Gumasta / Shop Act
Registration
Mandatory license for all shops and commercial establishments. Ensure legal compliance and avoid heavy penalties.
What is Shop Act?
The Shop and Establishment Act (commonly known as Gumasta License in Maharashtra) is a state-level law that regulates the working conditions of employees in shops and commercial establishments. It is mandatory for every business operating from a physical premises to obtain this license within 30 days of commencement.
Why Choose Credorra?
Each state has its own rules and online portals. Our experts ensure your application is filed correctly with the local municipal corporation or labor department, avoiding rejections and delays.
Why is Gumasta Important?
Legal Proof
Serves as primary proof of existence for your business entity.
Bank Account
Mandatory document for opening a Current Bank Account.
Avoid Penalties
Operating without it can lead to heavy fines and sealing of premises.
Documents Required
Keep these documents ready for a smooth registration process.
Start Application- PAN Card of the Proprietor/Partner/Director
- Aadhar Card of the Applicant
- Passport Size Photos of the Applicant
- Proof of Address (Electricity Bill/Rent Agreement)
- NOC from Owner (If premises are rented)
- Business Constitution (Partnership Deed/MOA/AOA if applicable)
- List of Employees (If any)
Simple 4-Step Process
Consultation
We determine the correct category and fees for your business.
Document Collection
We collect and verify all necessary documents.
Application Filing
We submit the application on the respective state portal.
License Issued
You receive your Gumasta/Shop Act Certificate digitally.
Renewal & Penalties
Shop Act licenses are typically valid for 1 to 5 years, depending on the state. Renewal is mandatory before expiry.
- Late Fee: Penalty for late renewal varies by state (e.g., ₹500 - ₹2000).
- Sealing of Premises: Authorities can seal your shop if found operating without a license.
- Imprisonment: In severe cases, non-compliance can lead to imprisonment up to 3 months.
Employee Rights
The Shop Act also mandates certain employee rights like working hours, weekly offs, leave policies, and overtime wages. Non-compliance with these labor laws can attract separate penalties.
Credorra helps you stay compliant with both licensing and labor norms.
Common Questions
Yes, if you are operating a commercial activity from home (like an office, consultancy, or online store with inventory), you need a Shop Act license. However, some states offer exemptions for very small home-based units.
Technically yes, but many banks and GST officers ask for Gumasta/Shop Act license as proof of business address and existence. It is highly recommended to have it before applying for GST.
In most states, the license is issued within 3-7 working days after submitting the complete application online. Some states offer instant approval.
No, Shop Act is a state-specific law. You need a separate license for each state where you have a physical establishment. For example, a shop in Mumbai needs a Maharashtra Gumasta, while a branch in Delhi needs a Delhi Shop Act license.
Operate Legally. Avoid Fines.
Don't risk penalties. Let Credorra handle your Gumasta / Shop Act registration with precision.
Get Started Now