While setting up a commercial entity there are many compliances to be followed, one such important compliance is the Shop and Establishment license (Gumasta License).
This license is a state based labour license and is to be obtained under the Shops and Establishment Act enacted by the respective state in which the shop or establishment has been set-up. It is mandatory that you register your establishment under the shops and establishments act. All establishments other than factories need to be registered under this act within 30 days from the date of commencement of business. . It covers – shops, commercial establishments, restaurant, hotel, theatre, public amusement, and retail trade/business etc. If you do not do this, in case of inspection, you might have to pay penalties.
Documents needed for a “Shop and Establishment” license:
1. Filled up “Form A”, describing nature of operations, to be submitted at the License department of the local BMC ward office, with an Undertaking.
license fee schedule based on number of workers in the shop, For eg. Annual registration fee for shops having 1-5 employees is Rs 360, for 6-10 employees is Rs 720 ,for 11-20 employees 1200, for 21-50 employees 2400 and so on.
2. If rental property, then rent receipt, landlord NOC and rental agreement
3. If owned property, then society maintenance receipts
4. Electricity bill copy
5. Visiting/ Business cards, showing address of the enterprise
6. If you are a Professional like a Chartered Accountant, Advocate, Lawyer or a Doctor, you do NOT need a license. Exception is if the Doctor is running over 2-bed clinic.
7. If you are running a trade or a business (not a profession) with customers coming in, which may cause annoyance or nuisance to neighbours, you may need a license.
8. To “change user” from a residential room into commercial, BMC’s permission is required (Maharashtra Rent Control Act, section 30 and also MRTP Act). However if premises are part residential and part commercial, but dominant user is still residential, then there is no “change of user” and a license is not required
