How to Set Up Business in Mumbai


Mumbai is one of the growing cities in India and is a great city for the purpose of venturing a new business. However, when starting a new business in Mumbai, you have to look into all the legal and other requirements which are required for starting a new business. There are various laws under which a new business has to register or a license is required to be obtained under such laws like Gumasta License, FSSAI Registration.  In this article, we will talk about the basic things to know to set up a business in Mumbai and registrations required in Mumbai.

Process of starting a business in Mumbai

1. Firstly, you are required to do market research about the products that are required in your business area and competition in the market. You can determine by this whether your business would be profitable or not and in which conditions it can be profitable. You can determine the field in which you can start your business like a restaurant, information technology company, shop for products like electronics etc.

2. Then, you will be required to decide the structure of your business. You can form a proprietorship firm or partnership firm, public limited company, private limited company, limited liability partnership, etc. there are various benefits of every form of business, however, the best structure of your business has to be determined by you as per your requirement like persons involved, type of business, initial investment to be done etc.     Hence, you’re are the best judge of deciding which business structure you require, and in such case, you are also required to register, if required under any law. Like companies are required to register under Companies Act, 2013, limited liability partnership under the Limited Liability Partnership Act, 2008, unlike proprietorship firm which does not require any registration.

3. Upon deciding the structure and type of business, you are required to find a good place for setting up the office of your business. The place should be convenient and easily accessible so you get more clients and customers.

4. Additionally, when you form a separate legal entity like a company or a limited liability partnership you are required to obtain Permanent Account Number under the Income Tax Act, 1971, in the name of your business

5. Further, Gumasta License is a license under shop and establishment act and is required in case you are carrying any commercial activity in Mumbai. The Gumasta License is given by MunicipalCorporation of Mumbai under the Maharashtra Shop and Establishment Act, 2017. Hence, every person who is thinking of setting up a new business is required to obtain Gumasta License under the shop and Establishment Act.

6. In case you fail to obtain a Gumasta License then you may face legal consequences as provided under the Act.

The process for applying for Gumasta License is very simple. The application for Gumasta License can be made offline as well as online. You can send your offline application to MunicipalCorporation of Mumbai along with the required documents. You can apply online for Gumasta License at the official website of Municipal Corporation of Mumbai. Your form will depend on the number of employees you have like less than 10 or more than 10 in form A/ Form F.

Further, for the purpose of filling the said application, you require documents e.g.Aadhar card, PAN card, Address Proof, Application Letter in the prescribed form, proof of ownership of property, proof of businesslike partnership deed/incorporation certificate of your company etc.

  1. Another one of the important registrations is FSSAI i.e. Food Safety and Standard Authority of India. in case, you are planning to open a restaurant or any business related to food, you are required to take permission from FSSAI. It gives permission to and governs the working of restaurants. All the restaurants are required to take permission from FSSAI and follow its rules and regulations. In case you fail to comply with its rules and regulation, the may prohibit your food-related business. It is pertinent to note that the registration is mandatory and not discretionary and in case they are not done you may be required to face legal consequences.


Thus, in case you are planning to start or set up a new business in Mumbai you should consider all the above-mentioned registrations and basic points as in case you fail to obtain registration and license, you may face legal consequences and penalties which will not be a good thing for your new business. Further, it has to be kept in mind that the registrations and licenses are stated above are required to be taken by you like Gumasta License and FSSAI license. Further, your business should be registered under the laws regarding the same since legal recognition and security is provided to your business.


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