In India, each state has its own specific compliance requirements for businesses to operate legally. In Maharashtra, the Gumasta License, issued under the Maharashtra Shops and Establishments Act, 2017, is one such mandatory registration for any commercial establishment or shop. It is required for any individual or entity engaged in commercial activity within Maharashtra, including shopkeepers, freelancers, professionals, and businesses operating online or offline. The license is essential for opening business bank accounts, obtaining GST and Udyam registration, and accessing government schemes and benefits. Whether you are setting up a small grocery shop, running a freelance service from home, or managing a startup in Mumbai, a Gumasta License is essential to legitimize your business operations.
This blog offers a comprehensive guide to the Gumasta License, including its definition, necessity, benefits, application process, and other essential aspects that every entrepreneur or business owner should know in 2025.
What is the Gumasta License?
The term “Gumasta” comes from the word used in older municipal by-laws and remains widely used in casual conversation.
The Gumasta License is the local name for the Shop and Establishment Certificate issued by the municipal corporation (such as BMC in Mumbai) under the Maharashtra Shops and Establishments Act. It is a mandatory registration for:
- Shops
- Commercial establishments
- Online/offline service providers
- Freelancers
- Startups and small businesses
Legal Framework: Maharashtra Shops and Establishments Act, 2017
The Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, replaced the earlier 1948 legislation. It aims to:
- Regulate working conditions
- Define employee rights
- Ensure compliance with working hours, holidays, wages, and health and safety standards
Gumasta registration is the first step in adhering to this law.
Who Issues the Gumasta License?
The Municipal Corporation or Municipal Council of the area where the business is located issues the license. In cities like Mumbai, Pune, Nagpur, Thane, etc., it’s governed through local LMS (Licensing Management Systems) under the DoIT (Department of Information Technology).
Who Needs a Gumasta License?
Any individual or entity engaging in any commercial activity within Maharashtra must register under this Act. This includes:
- Sole proprietors
- Partnerships
- Private limited companies
- LLPs
- Professionals (e.g., consultants, designers)
- Home-based businesses
- Even those not dealing in goods but offering professional or digital services are required to obtain this license if they are earning commercially.
Advantages of a Gumasta License in Maharashtra
- Legal Recognition: A Gumasta license establishes your business as a legally recognized entity, ensuring compliance with state laws.
- Facilitates Bank Transactions: A Gumasta license is often required to open a current account or apply for business loans and credit facilities.
- Enables GST & Other Registrations: A Gumasta license acts as a prerequisite for GST, FSSAI, Udyam (MSME), and similar registrations.
- Access to Government Schemes and Subsidies: A Gumasta license allows businesses to apply for state-sponsored grants, incentives, and welfare schemes.
- Compliance with Labour Laws: A Gumasta license ensures that the company adheres to employment norms, including working hours, leave policies, and employee safety.
- Boosts Business Credibility: A Gumasta license helps in building trust among customers, vendors, and partners by demonstrating regulatory compliance.
Documents Required for Gumasta License Registration
Applicants need to furnish clear and valid copies of the following documents:
- Aadhaar Card and PAN Card (of the proprietor or partners)
- Passport-size photograph of the proprietor
- Proof of business address, such as Rent Agreement/NOC from the landlord
- Proof of ownership (Property Tax Receipt or Electricity Bill)
- Business commencement letter or declaration
- Registration certificate from applicable authorities (if applicable, e.g., Udyam, GST)
In case of a company or LLP:
- Certificate of Incorporation
- Proof of Identity and Proof of Address of the Directors of the Company
- MOA, AOA, or LLP Agreement
- Board Resolution
How to Apply for a Gumasta License Online
Step 1: Visit the Official Municipal Corporation Portal
- For Mumbai: https://lms.mahaonline.gov.in/
Step 2: Register on the Portal
- Create an account using Aadhaar, PAN, and contact details under ‘Create Employer User Account.
- After creating an account, log in to the account and click on the Shops and Establishment Registration, and then click on the Registration Form A.
Step 3: Fill out the Application Form
- Provide business name, address, nature of work, number of employees, etc.
Step 4: Upload the Required Documents
- Ensure all documents are in the required format (PDF/JPEG) and size
Step 5: Pay the Prescribed Fee
- Fees depend on the number of employees and the area of business. After paying the fee, download the Intimation receipt.
Step 6: Application Review and Inspection
- Officials may inspect the premises or verify documents virtually
Step 7: License Issuance
- If approved, the Gumasta certificate is issued online within 7–10 working days
Validity and Renewal of Gumasta License
- The license is now issued with a permanent validity unless changes are made in the business structure
- However, businesses need to keep updating their details as and when changes occur
- No annual renewal is required unless specified in updates to the Act
Common Mistakes to Avoid
- Applying Without Understanding Local Rules
- Submitting Incomplete Application Forms
- Choosing the Incorrect business category
- Using Improper or Inconsistent Business Names
- Not updating the address proof correctly
- Attaching incomplete documents
- Incorrect Details in Owner/Proprietor Information
- Not Registering Each Premise Separately
Conclusion
The Gumasta License serves as a gateway to legal company operations in Maharashtra and is more than just a formality. This license is necessary to operate a legal company. Obtaining a Gumasta licence in 2025 is easier and faster than ever, thanks to digital applications and improved processes. Make sure you follow the proper process, maintain transparency in your application, and stay informed about any updates to state-level company regulations.
