The Shop and Establishment License (also called Gumasta License in some states) is a mandatory registration for any commercial establishment, including shops, offices, restaurants, hotels, and other places of business, under the respective State Shops and Establishments Act. It regulates working conditions, hours of work, and employee welfare, and serves as basic proof of business existence for opening bank accounts and other registrations.
Who needs it: shops and retail outlets, restaurants, hotels and eateries, offices of service providers and consultancies, and any establishment employing workers, whether or not it deals in goods.
Applications are filed online through the state labour department portal in most states, including Delhi, with fees based on the number of employees.
Answers to the questions we hear most often about Shop and Establishment licensing in Delhi NCR.
It depends on the state and nature of the business. Many states require it for any commercial activity, even home-based, once it crosses a minimal threshold.
Validity varies by state. Delhi typically issues it for 5 years, though some states require annual renewal.
No, they are distinct: a trade license is issued by municipal corporations for specific trades, while the Shop and Establishment License is a labour law registration.
Fines and potential closure notices, varying by state, for operating without a valid registration.
Digitax Consultancy was founded on April 1, 2011, by Vishwa Jeet Dwivedi and Amit Kumar Jha, two visionaries with a passion for simplifying financial services.