- A Gumasta 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
- A Gumasta license must be registered within 30 days of commencing the business
- The application for Gumasta license renewal must be made 30 days before its expiry.
Documents Required for Gumasta License Registration
The following documents have to be submitted to get a Gumasta license registered:
- Proof of identity like the PAN card of the business owner/firm/ company
- Proof of address which includes utility bills like telephone bills, water bills, etc
- Registration certificate, in the case of charitable institutions/firms/companies
- Address proof and ID proof of the members of the company
- Certificate of Incorporation
- MoA or Memorandum of Association
- AoA or Articles of Association.
- Business authorization letter
- Recent passport-size photographs of the business owner/partners/directors
- 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.
- Application form for Gumasta license along with the prescribed fee.
Categories of Gumasta License
Gumasta License in Maharashtra is categorized based on the type of business or services provided. The following are the main categories of Gumasta License:
- Premises from where the services are provided to customers: This category includes businesses that offer services directly to customers from a specific location.
- Retail shops: Businesses engaged in the retail of goods, selling products directly to consumers, fall under this category.
- Wholesale shops: This category includes businesses that operate as wholesalers, selling goods in bulk to retailers or other businesses.
- Residential hotels: Establishments providing lodging services to guests temporarily, commonly referred to as hotels, fall under this category.
- Restaurants and eateries: Businesses involved in the preparation and sale of food and beverages for immediate consumption, such as restaurants, cafes, and eateries, fall under this category.
- Any public amusement park, theatre, or entertainment zone: This category encompasses businesses that provide entertainment services to the public, including amusement parks, theatres, and entertainment zones.
- Store rooms, warehouses, and godowns: Businesses that primarily operate as storage facilities for goods, including storerooms, warehouses, and godowns, fall under this category.
These categories help define the scope and nature of the business, ensuring that the Gumasta License is appropriately issued based on the specific type of business activity conducted at the premises.
Procedure for Registration of the Gumasta License
Step 1: Visit the official website of the Municipal Corporation of Greater Mumbai.
Step 2: Access the employer user profile and provide the necessary details for profile creation, including entity name, type of constitution, and applicant’s details (Full Name, Designation, PAN, etc.).
Step 3
- Enter your Mobile Number and Email ID.
- Input the respective OTPs.
- Click the Register button after entering the Captcha image.
Step 4: Log in to the official website using the newly created credentials.
Step 5: Navigate to the ‘Shops and Establishment License’ section and choose ‘Registration Form A.’
Step 6: Complete the registration form, pay the prescribed fee, and submit it. You will then receive a Universal Trial Number (UTN).
Step 7: Upload mandatory documents on the portal and print the acknowledgment form for future reference.
Step 8: The registration officer verifies all submitted documents and issues the Gumasta license upon successful verification. In case of rejection, the applicant must correct errors and resubmit the application.
Note: The application status will initially be “under inspection” and will change to “approved” upon verification by the office.
The registration officer may conduct a site visit if necessary to cross-check details provided in the registration form. It’s essential to note that Gumasta license registration must be completed within 30 days of commencing business operations.
Renewal of Gumasta License
To renew the Gumasta License, follow these steps:
- Log in to the official portal: Access the official website using your user credentials.
- Fill in the renewal form: Provide the required details and submit supporting documents.
- Pay the renewal fee: Complete the payment of the renewal fee through the specified channels.
- Check application status: Regularly check the status of the renewal application to know whether it is approved or rejected.
- Download the renewed Gumasta license: Upon approval, the applicant can download the renewed Gumasta license from the portal.
In case of delayed license renewal, a condonation fee may be applicable. An additional 50% of the renewal fee may also need to be deposited along with the renewal fee. For example, if the renewal fee is ₹1,000 and there is a delay, an additional amount of ₹500 must be deposited.
Conclusion
Obtaining a Gumasta license can be a complex task amidst other business setup activities. Outsourcing this activity is a prudent choice. Vakilsearch, with its expertise, can assist in obtaining the necessary licenses for setting up a business.
Professionals at Vakilsearch can handle the Gumasta license procurement, allowing you to focus on more critical business matters. Reach out to us through a phone call or chat inquiry; we are just a step away!
