Shop and Establishment (Gumasta License)
As per the Shop and Establishment Act the term Establishment means a shop or commercial establishment. It includes theatres, restaurants, eating joints, places of amusement, shops and other commercial establishments across the country and the term shop means any premises where goods are sold by either retail or wholesale or services rendered to customers, however this term doesn’t include any factory. The Shop and Establishment Act, implemented by the Ministry of Labour,
The Shop and Establishment Act was implemented to ensure their rights and working conditions are well within allowed limits. The rules of Gumasta License are different from state to state therefore the rules must be followed according to the state. The Registration Certificate can be either obtain from Chief Inspector of the area where the establishment runs.
This act is executed in order to regulate the conditions of work, provide for statutory obligations of the employers and to administer the rights of the employees in the unorganized sector and other establishment in their jurisdiction. This act basically includes amendments and laws relating to regular payment of wages, hours of work, leaves, holidays, workplace safety etc.
Requirement of Shop & Establishment Act
Every shop and establishment is required to register within 30 days of commencement of business, whether or not it has employees and is valid for a year which is to be renewed on yearly basis. Every establishment is required to obtain this license even if there is no physical shop and the business is being operated from home. A copy of this license is required for many official purposes during business operation, from loan application to as simple as opening of a current account.
To apply for Gumasta License you need to file the application with details including name of employer, category of establishment, its address & the number of employees. Gumasta License is mandatory, if any establishment which does not obtain registration under Shop & Establishment Act is liable to pay penalty which is differ from state to state. Normally new business Owner get Shop & Establishment Registration for opening a Current Account.