What is the late fee in case one delays the process of Gumasta license renewal?

The new fee that one needs to pay is the renewal fee along with an additional 50% of the Gumasta license fee. For example, if the renewal fee is Rs. 1,000 and you have applied late, then you will have to pay an additional Rs. 500 for the renewal process.

What are rural local bodies?

The local bodies constituted for local planning, development, and administration in the rural areas are referred as rural local bodies (panchayats). The local bodies that are constituted for local planning, development, and administration in the urban areas are referred as urban local bodies (municipalities).

Can even a small shop obtain a Gumasta license?

Yes, any business could potentially obtain a Gumasta License.

Is it compulsory to take a Gumasta License?

Yes, it is mandatory to get this license otherwise to open up a business in Maharashtra, and the penalty for not obtaining a license could go up to Rs 2 lakhs.

What is the validity of Shop Act Registration?

The validity of Shop Act Registration is for lifetime.

Is there any difference between Shop Act Registration and Gumasta?

There is no difference between these two, as the word “Gumasta” is derived from the ancient Persian language of Farsi and it means “agent.”

Gumasta (also spelled Gomastha or Gumastha) was described as an Indian agent of the British East India Company employed in the Company's colonies to sign bonds, usually by force, with local weavers and artisans to deliver goods to the company. The prices of the goods were fixed by the Gumastas.

Is the Shops and Establishment Act applicable to factories?

The Shops and Establishment Act is not applicable to factories. Those are governed by the Factories Act, 1948. However, under the Act, the government of Maharashtra does reserve the right to declare that any organisation be considered an establishment under this Act, by an official notification.

What is a Shop Act Certificate?

The Act requires that every business get approval from the Department of Labour. The registration certificate can be obtained from the Chief Inspector of the Shops and Establishment Act or from other inspectors delegated to the area where you run the establishment.

What is the difference between a shop and an establishment?

According to the Shops and Establishment Act, a shop is a place where you can sell goods and offer services to its customers. For example, offices, warehouses, or storerooms. An establishment, however, includes hotels, restaurants, theatres, and other amusement parks.

Gumasta license - Registration Process, Documents & Key Features

Gumasta License

The Gumasta License is a requirement under the Maharashtra Shops and Establishment Act, 2017. The license is issued by the relevant municipal corporation or the relevant rural local body and is a requirement for anyone looking to start any type of business in Maharashtra, whether as an individual or as an organisation. The license is valid for anywhere between one to 5 years and needs to be renewed one full month before the date of expiry. Every employer who has over nine employees absolutely must apply for a Gumasta License.

Key Features of the Gumasta License

The license is issued under Section 6 (1) of the Maharashtra Shops and Establishment Act, 2017
The license is mandatory for any business in Maharashtra, and once obtained, makes one eligible for various tax subsidies provided by the government of Maharashtra
Most relevantly today, one cannot obtain their GST registration in Maharashtra without the Gumasta License
There is no registration fee charged for the license
The license serves as proof that an establishment is a recognised legal entity
The license serves as a proof of identity for banks
One must register for this license within 60 days of starting of a business
This license is valid for a period of 1 to 5 years (as applicable), after which the licensee would need to renew it, and could do so for up to 10 years (as applicable)
For Gumasta license renewal, one must apply 30 days before the date of expiry of the license

Categories under the Gumasta license

All organisations that can be listed under any of the definitions or categories given below are governed under this requirement, and any organisation with 10 or more employees will necessarily have to obtain this license within 60 days. The categories of establishment are,

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

Required documents

If you are looking to apply for a Gumasta license, then you would need to submit all the documents as specified by the authorities. Here is the list of documents that you will need:

If you are planning to register a general or sole proprietorship, then the following documents would be required:

Aadhaar card
PAN card
Address proof
Photograph
Business authorisation letter
Proof of ownership over property

If you are registering a partnership firm, then you will need the following documents:

Partnership firm’s plan
Partnership deed
Partner(s)’s proof of identity
Address proof
Fees for a partnership firm

Private company – to register a private company, you will have to submit the following documents:

Address proof
Proof of identity for the partners
MOA or Memorandum of Association
Articles of Association

Charitable trust – name of the trustees and certificates

Bank – permission copy issued by RBI

Cooperative society – a copy of the registration

Steps to follow

If required, the registration office might also visit your premises to cross check the details. Please also note that the Gumasta License is available whether or not an organisation has 10 or more employees. On the same site, there is an option to obtain a Gumasta License for organisations with nine or less employees. While this is not legally required, many organisations prefer to get the Gomusta License due to the ease it provides for running a business in Maharashtra as well as due to the fact that many banks now insist on a Gumasta License in order to create a bank account for a business (current account).

To begin the process, you need to log on to the official website of the Municipal Corporation of Greater Mumbai, or else you can also click on this link and it will redirect you to the page where you can register
Once you have landed on the page, you should go to the Shop and Establishment section. Here, you can begin with the registration process
After filling out the form for registration, you have to submit it. After this, you will get a receipt
Once you get the receipt, you will have to pay the Gumasta License fees to get the UTN number
Once you have made the fee payment, you need to print out the form and have all the documents ready with you and submit it
The registration officer will verify all the documents and will provide the license after successful verification

Process for Gumasta License Renewal Online

You can easily opt for renewal online by running through the following steps:

It is worth mentioning that if the Gumasta license is not renewed on time, a late fee of 50% of the total renewal fee is charged at the time of filing for renewal. This renewal can has to take place at least 30 days before the expiry of registration or within 30 days after the expiry date of the registration certificate.

Click on this link https://portal.mcgm.gov.in/irj/portal/anonymous
After this, you need to provide all the details that are mentioned in the application
Additionally, upload the supporting documents
Pay the renewal fee
Check on the status of your application to know if it has been approved or rejected
Once it is approved, you will get an option to download the registration certificate of the Gumasta License

What Is the Gumasta License Registration Process?

The steps you must take to register a gumasta license under the Bombay Shop and Establishment are as follows:

This registration form can be filled out online at the official website
Under ‘Create Employer User Account’ enter your email address, password, and other information to create a new account
After you make an account, you can sign in
On the left side of the page, click on ‘Shops and Establishment Registration’ then click on ‘Registration Form A’ below it
Fill out ‘Registration Form A’ upload documents, pay the fees online, and send it in
Once the form is approved, the Registration Certificate will be sent to you by email, or you can download it by logging into the website and clicking ‘Download Registration Certificate’ on the right side of the screen.
Registration Certificate has to be submitted to the Area Inspector within 30 days of starting the business.

Advantages of Applying for Gumasta License

Here are some advantages that small businesses can get by signing up for a Gumasta license:

Once you have registered for a Gumasta license, you are eligible for all of the state of Maharashtra's perks and tax breaks offered under this programme
It acts as evidence of your legal status, granting you permission to operate a business in the state of Maharashtra
Any firm that wants to take payments from clients needs a business bank account. In order to open a business bank account, the majority of institutions require the Gumasta license as identification.

Who Is the Regulatory Authority for Gumasta License?

The Municipal Corporation of Maharashtra and the Maharashtra Shops and Commercial Establishments Act are the main regulatory bodies or authorities for the Gumasta License in Maharashtra. The Bombay Shops and Commercial Establishment Act, 1948, is the primary statute governing gumasta license.

Before setting up a shop or other type of business in Maharashtra, an applicant must obtain this type of license in order to abide by the regulations of the appropriate authorities.

What Is Gumasta License Registration fees?

Gumasta license application fees vary widely from one state to the other. Gumasta Licenses are valid for one year and can be extended for up to ten years. Furthermore, once registered, you can apply for Gumasta License renewal by submitting an application thirty days before the expiry date of the registration certificate.

FAQs on Gumasta License

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