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While the entrepreneurial world looks exciting and full of promises, it is also a world that requires lot of planning and an effective execution of the plans, such as business plan, leverage options, organizational structure etc. Also, apart from the detailed planning and its execution, it also demands to cater for legal obligations and compliances in the very beginning itself in order to have a smooth and hassle free journey throughout and if you are planning to try out your luck in the state of Maharashtra, apart from the common obligations and compliances, there is one addition to your list of to-do i.e. Gumasta license.

Gumasta License - To Start any business in the state of Maharashtra

Importance of Gumasta license

Gumasta license is a mandatory license or certificate which one needs to acquire in case he wants to start any business in the state of Maharashtra. Governed by the Municipal Corporation of Mumbai under the Maharashtra Shops and Establishment Act, Gumasta license provides you the authority to do or start your business at any place in Mumbai. However, once and if you decide to close or shut down your shop or commercial establishment, it is important for you as a owner must and should inform the Chief Inspector within 15 days of ending operations. Once you have submitted your application for the closure, it will be reviewed by the Chief Inspector and once reviewed, he will go ahead and remove the shop or establishment from the official register and cancel the Gumasta license of the business or establishment in picture.

As per the Maharashtra Shops and Establishment Act, it is mandatory to get your shop or business registered and also to obtain the certificate of registration from the municipal corporation and it is more of a legal obligation which you have to follow rather than taking it as a business procedure. In case you haven’t obtained Gumasta license from the municipal corporation of your area, not only it will have legal implication and consequences but also takes away the chance of your business being recognized both by the government and the banks i.e. Gumasta license is a basic and mandatory requirement for your business to be recognized both by the government and the banks, irrespective of the size of your business. Although obtaining Gumasta License is mandatory for every shop and business in the state of Maharashtra, it becomes even more important and mandatory if you are having 10 or more employers in your organization, unless you are in the list of businesses exempted from the Maharashtra Shops and Establishment Act, for example if you are planning to open a shop dealing in items such as meat, fish, poultry, eggs, dairy produce, bread, confectionery, sweets, chocolates or if deals with establishing stalls and refreshment room at public place such as railway stations, bus stands or at commercial places such as ports. Also if you plan to establish your shop in real estate such as building clubs, residential hotels, boarding houses or hostels associated to schools and colleges for their students etc, then you are exempted from the mandatory requirement of applying for a Gumasta License.

Process To Get Gumasta License

Gumasta License, as mentioned above, is a mandatory certificate and is must for everyone and one need to keep the following documents ready:

  1. Aadhar Card
  2. PAN Card
  3. An address proof i.e. electricity bill or an No-Objection Certificate from your owner.
  4. Application form in the prescribed format to the Municipal Corporation of Greater Mumbai.
  5. Authority letter for the business.
  6. Photo (20KB to 30 KB)
  7. Signature (9KB to 15 KB)
  8. Form-A which is an application for Registration within 30 days of starting any work to the inspector of the area.
  9. Government Prescribed Fees for a partnership Firm.
  10. Partnership Deed, in case of partnership.
  11. Pan Card of the Partnership Firm.
  12. Partner’s ID Proof and address proof.
  13. Memorandum and Article of Association, in case of private company.
  14. Certificate of Incorporation, in case of private company.
  15. Company Director’s ID Proof i.e. address and identity, in case of private company.

In order to obtain Gumasta License from the concerned authority, one can opt both for the online and offline procedure, as per the steps mentioned below:

Offline Procedure of Registration

While most of the entrepreneurs chose to opt for the online route for obtaining Gumasta License, few of them still go through the offline route. Follow the below mentioned steps to apply for Gumasta License or certificate:

  • Fill up the application form in the specified format and submit the same to the concerned inspector of your area along with the following details:
    • Name of the employer and the manager.
    • Postal address of the establishment.
    • Name of the establishment.
  • The application form has to be submitted with the specified fees, which varies as per the size of your business i.e. the number of employees in your shop or establishment.
  • Once your application and fees is received, the appointed authority will review your application and if information entered is found right, authority will register your business and provide registration certificate to the employer.
  • It is important to keep the registration or Gumasta certificate at your workplace or shop or establishment.

Online Registration For Gumasta License

  1. Visit the official website http://www.mcgm.gov.in
  2. Click on the “Citizen Service” button and switch to Shops and Establishment tab and select the registering procedure as individual or organization.
  3. Provide your mobile number and email and complete the OTP verification and obtain portal access.,
  4. Once you switch to Shops and Establishment tab, it will direct to a new tab. Select “Apply for registration” and then select “more” on the next page.
  5. Click on the “Shop and Establishment Registration” where you will be presented with couple of options.
  6. Click on the “Add” option and fill up the form and pay the applicable fees. Once you pay the fees, you will get a Challan Number, which you would be required to enter in the form.
  7. Once you are done with the above mentioned steps, click on the “Submit” button and doing so, you will get a system generated UTN number.
  8. Once you have submitted the form, print the filled form and submit it at the Gumasta office along with the relevant documents as mentioned above.

Once you have submitted your application for obtaining Gumasta License, you can check the status of your application by following the below mentioned steps:

  1. Once your application is submitted, the status will show “under scrutiny”, which means that your application is under processing with the concerned officer. Similarly, once the details are verified and application is processed, the status of your application will change to “Approved”.
  2. You can track the status of your application either by visiting the nearest Citizen Facility Centre (CFC) or by clicking on the “status” facility available on the citizen portal on the official website.
  3. Once Gumasta License is normally valid for a period of 1 year and could be extended for a period of upto 10 years.

In case you have either lost your Gumasta License or want to make certain changes in the present one, you can do so by following below mentioned steps:

  1. Visit the official website https://lms.mahaonline.gov.in/
  2. On the home page, you will be asked to select the service for Shops and Establishment. Make sure that you select Shop Register, because you are an old user and fill up the application using earlier details and submit the form.
  3. Once you have done so, you have to enter your application ID in order to make the necessary changes in the Gumasta License and reapply.
  4. Upload the relevant documents as asked and in the specified format.
  5. Click on Check Status, which will further direct you to payment section. ON the payment page, you can make the required fees using various payment methods such as net banking, credit card, debit card etc.
  6. Make the necessary payment. Once done, your status will be updated to “under scrutiny”
  7. You can revisit the website as and when desired and keep a check on your Gumasta license and the desired amendments.

Advantages of Applying for Gumasta License:

If you have obtained Gumasta License for your business or shop, it provides recognition of your business both by the bank and the government; however, it also has numerous benefits to its holders, such as:

  • Once you have registered for Gumasta License, you are eligible to avail all the benefits and tax subsidies from the Maharashtra State Government as applicable.
  • Gumasta license provides a legal entity to your business, which implies that it gives you the right to conduct business in the state of Maharashtra.
  • It also gives you a valid ground to have or open a business bank account because having a business bank account is must in order to conduct any kind of business transaction amount of money and since all banks ask for one minimum legal entity proof in order to open a business bank account, furnishing Gumasta License would serve the purpose.

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