Shop Act Registration - Complete Guide for 2026
📌 TL;DR - Shop Act Registration Services at a Glance
Shop Act Registration (also called Gumasta Licence in Maharashtra) is mandatory for every shop and commercial establishment in India under the respective state's Shops and Establishments Act. The central model law is the Act of 1948, but each state has its own version. Government fees range from Rs 500 to Rs 5,000. The licence regulates working hours (max 48 hrs/week), overtime (double wages), weekly holidays, and leave entitlements. Penalties for non-registration: Rs 1,000 to Rs 25,000 with imprisonment up to 3 months.
From a kirana store in Delhi to an IT office in Pune's Hinjawadi, from a cloud kitchen in Bengaluru to a boutique hotel in Mumbai - every commercial premises needs a Shop and Establishment licence. It is often the first licence a business obtains after incorporation or GST registration. The licence legally recognises the business premises and ensures compliance with employment regulations. Banks require it (along with GST and PAN) for opening current accounts and business loans.
| Parameter | Details |
|---|---|
| Governing Law | State-specific Shops and Establishments Acts (modelled on central Act of 1948) |
| Applicable To | All shops, offices, restaurants, hotels, theatres, warehouses, and commercial establishments |
| Excludes | Factories registered under the Factories Act, 1948 |
| Registration Authority | State Labour Department / Municipal Corporation |
| Government Fee | Rs 500 to Rs 5,000 (state and employee-count dependent) |
| Validity | 1 year to lifetime (varies by state) |
| Key Regulation | Working hours, leave, wages, overtime, weekly holiday, employment conditions |
Content is reviewed quarterly for accuracy.