Every Shop and commercial establishment conducting a business in a state needs to register with the state government under Shop act before commencing a business. An inspector appointed by the labour department of the state will check the necessary conditions under the act and then issue a certificate of Shop act registration to the employer which has to be displayed in the Shop. It is also called as shop act licence. Department of Labour of state government handles all the registrations under this act.

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.

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