Shop Act License (Gumasta)

Shop Act License also called a Shop and Establishment Certificate is the registration of your new shop, hotel, or any other commercial place of public amusement or entertainment. It is mandatory for every owner of a newly opened shop, hotel, etc, to get registered its place under the Shop and Establishment Act.


Shop Act License (Gumasta)

  • Application for Shop Act License
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The Shop Act License is known with several other names such as in few states it is called Gumasta. This act provides you the specialist to do your business in a particular area. This act is introduced to control the installment of wages, long periods of working, leaves, holidays, and other work states of individuals utilized in shops and business foundations. In addition to this, it also makes sure that the employee can get every benefit that is required and enjoy their rights such as interval holidays, premise surroundings. It also looks into the matter of hygiene issues related to the works in that particular area where the premise is located, leaves granted to the workers, sickness of workers, etc.


Every year nearly more than thousands of shops get registered in India, along with this it is necessary for you as the owner of the shop to take the Shop Act License for the betterment of your employees. This permit or the Gumasta is very important for any kind of business to be provided by the government of India or the Indian banks regardless of whether it is furnished by a solitary individual or an enormous association.


A person wants to apply for the Shop Act License requires the following documents:

● PAN(Permanent Account Number)card / Adhaar card / Driving license / Voter ID card as identity proof

● Photo of the owner 

● Photo of the owner along with its shop/company

● Rent agreement in case the shop is rented

● Bill of electricity consumed by the shop

● ROC(Registrar of Companies)

● MOA(Memorandum of Association)

● List of all the members of the trust 

● Registered address along with a proof

● Reviews of the surrounding society regarding the starting of your business there

● List of chairman along with the members of the co-operative society

● List of directors and nominated directors

● Copy of the registration certificate given by the charity commissioner

● Certificate of Incorporation along with the commencement certificate under the Company Act

● Partnership deed contains all details such as the name of the partner, company name, signature of the partner, percentage of partnership

● RBI(Releve identity Bancaire) permission copy

● The permit from RTO(Regional Transport Office)

● Copy of collector permission

● License from the Agricultural department

● Food license from the concerned authority

● The food and alcohol Administration license

● No objection certificate from the police department for cybercafe

● License from the police department for security purposes

● IEC(International Electrotechnical Commission) certificate for import-export business

● Certificate issued by SEBI(Securities and Exchange Board of India) for share brokers

● No objection certificate by the municipal corporation for flour mill and masala mill

● Copy of excise license for wine shop, beer bar and restaurant

● No objection certificate from the municipal commissioner, fire control department and collector 


           Obtain all the documents required as mentioned above.

           Fill up all the necessary information in the application form as per the required act.

           Take the signatures of the employee and owner 

           Next attached a photograph with a staple if required 

           Attach the necessary document with the form very carefully as per the requirements mentioned above 

           Submit the application form in the Shop Act License Department Of Municipal Corporation of the specific city.

           After verifying your documents if required the officers from the Shop Act License Department may visit the place where the shop is going to be established. 


● After you obtain a shop act license if there is any change that you want to make then it must be notified to the Chief Inspector.

● You must obtain the Registration Certificate within 90 days of the commencement of the business.

● It is mandatory for the placement agencies, who provide domestic services, also to register themselves under the Shop and Establishment Act.

● You will have to pay a penalty if for any reason you fail to obtain the Shop Act License and running an unregistered business under the shop and establishment.


           To the Business:-

●     Schemes of the Government: Once your business is registered under the shop act license it will be considered eligible for all the benefits and tax subsidies that are offered by the government.

●     Proof of Legal Entity:  After you, your business has received the Gumasta certificate it will give your business proof of legal entity, therefore, your business will be provided with legal authenticity and authorization for running the business in that area.

●     Bank Transactions: All the banks need at least one entity proof to open a bank account. this license will play that role and if your business requires any kind of financial assistance in the form of a loan Shop Act license will be preferred. 

II.To The Government:-

●     Extra Income to the Municipal Corporation: From Gumasta registration process the municipal corporation earns some extra income through the prescribed fee they charge for granting the shop act license, the penalty paid by the owner of non – registered business, and renewal fees.

●     Helps in keeping Records: Gumasta registration acts as a helping hand for the government to keep records. These records help in different government and department procedures and avoid fraudulent acts by the business. These records are also helpful in the time of policy making. 

III.To The Employees:-

●      Opening Hours of the shop: The government fixes the opening hours for different types of shops depending on the type of business and different areas. 

●     Closing Hours of the shops: All the shop except the shops the sell bidi, cigarettes, matches, and other ancillary articles must be closed by 8:30 p.m. and those selling bidi and cigarettes must be closed by 11 p.m. 

●     Before opening and after closing hours of shop hawking is prohibited.

●    Every day the employees working in any shops and commercial areas must be given at least 1 hour of the rest interval. The continuous work of employees must not exceed more than 5 hours. If the employees work in a manufacturing process the rest interval should be provided for at least half an hour.

●     The spread over of employees will not exceed more than 11 hours in a shop or establishment. In premises where the place has entirely closed the spread over must be more than three hours.

●     The employer must visit the shop or establishment at least once a week to check everything. The calendar dealing with the list of holidays of the whole year must be given at the beginning of the year to the employees. if any further changes with holidays are made then they must be conveyed to the employees as soon as possible.

●     Separate rules are made for the opening and closing hours of hotel restaurants and eating places where their speed overs, rest intervals, and holidays are maintained differently.

●     All the employees must be provided an ID card containing the name of the employee, postal address, the age of the employee, hours of work and rest interval, etc by the employer with the signature of the employer. The ID card is a must for all the employees working in the places of public amusement.

●     Child who has no attained the age of 18 is not allowed to work in any shop or establishment.


The Gumasta/Shop Act License id valid for one year depending upon your needs you can extend it for ten years. You must apply for the renewal at least 15 days before the expiry of 30 days after the expiry.

Following are the steps to be followed to renew your license;

1 visit the MCGM() portal. 

2 Provide all the necessary details related to your establishment 

3 Upload the required documents on the portal 

4 pay the required fee online through net banking or debit/credit card 

5 Apply to renew the license 

You can check the status of your application whether it is accepted or not. If accepted then finally you can download the renewed registration certificate of Shop Act License.

The Shop and Establishment Act License is a very basic necessity of a person who wants to establish his / her business in a particular area in India. This Gumasta license will be helpful for you in all the stages of business registration in India and it mandatory for you to have a shop act license to carry out a day to day business so you should never forget to get a Shop Act License for your business.


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