Gumasta License (Shop act )

Why is a Gumasta License Required?

It legally allows you to:

·         Run a shop, office, or commercial business

·         Open a current bank account

·         Apply for GST registration

·         Get business loans

·         Act as legal proof of business

It also regulates:

·         Working hours

·         Weekly holidays

·         Employee wages

·         Leave policies

·         Workplace conditions

Who Needs a Gumasta License?

You need it if you operate:

·         Retail shops

·         Wholesalers

·         Online businesses

·         Freelancers / consultants

·         Small offices

·         Startups

·         Cafes, salons, coaching classes

·         Home-based businesses (in most states)

Even 1-person businesses usually need it.

Listed below are some of the benefits which small business can attain by registering for Gumasta license:

1.   Once you register for Gumasta license, you can avail for all the benefits and tax subsidies from the Maharashtra State Government available for this scheme.

2.   It serves as a proof of legal entity which gives you the right to conduct business in the Maharashtra State.

3.   Any business would require a business bank account to collect money from customers. Most banks demand the Gumasta license as proof of identity to open a business bank account.

1. Sole Proprietorship / General Business

      Document                                             Details

   Identity Proof                                   Aadhaar Card / PAN Card / Passport / Voter ID

 Address Proof (Owner)                     Aadhaar / Passport / Driving License

 Business Address Proof                   Rent Agreement + Electricity/Water/Property Tax Bill OR Ownership Proof

NOC from Property Owner                Required if rented premises

Business Details                                Name, nature of business, date of commencement, number of employees

Passport-size Photo                          Owner’s photo

2. Partnership Firm

    Document                                              Details

Identity Proof                                    Aadhaar / PAN / Passport of all partners

Address Proof                                   Aadhaar / Passport / Driving License of all partners

Business Address                             Proof Rent Agreement + Utility Bill OR Ownership Proof

NOC from Property Owner                Required if rented premises

Partnership Deed                              Signed copy of partnership deed

PAN of Partnership Firm                   Mandatory for registration

Business Details                              Name, nature, date of commencement, number of employees

Passport-size Photo                         All partners

3. Private Limited Company

     Document                                          Details

 Identity Proof                                  Aadhaar / PAN / Passport of Directors

 Address Proof                                 Aadhaar / Passport / Driving License of Directors

Business Address                            Proof Rent Agreement + Utility Bill OR Ownership Proof

NOC from Property Owner               Required if rented premises

Certificate of Incorporation               From Ministry of Corporate Affairs (MCA)

Memorandum & Articles of

Association (MOA & AOA)                   Mandatory

PAN & TAN of Company                      Mandatory

Board Resolution                                  Authorizing the Director to apply for Shop Act

Business Details                                   Name, nature, date of commencement, number of employees

Passport-size Photo                               Directors

1. Legal Recognition
Acts as proof that your business is registered legally.
Protects your business from legal issues with local authorities.

2. Required for Opening Bank Account
Banks usually ask for Shop Act License to open a current or business account.
Helps in smooth financial operations.

3. Mandatory for GST Registration
Without Shop Act, you cannot register for GST (Goods and Services Tax) in most states.
GST registration is necessary if your turnover exceeds the threshold limit.

4. Business Loans & Funding
Banks and financial institutions require legal business documents like Shop Act to approve loans.
Also helps in applying for government schemes for small businesses.

5. Compliance with Labor Laws
Helps in regulating working hours, wages, and holidays for employees.
Ensures your business operates according to labor rules.

6. Builds Customer Trust
Customers feel confident dealing with legally registered businesses.
Improves business credibility and professional image.

7. Low Cost & Easy Process
Compared to other registrations, Gumasta is cheap and fast to obtain.
Easy to renew or update business information.

8. Helps in Expanding Business
Required for selling goods legally, opening shops, or starting online sales.
Helps in contracts with suppliers or government entities.

·         Monetary fines

·         Legal notices

·         Business closure orders (in extreme cases)

·         Difficulty in opening bank accounts or getting GST

•  Sole Proprietorship is the simplest and requires the fewest documents.

•  Partnership requires a Partnership Deed and PAN of the firm.

•  Private Limited Company requires incorporation documents, MOA/AOA, PAN/TAN, and a board resolution.

•  All types need proof of business address and NOC if rented.