Gumasta Licence Online 2025

Get your Shop Act Licence

Every business in Maharashtra requires a compulsory Gumasta License, which originates from the Shops and Establishments Act through the Municipal Corporation of Maharashtra. The Gumasta License serves as an obligatory requirement for businesses ranging from shops to restaurants and commercial enterprises and industrial units that operate in Maharashtra.

Gumasta registration

Key Purpose: The licensing system ensures appropriate standards for business work environments and employment rights, together with salary specifications and operational quality procedures.

  • It is mandatory for all businesses in Maharashtra.
  • A business bank account requires the Gumasta License for setup.
  • Acquiring other business licenses requires this document as an essential requirement.

The Gumasta License operates as the mandatory certification of the Maharashtra Shops and Establishments Act, 2017. Every citizen who wants to operate a business in Maharashtra needs the license issued by their respective municipal corporation or rural local body.

Every Gumasta License expires after one to five years of validity, and renewals need to be applied one full month before the date of license termination. Every employer running a business with nine or more employees must obtain a Gumasta License.

  Why is a Gumasta License Required?

  • Legal business registration under state laws
  • Abank account becomes available to businesses through this license.
  • Obtaining other business licenses, such as GST registration and trade license, becomes possible with a Gumasta License.
  • The license protects staff member rights through rules establishing minimum work conditions, including payment rates and operating schedules, along with workplace safety measures.
  • Avoids penalties and legal issues

What is a Gumasta License?

A new physical business needs the essential Shop Act License also known as Gumasta License to operate in India under the framework of Shops and Establishments Act. Local municipal authorities grant the license under Shops and Establishments Act regardless of business type because all companies require it to operate. Every business requires a Shop Act License to function lawfully while complying with worker regulations. The Gumasta License exists to safeguard employee rights by establishing working condition standards that define payment regulations and supplementary work-related benefits. Every commercial business together with shops hotels along with restaurants must obtain a Shop Act License as part of their setup requirements. For Gumasta License registration businesses need to supply essential details concerning their employer and manager names together with information about their establishment name nature and worker employment numbers. After business application processing the authorized authority issues an intimation receipt permitting legal operation within their jurisdiction.

Who Needs a Gumasta License?

All commercial businesses located in Maharashtra are required to obtain this license, regardless of their nature:

• Small businesses and startups
• Retail shops and wholesalers
• E-commerce and online businesses
• Hotels, restaurants, and cafes
• Manufacturing units and factories
• Freelancers and home-based businesses (if hiring employees)
• Corporate offices and co-working spaces

Benefits of Obtaining a Gumasta License

Acquiring a Gumasta License provides multiple official and financial advantages to business operators:

• Legal authorization: makes your business legally compliant with Maharashtra state laws.
• Business bank account: required for opening a current account in banks.
• Obtaining the Gumasta license provides access to MSME subsidies and business loans, as well as eligibility for financial schemes from the government.
• The Gumasta License allows business operations to run smoothly through employee recruitment and the GST application and other license procurement process.
• Businesses that operate without a Gumasta license will face both financial penalties and potential closure.

Documents Required for Gumasta License

  • Aspiring applicants seeking the Gumasta License must present the documents mentioned below:

For Proprietorship Business:

  • Aadhar Card and PAN Card, which belong to the proprietor, serve as proof.
  • An Electricity Bill or a Rent Agreement of the business premises is required.
  • A Non-Obligation Certificate issued by the building owner is necessary for rented premises.
  • Passport-sized Photographs are required.
  • A Company PAN Card combined with an Incorporation Certificate or Partnership Deed along with Memorandum of Association (MOA) and Articles of Association (AOA) are required.

For Private Limited / LLP / Partnership Firms:

  • Company PAN Card
  • Incorporation Certificate or Partnership Deed
  • MOA & AOA (for Private Limited companies)
  • Business Address Proof (Rent Agreement, Electricity Bill, or a No Objection Certificate from the owner) is also necessary.
  • Aadhar and PAN details along with photographs are necessary for all directors and partners of the business.

Renewal & Modification of Gumasta License

  • The owner needs to perform renewal work ahead of the expiration time to prevent penalty charges.
  • The license renewal system allows businesses to perform updates of business address changes or ownership alterations and employee details through modification requests.

Penalties for Non-Compliance with Gumasta License

Operating a business in Maharashtra without receiving a genuine Gumasta License (Shops and Establishment License) exposes owners to multiple serious penalties in terms of legal issues, financial matters, and operational disruption. The license applies to all commercial places related to shops and offices, as well as other establishments.

Businesses without a valid Gumasta License in Maharashtra face different types of penalties, along with several important risks.

1. Monetary Penalties

The absence of a valid Gumasta License leads businesses to face multiple financial consequences since:

  • Such violations carry initial penalties between ₹1,000 to ₹5,000 when a business lacks the required license.
  • When non-compliance continues, a business faces increased total penalty costs due to daily financial penalties.
  • The severity of fines increases as offenders continue to ignore warnings and commit the same infractions.

2. Authorities Closing Businesses

  • Businesses that do not comply may be subject to action by the Municipal Corporation or other governing body.
  • A business closure notice will be issued to the operating establishment.
  • Premises will be subject to sealing or obtaining possession until business owners meet the required standards of compliance.
  • Legal authorities will stop business functioning, resulting in financial losses for companies and frustrated customers.

3. Legal Consequences

Businesses operating unlawfully face violations of the Shops and Establishments Act, which lead to various legal consequences.

  • Government organizations start legal actions against business establishments.
  • Court-imposed penalties or criminal charges may be incurred in severe cases.
  • The process of securing future permits and regulatory approvals will become extremely challenging for business operations to expand.

4. Loss of Business Credibility

Non-compliance results in two serious consequences, including reputation damage and diminished customer trust between:

  • Customers and clients
  • Suppliers and partners
  • Banks and financial institutions

Not having the Gumasta License impairs your chances of securing financing support or joint ventures or contracts with other businesses.

5. Disqualification from Government Schemes

A valid Gumasta License guarantees eligibility for the following benefits, and it becomes impossible to receive these benefits without this license:

  • Government subsidies and MSME benefits
  • Startup or enterprise development schemes
  • Various regulatory registrations and permits

Stay Compliant. Avoid Penalties.

Your business operations will be conducted legally when you obtain or renew your Gumasta License before its expiration date.

Our Services Include:

  • New Gumasta license registration
  • Renewal of existing license
  • License modifications & updates
  • End-to-end compliance support

Need help? Get in touch with our expert team right now to maintain both compliance and penalty exemption for your business operations.

FAQs – Gumasta License

Q: Is the Gumasta License mandatory for home-based businesses?
Yes, a physical workspace with employees makes the Gumasta License mandatory.

Q: What is the process of obtaining a Gumasta License and how long does it take?
The license application typically takes 7 to 15 working days to complete once all necessary documents are submitted.

Q: Do freelance workers need to obtain a Gumasta License according to current guidelines?
The Gumasta License requirement depends on having an office or workers.

Q: Do business owners need to apply for license modification when they relocate their establishment, given that they hold a Gumasta License?
The process requires modification applications with new documentation proving address location.

Q: What are the consequences of non-renewal of my Gumasta License?
Business closure orders along with heavy fines may be issued to your operation by the municipal authorities