Shop Act
What Is Shop Act
The Shop and Establishment Act, commonly known as the Shop Act License or Gumasta License, is a mandatory registration for all businesses operating in shops, offices, restaurants, hotels, and commercial establishments in India. It is regulated by the state government and helps monitor working conditions, employee rights, wages, and business operating hours.
Who Needs a Shop Act License?
1 Retail shops (Grocery stores, Clothing stores, etc.)
2 Wholesale businesses
3 Restaurants, Cafés, Hotels, and Eateries
4 IT Companies, Offices, and Co-working Spaces
5 Service-based businesses (Salons, Coaching Centers, Travel Agencies)
6 Freelancers and Work-from-Home Businesses (for Business Bank Account)
Benefits of Shop Act Registration:
Legal Recognition – Gives official recognition to your business.
Helps in Opening a Business Bank Account – Required by most banks.
Enables GST Registration – Required for GST application.
Ensures Employee Welfare – Regulates working hours, wages, and leave policies.
Essential for Business Expansion – Needed for government tenders and funding.
Avoids Legal Penalties – Prevents fines and business closures due to non-compliance.
Documents Required for Shop Act License:
Business Owner’s PAN & Aadhar Card
Electricity Bill or Rent Agreement (for business location proof)
Passport-Size Photo of the Owner
Business Registration Certificate (if applicable)
Employee Details (if any)
Food License (if running a food-related business)