Navigating the Shop & Establishment Act: Does Your Pvt. Ltd. Need a Gumasta License?

A software company (Pvt. Ltd.) needs to obtain a Gumasta license or comply with the Shop & Establishment Act.

Understanding the Shops & Establishment Act

The Shops & Establishment Act is a state Act, so you need to review your applicable Act to determine whether your establishment is covered under this Act or not. In general, software companies are covered under this Act.

Regards,
R.N. KHOLA
[Welcome Skylark Associates](http://www.skylarkassociates.com/)

Software Co. is a company established under the Companies Act (may be Pvt. Ltd./Public Ltd. Co). It is not a factory under the Factories Act; it is an establishment. Hence, it has to be registered under the Shops and Establishment Act (Under State Govt.).

Regards,
D. Gurumurthy
LL, HR & IR Consultant

Dear Prashant, Shops Acts are state enactments. Therefore, you need to refer to your state Shops Act. A software company is a commercial establishment and thus, it is an establishment within the meaning of the Shops Act. However, some Shops Acts grant exemptions to certain establishments from the Act fully or from certain provisions of the Act. For example, the Bombay Shops Act grants exemptions to software companies in Maharashtra from working hours, etc. You may also have to ascertain any exemptions granted to software companies under the Shops Act of your state.

Regards,
B. Saikumar
HR & labour law consultant
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