Shops and Establishment

How To Obtain Gumasta Licence In Maharashtra For Your Business

In this article we will look into what is a Gumasta Licence, why it is required and how to get one in the state of Maharashtra.

India is a highly diverse country. Every state has its own culture, practices and resources. Keeping that in mind, the constitution has distributed the overall administrative powers between the state and the centre. There are certain matters such as human rights, defence, infrastructure etc. that fall under the ambit of the powers of the central government. And then there are certain matters such as property, local economy etc. that fall under the ambit of the powers of the state government. In this article we will specifically discuss the concept of a Gumasta Licence which falls under the powers of the state government. And in this case, we are specifically going to be talking about Maharashtra. But first let us discuss the general concept of a Gumasta licence. 

What is a Gumasta License?

The word Gumastha comes from the Persian word ‘Gomasta’ which literally means an agent. During the British rule over India a Gumasta was a person who were trade agents acting as intermediaries between the British East India Company and the local traders and artisans. In the modern context, however, a Gumasta licence is a licence given to individual traders and business owners to do business. Each state has its own set of procedures, rules and fees for a Gumasta licence registration.

In the state of Maharashtra, it is the Mumbai Municipal Corporation that issues Gumasta Licence. The Corporation itself functions as per the rules and regulations laid down under the Maharashtra Shops and Establishment Act. This certificate gives individuals the authority to conduct their business within the boundaries of the state of Maharashtra. It is a mandatory registration. Without it, the business cannot be deemed legal and besides cannot avail facilities such as applying for business loans.

Why Do You Need the Gumasta License in Maharashtra?

As mentioned before, the Gumasta License is a mandatory legal document for anyone who wishes to practise trade in the state of Maharashtra. Just like there is a certificate of incorporation for Companies and Partnership deeds for Firms, proprietorships businesses also need to be validated by the government before they can conduct business within the borders of the state. Therefore, procuring this licence is mandatory if you wish to start a commercial entity. This certificate is like an identity proof for the business entity. A Gumasta Licence is recognised by both the government and any bank in Maharashtra. The Gumasta licence serves as proof that the business, whether it is run by a person or a group, is a legal entity. Therefore, the Gumasta License is important if an entity wishes to open a bank account or apply for a loan. Furthermore, it is essential if the business wishes to register itself under the new GST regime.

Documents Required

The following documents are required to attain a Gumasta Licence in Maharashtra

For sole proprietorship

  • Aadhaar card
  • PAN card
  • Passport-size photograph
  • Proof of address
  • Application letter 
  • Business authorization letter
  • Proof of ownership regarding the property wherein the establishment functions

For a partnership firm

  • Partnership deed
  • Partnership firm’s plan 
  • ID and address proof of all the partners
  • For Private companies
  • Memorandum of Association
  • Articles of association
  • Certificate of incorporation
  • Proof of identity and address of the Director

For Charitable trusts

  • Trustee name 
  • Authorization certificate.

For Cooperative societies

  • Registration copy
  • Certificate of authorization

For Banks 

  • Permission letter issued by the Reserve Bank of India 

Advantages of Having a Gumasta License

  • In order to encourage registering a Gumasta Licence the state government has launched several initiatives that incentivise Gumasta Licence holders.
  • The Maharashtra Government also offers tax subsidies to holders of Gumasta Licence 
  • A Gumasta licence is the most widely accepted ID proof for any business
  • Serves as proof of identity when opening business bank accounts.
  • Makes your business more credible and trustworthy

How to Register for Gumasta License

  • The process of registering for a Gumasta License occurs online, via the Mumbai Municipal Corporation’s official website. 
  • From the website’s home page, go to the Shops and Establishment section.
    Gumasta-License shop act establishmentGumasta-License shop act establishment
  • From the drop-down menu, choose the Gumasta License application form.
  • Fill in the details required and upload the supporting documents.
    Gumasta-License form to fillGumasta-License form to fill
  • Finally, pay the processing fees for the same, using any of the available payment methods
  • Once you submit the form, you will receive a challan number for the fees paid.
  • Furthermore, a Unique Transaction number or UTN will also appear.
  • Note this number down for future references.
  • Download the form and physically submit it to the Chief Inspector of the Shop License Department along         with the other documents for verification.
  • Once the verification is over, an officer will visit the shop as a part of the physical verification.
  • After this, on successful completion, the user will receive the Gumasta License.
  • Status of your application can be tracked online using the UTN number

Things to Know About Gumasta License

  • The entire process of obtaining the licence can take anywhere between 12 to 14 working days.
  • Usually, the Gumasta License is valid for one year, but it can extend up to 10 years if renewed efficiently. 
  • At the time of closing, the owner must make sure he or she cancels the licence.

Conclusion

Registrations and licences that need to be attained before commencing a business can be confusing, tedious and taxing. So it is always advisable to solicit the help of a lawyer while filling the forms and filing the papers because a lawyer with experience will be aware of all the kinds of objections the officers may raise or the kind of paperwork they may demand. This kind of knowledge only comes from hands-on experience. If you have any queries or need help with registering a Gumasta licence, get in touch with our team of experts who will be happy to assist you with your requirements.

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