Shop Act Licence (Gumasta Licence): Latest News, Registration and Renewal

March 23 00:28 2021
Shop Act Licence (Gumasta Licence): Latest News, Registration and Renewal

Shop Act Licence (Gumasta Licence) is a type of registration required to do any kind of business in the state of Maharashtra.
The Shop Act Licence (Gumasta Licence) registration is a state-based registration required while establishing a hotel, shop, or any commercial place. It is relevant for every new shop/establishment to get it registered under the Shops and Establishment Act. You can get a license within 30 days from the commencement of the work. The validity of the Shop Act Licence (Gumasta Licence) is for one year and it can be renewed every year.

Shop Act Licence (Gumasta Licence) in India

Let’s talk about detail in India is one of the top five locations that have the fastest-growing retail market all over the world. In the year 2003, India was having a very minimal amount of shops which were majorly holding small scale business. But since the year 2010, the number of shops has been increasing in huge supermarkets and convenience stores.

In India, The Shop Act Licence is named with several other names such as in few states it is called Gumasta, somewhere in another state it is known as Ghumasta and in few states it known as Shop Act License.

Yearly thousands of shops get registered in India, along with that it is necessary for the Shop Owners to take a Shop Act license for the betterment of the employees.

What is a shop and Establishment License?

The Maharashtra shop and establishment in 2017 it is expedient to provide for the regulation of employment and other conditions of service of workers employed in shops, residential hotels, restaurants, eating houses, theatres, other places of public amusement or entertainment, and other establishments and for matters connected therewith or incidental thereto.

The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 came into force on March 23, 2018. The shop and Establishment act 2017 replaces the Maharashtra Shops and Establishment Act 1948.

The 2018 Rules will ease doing business in Maharashtra, it promotes transparency, brings clarity to the implementation of the state Shops and Establishment Act, introduces ease of compliance, it provides workplace safety and welfare, especially for women workers.

Objective of the Shop and Establishment, 2018

In this Act to provide certain rule and regulation of conditions of employment and the objective is to secure the uniform benefit to workers who employed in shops, residential hotels, restaurants, eating houses, theatres, other places of public amusement or entertainment and other establishments.

Applicability of Shop Act

Based on the place of business the applicability of the Shop Act will be as follows:

If business premises are located within Municipal Corporation limits, Nagar P then Shop Act is applicable.

If business premises are located in Gram Panchayat then Shop Act is not applicable.

If an establishment has employed 0-9 employees then they will have to apply for Shop Act Intimation

If an establishment has employed more than 9 employees then they will have to apply for Shop Act Licence (Gumasta Licence)

If an establishment has already employed 0-9 employees and later if the employees Exceed more than 9 then they will have to apply for Shop Act Licence (Gumasta Licence).

Premises Regulated by the Shop and Establishment Act

What is a Commercial Establishment?

Commercial establishment means an establishment which carries on, any business, trade manufacture or any journalistic or printing work, the business of banking, insurance, stocks and shares, brokerage or produce exchange or profession or  trade or profession or manufacture and it  includes the establishment of any medical practitioner (including hospital, dispensary, clinic, polyclinic, maternity home, and such others), architect-engineer, accountant, tax consultant or any other technical or professional consultant; and also includes a society registered under the Societies Registration Act 1860, and charitable or other trusts,

What is Shop?

It means that any premises where goods are sold, either by retail or wholesale or where services are provided to customers, and includes an office, a storeroom, godown, warehouse, whether in the same premises or otherwise

What is Residential Hotel?

It means that any premises used for the reception of guests and travelers desirous of dwelling or sleeping therein and includes residential club

What is Restaurant or eating house?

It means that any premises, in which, wholly or principally the business of the supply of meal or refreshments to the public or a class of the public for consumption on the premises is carried on

What is Theatre?

It includes any premises intended principally or wholly for the exhibition of pictures or other optical effects by means of a cinematograph or other suitable apparatus or for dramatic performances or for any other public amusement or entertainment

Benefits of Shop Registration

1. Once you register for Shop Act Licence (Gumasta Licence), you can avail of all the benefits and tax subsidies from the Maharashtra State Government available for this scheme.

2. It serves as 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 Shop Act Licence (Gumasta Licence) as proof of identity to open a business bank account. (HDFC, SBI, Bank of Maharashtra)

Also know: How to register for MSME Certificate


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Company Name: SHOP ACT Registration Consultancy Services
Contact Person: Vishal Satpute
Email: Send Email
Phone: +91 8484900992
Address:Office No. 101-102, 1st Floor, Gulmohar Apartments, East Street, Camp
City: Pune – 411001
State: Maharashtra
Country: India