Getting Your Gumasta License Online: Registration Process, Documents, Renewal, Fees & PenaltyDecember 22, 2021
Running any kind of business in India requires certain licenses and certificates. These documents are valid proof that you have successfully completed all procedures as per the requirements of central and state laws. Moreover, the licensing process is needed to ensure that businesses are in sync with regulations. Apart from generally required certificates, like a certificate of incorporation, an entrepreneur must abide by the Shop and Establishment Act by applying for a license.
Each state government has individual laws as far as the Shops and Establishment Act is concerned. In Maharashtra, a business owner must have the Gumasta License to operate a business in the state. The Gumasta License is governed by the Mumbai Municipal Corporation under the Shops and Establishment Act.
Like there are individual state laws for the shops and establishments, the general provisions across India remain the same. The Gumasta License is a mandatory requirement to run an organisation in Maharashtra for various purposes. For instance, the Gumasta License is the main document to apply for a Bank Loan, open a Current Account in the firm’s name, and GST registration. Without the Gumasta License, the business cannot avail of tax benefits under various schemes or incentives introduced by the Government of Maharashtra.
Registration Process for Gumasta License
Thanks to digitisation, you can apply for the Gumasta License online by visiting the official website. Head to https://lms.mahaonline.gov.in/ and start your application process. Once you are on the web page, click on the Create Employer User Account tab and fill in your active email address. Finish the login process by creating a password. Once you have an account, log in again to begin registration for your Gumasta License.
After logging in, you will need to click on the Shops and Establishment Registration tab. You can find the tab on the left side of the page. Click Registration Form A. You will need to upload the necessary documentation, so it is important that you have a digital copy of all the documents on your computer device. Once you have completed Form A, you will be redirected to a payment gateway. Make the necessary payments and submit your form.
Once the form is approved, your Registration Certificate will be sent to you at the email address you provided while creating your business account. If you haven’t received your Registration Certificate via email for any reason, you can download the same via the official website. Log in to your account and click the Download Registration Certificate option found on the right-hand side of the screen. Remember, you will need to submit the Registration Certificate to the respective Area Inspector within 30 days of starting the business.
Various types of business entities are required to provide some general and some specific documents as per their type of company. Listed below are the documents needed for getting your Gumasta License.
- Aadhar card, PAN card, and photos of the applicant.
- Address proofs.
- Application letter in the prescribed format.
- Authority letter for business.
- Proof of ownership of the property. If the premises is rented, you will need to produce the rent agreement.
Specific Documents for a Private Company
- Memorandum and Article of Association.
- Certificate of Incorporation.
- Company director(s)’ proof of identity and address.
Specific Documents For a Partnership Firm
- Partnership deed.
- Partnership firm’s PAN card.
- Identification and address proof of all the partners.
- Prescribed fees for a partnership firm.
Validity and Renewal of Gumasta License
The Gumasta License is valid for one year from the date of issue. Businesses can extend the validity of the license for ten years. To renew the Gumasta License, you need to visit the official website, log in with your credentials, and fill the renewal application form. You will be required to pay a certain amount of fee for renewal.
Fees and Penalty
Any business owner who fails to provide the necessary registration documents or runs an establishment without a license is subject to heavy penalties. Similarly, if their Gumasta License has expired and the establishment owner hasn’t renewed the license, a late fee of 50% of the total renewal fee will be charged.
So, if you do not want your shop or establishment to get into any kind of legal trouble, it is advised to register for the Gumasta Licence on starting a business in the state of Maharashtra. Also, remember to display the Gumasta License in your shop or business.