Gumasta License is a mandatory registration required for doing any kind of business in the state of India. Gumasta license is the license obtained under the Shops and Establishment Act. Every person who establishes a business needs to obtain the license under the Shops and Establishment Act of that respective state.

Each state has its own Shop and Establishment Act. Thus, the shop and establishment licence varies from state to state. The general provisions of this Shop and Establishment Act across all states remains the same. However, the business owner needs to obtain the license under the Shops and Establishment Act of the state in which he carries on business.

Gumasta License:

Gumasta License is a registration required for doing any kind of business in the state. It is governed by the Municipal Corporation under the state's Shops and Establishment Act. This is a certificate which provides you the authority to do your business at a particular place. This license is a basic requirement for any business to be recognized by Government or Bank for all business irrespective of whether it is done by a single person or big organization.

Obtaining Gumasta ensures your business can be developed without many complications and it is very important for opening a current account or obtaining any loan from the bank. Without this license in the State, obtaining GST registration is not possible.

Documents Required to obtain a Gumasta License :

Listed below are the documents required for the registration, apart from the general documents there are certain specific documents required to be submitted for Partnership and Company which are given below

General/Sole Proprietorship:-

1. Aadhar card/ Pan Card/ photo

2. Address proof (like Electricity bill)

3. Application Letter in the prescribed format

4. Authority letter for business

5. Proof of ownership of Property

Partnership:-

1. Partnership Deed

2. Partnership Firm’s Pan

3. Partner’s ID proof – Address and Identity

4. Prescribed Fees for a partnership Firm

Private Company:-

1. Memorandum and Article Of association

2. Certificate of Incorporation

3. Company Director’s ID proof – Address and Identity

Advantages of Applying for Gumasta License:

Listed below are some of the benefits which small business can attain by registering for Gumasta license:

Once you register for Gumasta license, you can avail for all the benefits and tax subsidies from the State Government if available for this scheme.

It serves as a proof of legal entity which gives you the right to conduct business in the State.

Any business would require a business bank account to collect money from customers. Most banks demand the Gumasta license as proof of identity to open a business bank account.

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