The Gumasta License, officially referred to as the Shop and Establishment Registration, is a crucial legal document that allows businesses in Maharashtra to operate lawfully within municipal limits. The license is governed by the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, which replaced the 1948 Act and came into effect from December 20, 2017. This Act applies to all shops and commercial establishments employing ten or more workers. However, for those employing fewer than ten workers, intimation and basic registration are still required under the Act.

The purpose of the license is to regulate the working conditions of employees in shops, commercial establishments, hotels, eateries, theatres, and other places of public entertainment. It governs employment terms, work hours, holiday benefits, overtime, maternity leave, and health and safety measures, ensuring that employee welfare and operational transparency are maintained.

In this article, CA Manish Mishra talks about Gumasta License in Maharashtra for Businesses.

Legal Provisions and Regulatory Framework

The Maharashtra Shops and Establishments Act, 2017 covers several key provisions that all employers must adhere to:

• Section 4 to Section 7: These define registration obligations. Every establishment must apply for registration within 30 days from the date of commencement of business.

• Section 8: Mandates notification of any change in name, address, ownership, or business type within 30 days.

• Section 9: Governs renewal and cancellation of the registration certificate.

• Section 13 to Section 22: Cover the terms and conditions of employment, including:

  • Maximum working hours: 9 hours/day and 48 hours/week.

  • Weekly holidays: One day of rest per week is compulsory.

  • Overtime: Maximum of 125 hours per quarter with double pay.

  • Leave: Minimum of 8 paid casual leaves, 5 sick leaves, and 1 earned leave for every 20 days worked.

  • Women employees: Restriction on night work between 9.30 PM to 7 AM, unless special permission is granted.

The Act empowers Labour Commissioners, Inspectors, and designated officers to ensure that the business adheres to statutory norms, especially concerning the health and safety of employees, fire prevention measures, and sanitation.

Application and Registration Process

Businesses can apply for the Gumasta License either online through the MahaEase online portal (Maharashtra Labour Department’s website) or offline at their local Municipal Corporation office. The process includes the following steps:

• Create an Account: The applicant must register as a user on the official government portal using a valid mobile number and email ID.

• Submit Online Form: Fill in business details including the nature of the establishment, number of employees, employer details, and date of establishment.

• Upload Required Documents:

  • PAN and Aadhaar of the proprietor/partners/directors.

  • Proof of business address (electricity bill, property tax receipt, or rent agreement with landlord NOC).

  • Certificate of Incorporation (for companies), partnership deed (for partnerships).

  • Photographs of the premises.

• Fee Payment: Registration fees vary based on the number of employees and municipality guidelines. Typical fees range from ₹1,000 to ₹10,000.

• Approval and Issuance: Once documents are verified, the Gumasta License is issued online in PDF format and can be downloaded for display.

The entire process usually takes 5–15 working days if all documentation is correctly submitted.

Validity, Renewal, and Modification

The Gumasta License, once issued, is typically valid for a period ranging from 1 to 10 years, depending on the fee paid at the time of registration. Business owners must renew their license at least 30 days before its expiry to avoid penalties.

Any modification in the constitution or particulars of the business—such as change in business name, ownership, address, or number of employees—must be reported to the registering authority within 30 days. Failure to update changes can lead to cancellation of registration.

To renew the license:

• Visit the online portal.

• Login with your credentials.

• Select “Renew Application” and update details, if necessary.

• Pay the applicable fee.

• Download the renewed certificate after approval.

Penalties and Enforcement

Failure to obtain a Gumasta License is a punishable offense under the Maharashtra Shops and Establishments Act. Operating without a license or with expired registration can lead to:

• Fines ranging from ₹1,000 to ₹5,000 for first-time offenses.

• Higher fines (₹10,000 or more) for repeat violations.

• Closure notices from the Municipal Corporation or Labor Office.

• Rejection of applications for utility connections, bank loans, GST registration, or Udyam/MSME certification.

Additionally, non-maintenance of employee records or violating working hour regulations may attract penalties and could also lead to lawsuits or employee complaints before the labor court or inspector.

Recent Updates and Digital Reforms

In line with the Central Government’s Ease of Doing Business initiatives, the Maharashtra government has undertaken several measures:

• Self-Certification: Employers with less than 10 workers can now file self-declaration forms online and need not submit physical books of accounts.

• Single Registration ID: Integration with Udyam Registration and GSTN databases ensures no duplication of registration data.

• Elimination of Annual Returns: Simplified filing norms for small businesses by eliminating the requirement of periodic returns.

• Digital Download: Gumasta certificates can now be stored and presented digitally via DigiLocker or the official portal, reducing paperwork.

These initiatives are designed to encourage small businesses, reduce bureaucratic hurdles, and promote transparency and formalization of business activities.

Importance of Gumasta License for Entrepreneurs

Apart from legal compliance, the Gumasta License serves as proof of business establishment for multiple purposes. It is required for:

• Opening a current account in a business name.

• Registering under GST or Udyam (MSME).

• Obtaining health trade licenses, fire safety NOC, FSSAI licenses, and more.

• Participating in government tenders or vendor onboarding for e-commerce platforms.

Most importantly, the license adds legitimacy to your business, builds customer trust, and ensures access to government schemes and tax benefits.

Conclusion

The Gumasta License is not just a legal obligation but also a foundational document for doing business in Maharashtra. It signifies that a business operates in compliance with labor laws, offers safe working conditions, and respects employee rights. The licensing process has become more streamlined with online facilities, single-window clearances, and real-time approvals. However, business owners must remain vigilant about renewals, amendments, and maintaining necessary registers to stay compliant and avoid penalties. Whether you're a startup, trader, freelancer with an office setup, or a growing company—securing and maintaining your Gumasta License is essential for lawful, sustainable, and credible business operations in Maharashtra.