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written by | April 20, 2022

Exploring the Gumasta Licence: Registration Process, Advantages

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If the words Gumasta licence sound alien to you, don't get intimidated. It is obligatory to procure this licence to set up a commercial business in the state of Maharashtra. This licence comes under the 2017 Maharashtra Shops and Establishment Act, and the municipal corporation of Mumbai city governs it. Once you obtain such a licence, you have the freedom to launch any commercial business on a small or large scale in your preferred choice of location. This state government document is necessary for all businesses with at least 10 or more employees. This plays a vital role in the setting up of every commercial enterprise as it helps protect workers' rights in all aspects. This includes ensuring that they work under safe conditions, their salaries are regulated, and they benefit from all the provisions detailed in the act. All banks, as well as non-banking finance companies, endorse this state permit.

Did you know?

The Gumasta licence has a validity of 12 months only but can be granted for a decade

What Is a Gumasta Licence?

Maharashtra is the commercial capital of Mumbai, which makes it a very appealing territory to start a commercial business. The Gumasta licence is a crucial prerequisite for conducting business in Maharashtra. Whether the business is a proprietorship, partnership, retail or wholesale, it has to first apply for and obtain this licence. This licence authorises individuals to set up their commercial enterprise in a place of their choice across the state of Maharashtra. The labour department executes all registrations under this law. Business owners or partners can register under this act within 30 days of starting their commercial activities. If they do not acquire this licence, they will not be able to get a GST registration. Some of the types of businesses set up using the Gumasta licence are as follows:

  • Restaurants – these could include the 'only meals' category
  • Cinema halls
  • Entertainment outlets – billiards outlet
  • Storage premises – godowns, warehouses, small store-rooms
  • Commercial premises – small services like Aadhar card updates
  • Retail business
  • Wholesale business
  • Any premises which involve the employment of people
  • Hotels – residential

Also Read: How To Get A Business License In India?

Key Aspects of the Gumasta Licence

Some of the business requirements which are regulated under the Shop Act are as follows:

  • The working hours of the business – start and end
  • The total number of hours of work
  • The day/s on which the business will be closed – details on the number of days (weekends) and holidays
  • Accurate maintenance of all business transactions – this includes staff details and payroll.
  • Wages for daily workers – with reference to holidays
  • Maintenance of hygiene on the premises
  • Correct ventilation of all the departments to ensure staff comfort
  • Timely intervals for lunch and tea
  • Safety conditions and various provisions to protect all employees
  • Employee policies – recruitments and dismissals
  • Other policies – non-employment of kids

Steps to Be Followed for Registration

The Gumasta registration involves various steps to ensure a smooth process for obtaining the licence on time. Given below are details on the various steps involved:

Gumasta licence online registration:

  • Visit the website of the municipal corporation of Mumbai.
  • Access the section that states' click here to register Gumasta licence and click on it
  • You will see a form under the shops and establishment section. 
  • Put in all accurate details.
  • Once you complete all the required formalities, the website will generate a challan number for you.
  • You will now have to pay the required fee.
  •  It will generate a Unique Transaction Number (UTN).
  • You now have to take a print-out of the completed form.
  • You will now have to take all necessary documents along with this form and submit it to the department of shop licences of the local Brihanmumbai Municipal Corporation's (BMC) ward.
  • After fulfilling these activities, an officer of the said department will visit you. The visit is purely to understand the location of your proposed business.
  • After verifying all the details, the concerned officer provides you with the shop licence.
  •  If an enterprise has already started operations, it can still submit its registration application to the concerned shop inspector of that region within 30 days of starting the commercial activity.

Documents Required to Obtain a Gumasta Licence

The documents required to acquire a Gumasta licence vary depending on the commercial business category. The details of the different types of documents and the category of the business are as follows:

Proprietorship:

  • Pan card and/or Aadhar card
  • Photographs as requested
  • The application letter in the necessary format
  • A letter of authority to initiate the business
  • Documents that prove the said premises or property is duly owned by the concerned proprietor

Partnership:

  • Deed of partnership
  • The PAN card details for the said partnership organisation
  • The requisite information of the partners involved – their permanent address, contact numbers, among other details
  • The stated fees in the case of a partnership business

Private Establishment:

  • Documents – Articles of Association as well as Memorandum of Association
  • A certificate of incorporation – This will detail the name of the organisation, the objective of the business, the address of the registered post office as well as the registered agent
  • The id proof of the director of the said organisation

Also Read: Learn Everything About Trade Licence and its Renewal

Details of the Various Forms Which You Need to Complete Online Registration:

  • Form A – If it involves a new registration
  • Form B – Renewal of a licence
  • Form I – This application is made to indicate any changes – this applies to situations where there are 10 or more employees.
  • Form F – This applies to situations where there are less than 10 employees
  • Form J – This form has to be duly filled and submitted, in case of business closure, within 10 days of the business shutting down. This applies to situations where there are less than 10 employees
  • Form K - In case of a closure of the business. This applies to situations where there are less than 10 employees.

What Are the Various Advantages of Applying for a Gumasta Licence?

The benefits of possessing a Gumasta licence are:

  • Authorises you to establish a commercial business in your preferred location in the state of Maharashtra
  • This licence is concrete proof of you being the rightful owner of the business you operate.
  • The Gumasta licence also serves as proof of your identity and your business.
  • Many tax subsidies accompany this licence. In the case of manufacturing units that have started with an investment amount of ₹ 25 lakhs, the concerned owner can benefit from monetary aid amounting to ₹ 10 lakhs. The Industrial Development Bank of India, public sector banks, and the regional rural banks of India give these types of loans. For those who belong to the scheduled castes or tribes or other backward classes (OBC), there is financial assistance of almost 90% of the total cost of their project.
  • The seed money scheme – This involves soft lending loans to motivate unemployed individuals and can start their ventures. Projects that involve investments of ₹ 25 lakhs get a 15% aid (of the total cost). The scheduled caste or other backward class receive a 20% aid of the project's total cost. One must remember that the maximum seed amount does not exceed ₹ 3.75 lakhs and carries an interest rate of 6% per year.

Conclusion

The Gumasta licence is mandatory for every business entity, be it proprietorship or partnership, to set up a commercial business in Maharashtra. The details of this article affirm the necessity of this permit which authorises businesses to choose their location. Once businesses obtain this state permit, they can enjoy many tax subsidies which the Maharashtra government offers. The process is very simple if you have all the necessary documents.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Is the Gumasta licence document endorsed by banks?

Ans:

Yes, banks endorse these licences and consider it a legal document.

Q: Is there a facility for Gumasta license renewal?

Ans:

Yes.The terms may change; therefore, it is always better to check the latest updates on the website, but you can renew them.

Q: Can the Gumasta registration be done online?

Ans:

Yes. You can very easily register for a Gumasta licence online. Once you visit the website, you can follow all the simple instructions. You will need scanned copies of all the necessary documents.

Q: What are the payment fees for application for a Gumasta licence?

Ans:

The fees differ across the various states of India. If any discrepancies arise, the penalties also vary across the different states of India.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.