Shops and Establishment Licence: Definition, Meaning & Guide for Indian Businesses

Shops and Establishment Act licence (also called Gumasta in Maharashtra) is the state-level registration every shop, office and commercial establishment in India needs within 30 days of starting operations.

What is Shops and Establishment Licence?

The Shops and Establishment Act is enacted by each Indian state separately, so the exact name and process varies — Gumasta in Maharashtra, Trade Licence elsewhere. Any shop, office, restaurant, godown, or commercial premise hiring even one employee must register within 30 days. The licence covers working hours, holidays, leave policy, child labour and basic working conditions. Apply at the state Labour Department portal. Required for: opening a current account, signing commercial leases, getting GST registration, getting trade-related government tenders. Annual renewal is typical though some states issue 5-year and lifetime variants.