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All you need to know about Gumasta License

Swarit Advisors

| Updated: Jan 09, 2019 | Category: Gumasta License

Gumasta License is a state permit required for doing business or any commercial establishment in the state of Maharashtra. It is also known as Shops and Establishment Act license and is governed by Mumbai Municipal Corporation under the Maharashtra Shops and Establishment Act 1948. Generally, Gumasta license governs shops as well as commercial establishments in Maharashtra.

So, in this blog, we will focus on very minute yet important features related to Gumasta License. Let us know who all are required to obtain it.

What people are bound to obtain Gumasta License?

Gumasta License is mandatory for every citizen who wants to open a new shop or a commercial establishment in the state of Maharashtra. Any citizen or company or employer who employs more than twenty employees is required to obtain Gumasta License.

Advantages of obtaining Gumasta License in Maharashtra

If you own a Gumasta License, then you can avail several advantages of it. Some of its benefits are as follows:

  • It serves as evidence of a legal entity which provides you with the right to conduct business in the state of Maharashtra.
  • There are various tax subsidies and other benefits provided by the Maharashtra State government to those who own this license.
  • When you start a business, you require a business bank account to collect money from customers. Hence, for account opening, the banks demand Gumasta License as an identity proof.

Documents required for obtaining Gumasta License

Any citizen or company who wish to obtain Gumasta License has to submit a number of relevant documents. Those are as follows:

1) Submission of address Proof like Electricity Bills, Copy or Rent Agreement or Sale Deed Copy or NOC from the Owner.

2) Pan card is also necessary for purpose of obtaining Gumasta license.

3) Authority letter sanctioned by Municipal Corporation of Mumbai is also one of the necessary documents for obtaining Gumasta License.

Registration of Gumasta License

Any person or establishment who wants to obtain Gumasta License is required to submit an application for the same. On the submission of application, the concerned officer will register the establishment in the register of establishments and the concerned officer shall issue a registration certificate along with the Labor Identification Number.

What’s the validity of Gumasta License?

Gumasta license is valid for a period of one year. However, in certain conditions, the license can be granted to the applicant for a period of up to 10 years.

Renewal of Gumasta License

Once Gumasta License is obtained, a renewal application can be submitted each year to the authority. The application must be made at least thirty days before the date of expiry of the certificate of registration for the renewal of license.

What are the requirements of Gumasta License for tourist vehicle?

Gumasta license is required for every business whether small trading business or service based business.  Any person who is operating a tourist vehicle or wishes to operate a tourist vehicle is required to obtain Gumasta license.

Cost of Gumasta License

Cost of Gumasta License varies from state to state as prescribed. You can check for the same on the official website of every state’s Shop and Establishment Act.

Conclusion

From the above discussion, it’s clear that if you’re commencing business or opening a shop in Maharashtra, then you must obtain Gumasta License. The license will help in getting legal recognition, various tax subsidies, and more. Hence, obtaining a Gumasta License is quite essential for operating a business in Maharashtra.

Swarit Advisors is one of the best consultants dealing with Gumasta License with a number of experts who are always there to help you with your queries and provide you the exact solution of the same.

Swarit Advisors

Swaritadvisors.com is technology motivated platform establishing the specialized legal & Financial advisory services in India. We are dedicated to helping startups and MNC in solving legal, Taxation and compliance related to starting and running their business around the world.

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