No, they are not the same. Gumasta is the everyday Mumbai name for registration under the Maharashtra Shops and Establishments Act, 2017, a State labour law that covers your shop, office or workplace. Udyam is the Central Government’s registration for micro, small and medium enterprises (MSMEs). They come from different laws, are issued by different authorities, and do different jobs. Many small businesses need both.
The difference at a glance
| Gumasta (Shop and Establishment) | Udyam (MSME) | |
|---|---|---|
| Law | Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 | MSME framework of the Central Government (Udyam portal) |
| Who issues it | State labour machinery, through the online Shops and Establishments system | Ministry of MSME, through the Udyam portal |
| What it covers | The establishment: the premises and the people working there | The enterprise: its status as micro, small or medium |
| Why you need it | Banks commonly ask for it to open a current account; landlords, marketplaces and payment gateways ask for it | MSME status, schemes and credit benefits, and protection for small suppliers against delayed payment by buyers |
| Fee | As the State system prescribes | No government fee |
Fewer than 20 workers: intimation, not registration
Under the 2017 Act as amended in 2025, the full registration provisions apply to establishments employing 20 or more workers (the earlier limit was 10; check the current limit on the Maharashtra labour department portal). An establishment with fewer than 20 workers files an online intimation under Section 7, within the time prescribed (commonly stated as 60 days from starting business), and receives an acknowledgement of that intimation. If the number of workers later reaches the registration limit, registration under the Act is then required.
Do I need both?
- A shop, office or clinic in Mumbai: usually needs the Shops and Establishments intimation or registration, because that is the workplace law and what banks ask for.
- Any business that supplies goods or services to larger buyers: benefits from Udyam, especially for the protection against delayed payments.
- One does not replace the other. Udyam does not require a Shop Act registration, and a Shop Act registration does not give MSME status.
A sensible order
- PAN in the correct name, and a bank account in the business’s name
- Shops and Establishments intimation or registration
- Udyam registration, using PAN and Aadhaar
- GST registration, where required. See when GST is compulsory
Keep the business name, address and description identical on all of them. Small differences between registrations are what cause trouble a year later.
Frequently asked questions
Is the Gumasta licence still called a licence?
“Gumasta licence” is the common name. Under the 2017 Act it is a registration, or an intimation for establishments below the registration limit (20 workers after the 2025 amendment).
Can I get Udyam without GST?
Udyam is based on PAN and Aadhaar. GST details are asked for where the business is GST-registered.
Can a home-based business register?
Yes, where it is actually carried on from that address, with proof of the premises and the owner’s consent where it is not owned.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes general procedure as understood in October 2026. It is not legal advice; forms, portals and fees change, so confirm current requirements with the office concerned before applying.
Related
- Shop and Establishment (Gumasta) and Udyam registration
- GST registration in Mumbai
- Document checklist builder