Setting up a venture and getting into an entrepreneurial journey is in the air and common in Mumbai, Maharashtra. It is important that a host of issues that may have legal implications must be addressed while setting up your business and getting a license. One such need to operate a business in Maharashtra is getting the Gumasta License. Check out its importance, features, and ways to apply.
What is Gumasta License?
Coming under Section 6(1) of the Maharashtra Shops and Establishment Act 2017, the Gumasta License is another name for the Shops and Establishment Registration. It is a necessary license required by those wanting to run a business in Maharashtra. The Gumasta License is governed by the municipal bodies in the state. The Gumasta License monitors the policy aspect of your business that includes working hours, paid leaves, dismissal rules, employee welfare schemes, etc.
Who are eligible for the Gumasta License in Mumbai?
- The business should have an annual turnover of over Rs 20 Lakh.
- At least four employees must be working for the business.
- The business should have a space of at least 25 sqm.
- The business should have a parking space.
- It should follow all safety rules, such as fire escape plan.
What happens if you don’t take the Gumasta License?
It is important to apply for the Gumasta License within 60 days of starting a venture in Maharashtra. Any business be it shop, restaurant, boutique, commercial office, etc., need to have the Gumasta License. Non-compliance will result into a legal action including levy of huge penalty.
Why is the Gumasta License important?
- Getting the Gumasta License allows businesses to avail tax subsidies in Maharashtra.
- Businesses in Maharashtra can’t apply for GST registration without having the Gumasta License.
- The Gumasta License is valid between one to five years. If expired, one should renew it for smooth running of the business.
Gumasta License: Benefits
Legal operation: With Gumasta License, businesses are under legal guidelines of the government and hence won’t have any issue.
Credibility: Having a Gumasta License adds credibility to the business.
Government schemes: With Gumasta License, one can avail various government schemes, including subsidies and incentives. It will help in the expansion of the business and give you an upper hand when you seek loan.
Gumasta License: Cost
To apply for the Gumasta License, one should pay some amount attached with it after filling in a form and submitting the required documents. This amount depends on the number of employees in a firm, the type of business, and the area where it runs. The cost for getting the Gumasta License can be upto Rs 10,000.
Gumasta License registration: Documents required
- Proof of identity: PAN card, Passport, Aadhaar card, Driving License, Voter ID
- Proof of address: Rent receipt, telephone bill, electricity bill, sale deed, property tax payment receipt, notarised leave and license, society maintenance receipt
- Copy of licence, registration mandatory under any other law from any authority before starting the business
Other documents
Copy of the licence, registration which is mandatory under any other law from any authority before starting the business.
Mandatory documents
- Annexure A Self Declaration
- Annexure B Self Declaration for Self-Attestation
- Actual photo of the establishment in which the signboard (name) of the establishment duly displayed, appears
Identity verification documents (anyone)
- ROC
- MOA (Registration Certificate)
- List of the Trustees/Member of Trust
- Registered Address and proof thereof
- Resolution of society regarding starting a business
- List of the chairman and member of co-operative society
- List of directors and nomination of directors (Resolution)
- Copy of Registration Certificate given by Charity Commissioner
- Certificate of Incorporation, Commencement Certificate under the Company Act
- Partnership Deed (upload deed pages which have name of partners, signature of partners, business/ company name, percentage of partnership)
Nature of business verification
- RBI Permission Copy
- RTO Transport Permit
- Copy of Collector Permision
- License from Agriculture Department
- Food Licence from concerned authority
- Food and Drugs Administration License
- NOC from Police Department for Cyber Cafe
- IEC Certificate for Import-Export business
- Certificate issued by SEBI for share broker
- Licence from Police Department for security services
- NOC by municipal corporation for floor mill/masala mill
- Copy of Excise License for wine shop/beer bar/bar and restaurant
- NOC from municipal commissioner, fire brigade, collector, and police department
How to register for the Gumasta License online?
- Login to the Maharashtra government’s AapleSarkar website at https://aaplesarkar.mahaonline.gov.in/en. Register on it.
- Click on ‘Registration of Shop and Establishment’ under the Labour Department.
- You will see a pop-up box. Click on ‘Apply and Proceed’.
- Choose registration type, number of workers, and fill in the form and make the payment.
- Once payment is done, the Gumasta License will be sent for approval. Once approved, you will get it on your registered e-mail ID.
How to apply for Gumasta License offline?
- Fill in the application form with details, such as business name, address, nature of business, and owner/partner details.
- Submit the necessary documents and passport-size photos.
- Pay fees.
- The form and documents will be verified by the municipal body. Once approved, you will get the Gumasta License.
Gumasta License renewal: Documents required
- Copy of the original Gumasta License
- Identity proof of business owner
- Address proof of business
- Passport-size photographs
- Payment receipt of renewal fee
How to renew the Gumasta License?
On the Aaple Sarkar portal, click on ‘Renewal of Registration Shop and Establishment’ and proceed.
How to cancel Gumasta License?
If an applicant wants to cancel his Gumasta License he should
- Send a notice stating that he wants to cancel Gumasta License.
- If the person doesn’t submit his statement with the documents within 10 days from getting the notice, his registration may get cancelled.
Housing.com Viewpoint
The Maharashtra government, to promote ease of doing business, insists on shop-owners and businessmen getting a Gumasta License. It is in the interest of people to get a Gumasata License for running a business in Maharashtra as they can claim government benefits for developing and expanding a business.
FAQs
What is the meaning of Gumasta License?
It is a legal document that business owners in Maharashtra must have to run their businesses.
What is the fee for getting a Gumasta License in Maharashtra?
The cost depends on the number of employees, type of business, and its location. The fees can be upto Rs 10,000.
How to apply for Gumasta License online in Navi Mumbai?
You can apply for Gumasta License online in Navi Mumbai by login to Aaple Sarkar website.
How many people should work in a company for it to be eligible for the Gumasta License?
At least four people should work in a company for it to be eligible for the Gumasta License.
How is Gumasta License helpful in import and export of goods?
With Gumasta License, one can import and export goods without paying heavy taxes.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |