In the state of Maharashtra, Gumasta License is a registration required for doing or carrying out any kind of business. Governed by the Municipal Corporation of Mumbai, it is under the Maharashtra Shops and Establishment Act. The Gumasta License is a certificate that provides you with the authority to do business at a particular location. This license is a basic requirement for any business to be recognised by the bank or government, irrespective of it being carried out by a single person or a big organisation.
Possessing a Gumasta license will ensure the development of your business without various complications and is very crucial for opening a current account or procuring any loan from the bank. Every shop and commercial establishment in the state of Maharashtra uses the Gumasta license.
Each state has its own Shop and Establishment Act, therefore the shop and establishment license is different from state to state. However, the general provisions of the Act remain the state irrespective of the state. Therefore, the business owner needs to obtain the license under the Shops and Establishment Act of the state in which he carries on business.
Importance of Gumasta License
The Gumasta license is obtained by anyone who desires to open a shop or commercial establishment in the state of Maharashtra. Any employee/employer/citizen and the company can apply for the license. Moreover, every employer who has more than 20 workers under them, must also apply for a Gumasta License.
Benefits of Gumasta License
Listed below are the benefits which small business establishments can attain by registering for a Gumasta license:
- Once you register for a Gumasta license, you avail of all the tax benefits and subsidies from the government of Maharashtra available for this scheme
- This license also serves as proof of legal entity which gives you the right to carry out business in the state of Maharashtra
- Any type of business requires a business bank account in order to collect money from customers. For opening a bank account, the banks often demand the Gumasta license as proof of identity
Documents required for Gumasta license
Applicants of the Gumasta license should have the following documents in possession for the registration:
- Proof of address
Electricity bill, sale deed copy, rent agreement, gas or water bill, NOC from owner
- PAN card
- Authority letter from Mumbai Municipal Corporation
- Form A
- In case the applicant plans on starting a partnership, they must also submit the Partnership Deed along with the details of all the partners and their address proofs
- In case the applicant plans on starting a private company, you are obligated to submit the Memorandum of Association, Article of Association, and a list of all the directors with their name and address proofs
- For charitable trusts and organisations, a copy of the Reserve Bank’s letter and a copy of the Registration Certificate must be provided
- Application letter in the prescribed format