If you are starting a new business, lets say you will need a important licence, which is Shop act Licence or it is called as Gumasta License . Basically in India when you start any type of the business with physical shop then business requires the Shop Act Licence/Gumasta license from your state authority. Gumasta License was introduced to look after the employee’s rights and another establishment in the jurisdiction. It is necessary to apply for Gumasta while establishing a shop, hotel or any other commercial place. It also helps to regulate the betterment of employee such as in which condition does he works, payment, rules and provide maximum benefits for the employees. The shop and establishment registration should contain following details such as name of the employer and manager, name of establishment, nature of business, number of workers and such other details as may be prescribed. The Facilitator shall issue to the employer of such Shop establishment a receipt of intimation in such form and manner as may be prescribed.
KEY FEATURES OF THE NEW SHOP ACT LICENCE?
Hours of operation
Certain businesses in Maharashtra may now stay open 24/7. This includes movie theaters, restaurants, financial institutions, medical practices, and retail outlets. The Act excludes any establishment which sells alcohol or cigarettes from remaining open passed existing deadlines.
Working hours for women
The Act allows female workers the ability to work work passed 9:30pm so long as their employer provides safe transportation from the work site to their residence. Protection of women – The Act prohibits the discrimination of women workers in matters of recruitment, training, promotion, and wages. Generally, women workers will be required to work only between 7 a.m. and 9:30 p.m. In emergencies, women may choose to work beyond these hours, provided the work space is safe and transport is made available for her to commute back to her residence.
Protection of women
The Act prohibits the discrimination of women workers in matters of recruitment, training, promotion, and wages. Generally, women workers will be required to work only between 7 a.m. and 9:30 p.m. In emergencies, women may choose to work beyond these hours, provided the work space is safe and transport is made available for her to commute back to her residence.
The working hours for employees will not exceed nine hours per day and 48 hours per week. Otherwise, the employer must pay employees double their regular wages as over time.
Holidays and leave
The Act specifies that workers are eligible to eight casual leaves (CLs), and can accumulate 45 days of paid leave during a year. The establishment will declare eight days as paid festival holidays, including four national holidays. The other four festival holidays may be mutually agreed between the establishment and its workers.
Welfare of workers
The law makes it mandatory for the establishment to ensure adequate arrangements are made for the health and safety of workers. Cleanliness, hygiene, ventilation, and lighting also come under the definition of safety of workers.
once the business has received its registration certificate, the business is then considered eligible for all the benefits and tax subsidies that are offered by the state government of Maharashtra. Some of the schemes that can be availed post-Gumasta license are:
Prime Ministerâ€™s Employment Generation Programme: All manufacturing projects that involve an investment up to INR 25 lakhs and service projects that involve an investment of INR 10 lakhs are provided financial assistance under the scheme. Loans are provided from public sector banks, regional rural banks, and Industrial Development Bank of India. Here, obtaining Gumasta is a prerequisite. The loans are provided for upto 90\\% of the project costs. For those entrepreneurs belonging to SC, ST, OBC, minority, women, ex-servicemen, and physically handicapped, loans are provided up to 95\\% of the total project costs. Here projects costs include both capital assets cost as well as the working capital.
Seed Money Scheme (SMS): In this scheme, soft loans are provided to unemployed persons so that they are encouraged to become entrepreneurs. Part of the margin i.e. the part of the money required is met by availing bank loans. All Gumasta license holders can apply for the scheme provided they have plans to establish an industry or service business with a project cost of up to INR 25 lakhs. In such a project, entrepreneurs are offered assistance of 15\\% of the total project costs. For those entrepreneurs belonging to SC, ST, OBC, NT/VT, and physically handicapped, assistance is provided up to 20\\% of the total project costs. However, the maximum amount of this seed money is INR 3.75 lakhs. The rate of interest for this is 6\\% per annum after the holiday period of 3 years.
District Industries Centre Loan Scheme: under this scheme: financial assistance is provided in the form of seed money or margin. The purpose of the assistance is the promotion of tiny industries that lie in the vicinity of semi-urban and rural areas such that they involve generating employment opportunities. The establishment can be in town or rural areas. An assistance of up to INR 40000 or 20\\% of the total investment is provided to entrepreneurs of the general category. The assistance is extended for up to 30\\% of the total fixed capital investment for entrepreneurs belonging to a scheduled caste or scheduled tribe categories. The maximum offered under this category is INR 60000. The loans offered as assistance under the scheme have to be repaid to the State government with a rate of interest of 4\\% within a time period of 7years.
Proof of Legal entity:
It gives the business a proof of legal entity which means that it will give a business legal authenticity and authorization for running the business through structural premises like an office or business layout. This is essential to begin any kind of business, establishment, or shop in Mumbai. It is necessary to keep at least one legal entity proof on the business premises at the time of its operation such that it shall give the employer the right to do any business in Mumbai or the state of Maharashtra.
For conducting any business transaction of any amount of money, one requires a business bank account that should preferably be a current account. While all banks require at least one legal entity proof to open a current bank account, most banks prefer Gumasta license. Also, if the business is looking for financial assistance in the form of bank loans, Gumasta license is preferred there.