A Shop License, commonly known as Gumasta (particularly in states like Maharashtra) or Shop & Establishment Registration, is a mandatory legal requirement for any business that operates from a physical premise—be it a small shop, a restaurant, or a commercial office. It is governed by state-specific laws to regulate working conditions, hours, and employee rights.

Every commercial establishment that has a physical place of business must register. This includes sole proprietorships, partnership firms, and private limited companies. Even if you have no employees and work alone in a shop, you are still legally required to obtain this registration to prove your business is legitimate.

Beyond being a legal necessity to avoid fines, a Shop License serves as:

• Legal Proof: It acts as an official identity for your business.

• Bank Account Opening: Most banks require this registration to open a Business Current Account.

• Government Benefits: It allows you to apply for state-level subsidies and schemes.

• Avoidance of Penalties: It prevents legal action or closure notices from the local municipal corporation.

Typically, you will need:

• PAN Card of the proprietor or business.

• Aadhaar Card of the owner/directors.

• Proof of Business Address (Rent agreement if rented, or an electricity bill/tax receipt if owned).

• Photo of the Shop/Office (showing the front with the signboard).

The processing time varies by state and local municipal body, but generally, it takes 3 to 7 business days to receive the certificate after the application is filed. Many states have moved to an online system, which AccountSewa uses to speed up your approval process.