Shop and Establishment Registration – Everything You Need to Know
Shop and Establishment Registration, also known as Gumasta License, is mandatory for all commercial establishments such as shops, offices, restaurants, and warehouses. It ensures compliance with state labor laws for fair working conditions and employee welfare.
What is Shop and Establishment Registration?
Shop and Establishment Registration, also called the Gumasta License, is governed by the state’s Shop and Establishment Act under the Labour Department. It regulates conditions of employment, wages, and safety for employees while providing legal recognition to businesses.
Why is Shop and Establishment Registration Required?
- Provides legal recognition to your business.
- Helps open a current bank account in the business name.
- Mandatory for GST and other business registrations.
- Ensures compliance with labor and employment laws.
- Prevents penalties or closure due to non-compliance.
- Required for tenders and vendor registration.
Documents Required for Shop and Establishment Registration
Documents vary slightly by state but commonly include:
Business Identity Proof
PAN & Aadhaar of Proprietor / Business / Company, Certificate of Incorporation (if applicable).
Business Premises Proof
Rent Agreement / Lease Deed / Property Tax Receipt and NOC from Property Owner.
Utility Bill
Latest Electricity or Water Bill for the business premises.
Photographs
Passport-size photographs of the applicant / owner.
Employee Details
List of employees with designation and working hours.
Proof of Activity
Invoices, existing licenses, or evidence of commercial activity.
Benefits of Shop and Establishment Registration
Advantages for your business and employees
Legal Recognition
Makes your business legally valid to operate.
Ease of Banking
Essential for opening current bank accounts.
Mandatory Compliance
Ensures compliance with labor and employment laws.
Employee Protection
Safeguards employer and employee rights.
Business Credibility
Improves reputation among customers and authorities.
Government Benefits
Access to MSME and state-level business schemes.
Ease of Expansion
Useful for other licenses and branch establishments.
Process of Shop and Establishment Registration
Online registration process through the State Labour Department
Visit Labour Department Website
Go to your state’s official Shop and Establishment portal.
Fill Application Form
Provide details such as business name, address, owner and employee info.
Upload Documents
Attach required proofs of identity, address and business documents.
Pay Government Fee
Fee varies by state and number of employees.
Verification / Inspection
Authorities verify details and may inspect your premises if required.
Receive Certificate
Registration certificate issued online; valid 1–5 years depending on state.
Frequently Asked Questions (FAQs)
All shops, offices, restaurants, warehouses, and other commercial establishments must register under this Act, regardless of business size.
Registration must be obtained within 30 days of starting the business.
Yes, even single-owner businesses without employees must register.
Validity typically ranges between 1–5 years and must be renewed before expiry.
Yes, most states allow complete online registration and certificate download.
Failure to register can result in penalties, fines, or closure by local authorities.
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