The new amendment effective from 20th December 2017 has been proved to be a boon and relief to many employers and small and medium size establishments. The state government has amended by issuance of notification the Maharashtra Shop and Establishment (Regulation of Employment and Service Condition) Act 2017. Now the shops and establishment can remain open 24 by 7 in three shifts. This act applies to hotels, restaurants and malls as well.  Although the shops and establishments can remain open 24x7 but it shall be made mandatory to provide atleast a day off to the employees. Further this amendment shall relieve the shop owners and restaurants by making it free from the license raj and corruption. The changes shall apply to all small and medium size shops and establishment or even those working from home whose employees count does not exceed 10. In other words, shops and establishments having zero or less than 10 employees shall be free from license i.e. the shop and establishment license generally known as Gumasta shall not be mandatory for such establishments.

Important pointers from the said amendment:

  • No bar on timings- The shops and establishments can now be open 24x7 in three shifts
  • All workers to get a weekly off mandatorily.
  • Excludes bars, pubs, wine shops and disco’s i.e. the time curbs on bars, wine shops, disco, pubs shall continue as was before.
  • Shops and establishments can stay open 365 days in a year and can also have their opening and closing timing of their choice.
  • Additional clearance for restaurants in residential areas shall be required.

The benefit of this relaxation is presume to prove beneficial for about 25 lakh establishmentsalso over 15 lakh shops and establishments which have less than 10 can now fix their own time of operations. This relief has facilitated workers enabling them to get identity cards, minimum wages and weekly offs. The highlight of the state decision is to free from corruption and unnecessary harassment by the inspector raj of the civic body as shopkeepers can now register online.  This amendment and move shall facilitate a small eatery in the neighbourhood to be able to cater to our needs even late in the evening or early in the morning.

List of the Shops and Establishment which are excluded from the amendment and where this amendment shall not apply:

(1)Establishments of the Central and State Government;

(2) Establishments of Local Authorities;

(3) Establishment of Mumbai Port Trust;

 (4) Establishment of Railway Administration;

(5) Offices of Reserve Bank of India;

 (6) Offices of the Trade Commissioner and of Consular officers and other Diplomatic representatives of Foreign Government;

(7) Offices of Air Service Companies;

(8) Establishments used for treatment or care of infirm, destitute or mentally unfit;

 (9) Establishments pertaining to any kind of educational activities (excepting those where coaching or tuition classes are conducted by individual persons or any institutions other than those,—

 (a) affiliated to any university established by law, or

(b) recognized by the Divisional Boards under the Maharashtra Secondary and Higher Secondary Education Boards Act, 1965, or

(c) recognized by the Directorate of Education or the Directorate of Technical Education as a private secondary or technical high school, Industrial Training Institute (I.T.I.), Polytechnic, Engineering Colleges or other technical institutions conducting courses recognized by Government) ;


(10) High Court Law Libraries and other Courts Law Libraries;

(11) A worker occupying position of confidential, managerial or supervisory character in an establishment, a list of which shall be displayed on the website of establishments and in absence of the website at a conspicuous place in the establishment and a copy thereof shall be sent to the Facilitator;

 (12) A worker whose work is inherently intermittent;

 (13) A member of the family of an employer.

The Process of Registration shall be carried on as below:

Within a period of sixty days from the date of commencement of this Act or the date on which establishment commences its business, the employer of every establishment employing ten or more workers shall submit application online in a prescribed form for registration to the Facilitator of the local area concerned, together with such fees and such self-declaration and self-certified documents as may be prescribed, containing—

 (a) the name of the employer and the manager, if any;

 (b) the postal address of the establishment;

(c) the name, if any, of the establishment;

(d) the actual nature of the business of the establishment ; and

(e) such other particulars as may be prescribed : Provided that, nothing contained hereinabove shall apply to the establishments already having valid registration or renewal under the Maharashtra Shops and Establishments Act until expiry of their registration or renewal.

For any query you can write . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

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CA Chirag Chauhan

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    I hope by reading this article you got enlighten on ,No shop & establishment license required for less than 10 employees from 2018 in Maharashtrafurther to mention before taken any financial decision based on this content it is prefered to take an expert opinion as matter can be subjective.