A Gumasta License, also known as a Shop and Establishment License, is a mandatory registration requirement for businesses operating in Maharashtra, India. It’s a certificate issued by the government that grants businesses the legal right to operate a physical shop or establishment. This license ensures compliance with the Maharashtra Shops and Establishment Act

As per the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, every business operating in a commercial space must register under this Act within 30 days of starting operations. The license is essential for sole proprietors, partnerships, LLPs, and private limited companies, and ensures that your business is compliant with labor laws and working condition standards set by the state.

In simple terms, if you’re starting any type of business in India that involves a physical setup—like a shop, office, or commercial unit—you’ll need the Shop and Establishment License from your respective state government. In Maharashtra, this license is referred to locally as the Gumasta License. It serves as a formal registration for your business and also plays a vital role in safeguarding employee rights.

Why is It Important to have Shop Act Registration/ Gumasta License

Registering under the Shop Act brings several key benefits:

• Legal Identity: It’s essential for proving your business’s legitimacy.
• Bank Requirements: You’ll need this certificate to open a business current account.
• Employee Protection: Ensures your workers are treated fairly under labor laws.
• Government Schemes: Helps you qualify for state and central government benefits.
• Professional Credibility: Builds trust with clients, vendors, and partners.

Who Needs to Register for Shop Act Registration/ Gumasta License

All commercial establishments operating in Maharashtra need to register, including:

• Retail shops
• Service providers
• Freelancers or consultants with offices
• Startups and small businesses
• Proprietors, partnerships, LLPs, and companies

Even if you have zero employees, registration is still mandatory.