What is Gumasta License?

In order to conduct any kind of business in the state of Maharashtra, one must get a gumasta licence, a type of registration. Entrepreneurs need a Gumasta License in Maharashtra to launch any kind of business. According to the 2017 Maharashtra Shops and Establishments Act, the Municipal Corporation of Mumbai is responsible for regulating this licence. Gumasta License gives company owners the freedom to launch their ventures in a specific area or location in Maharashtra, India.


Who must acquire a Gumasta License?

Business owners, entrepreneurs, self-employed professionals, public and private limited corporations, sole proprietorships, partnerships, and LLPs that wish to open physical stores, hotels, or other commercial establishments in Maharashtra must obtain a Gumasta License. All companies that employ ten or more employees in a single location must have a Gumasta License. This certificate or licence aids in the regulation of employee benefits in the environment in which they operate, as well as aspects of compensation and employment law. The fundamental or necessary condition to be accepted by all the banks and NBFCs serving the people of Maharashtra is this licence or certificate.


Gumasta License or Registration Elements

     Name and the year of creation

     Business nature

     Name of the business

     Number of employees or workers

     Other relevant information and details


What the Gumasta License Means

It is necessary to register for a Gumasta licence, which is overseen by the Municipal Corporation of Mumbai, before starting a business in Maharashtra. It is a document that grants permission to engage in a particular commercial activity within the state. Regardless of whether a firm is run by an individual or a large corporation, the licence is a requirement for authorised entities like banks to recognise the operation. Therefore, in order to operate a current account, to obtain a bank loan, or to register for GST (Goods and Services Tax), a firm must have the license.


Features of a Gumasta License

All companies conducting business in Maharashtra must have a licence.

According to Subsection (2) of the Maharashtra Shops and Establishments Act, 1948, the licence is granted. To complete the GST registration, a Gumasta licence is required.After starting the business, the licence must be registered within 30 days.

The licence renewal request must be submitted 30 days before the licence expires. Documents Needed to Register a Gumasta License

To register the license, the following documentation must be provided:

Solo Entrepreneurship

PAN cards and Aadhaar cards serving as proof of the business owner’s identity

Utility invoices, such as phone and water bills, are proof of address

In the case of charity institutions, a registration certificate

Letter of authorization for business

Passport-sized images of the company owner taken recently

In the event of rented property, the rental agreement and NOC (No Objection Certificate) from the owner are acceptable forms of proof of ownership.

letter of authorization from the Maharashtra Municipal Corporation.

Firm Partnership

Partnership DeedPAN information for the business

Identity and address verification for each of the partners in the establishment

Identity and address verification for each of the partners in the establishment

The prescribed partnership firm fee

application form and the required cost for a Gumasta licence.

Private CompanyMembers’ addresses and identification documents

Memorandum of Association, Certificate of Incorporation, or Articles of Association.

Giving the trustees’ names along with the registration certificate becomes crucial when dealing with charity trusts. In the state of Maharashtra, anyone can open a bank as long as they have both the Gumasta licence and the RBI’s (Reserve Bank of India) approval to do so. For cooperative organisations, a copy of the registration certificate must be provided.


Gumasta License Benefits

Utilize tax breaks provided by the Maharashtra State Government Acts as evidence of legal status.Obtain tax breaks from the Maharashtra State Government. This serves as proof of your company’s legal status and your ability to conduct business in Maharashtra. A Gumasta licence is accepted by a number of banks as identification when opening a business bank account. Gumasta Certificate/License Cancellation


If a potential licensee or a holder of an active certificate wants to cancel the licence, they must:

Send in a note containing your statement if you want to cancel your licence or registration.

Second, the employer’s registration could be revoked if they don’t submit their statement and supporting documentation within 10 days of receiving the notice.


Fees and Punishment

Heavy fines are imposed on any company owner who fails to submit the required registration paperwork or operates an establishment without a licence. A late fee equal to 50% of the entire renewal amount will be applied if their Gumasta License has expired and the establishment owner hasn’t renewed it.


Therefore, it is advisable to apply for the Gumasta Licence while opening a business in the state of Maharashtra if you do not want your store or establishment to encounter any sort of legal issues. Don’t forget to show the Gumasta License in your store or place of business as well.


Gumasta License FAQs

How much does it cost to register for a Gumasta License?

Ans. The costs associated with registration vary from state to state, so to find out the exact amount, go to the official website of the state where you want to begin.


Is obtaining a Gumasta License required?

Ans. Yes, obtaining this licence is required if you wish to start a business in Maharashtra; otherwise, you could face fines of up to Rs. 2 lakh per applicant.


How long is a Shop Act registration valid?

The Shop Act Registration is valid for life, according to the answer.


Is there a difference between Gumasta and Shop Act Registration?

Ans. Since the word “Gumasta” is taken from the Persian language “Farsi,” where it means “agent,” there is no distinction between the two.