Bihar Shop and Establishment Registration

If you own a shop, commercial establishment, or any business engaged in trade, service, or commerce in Bihar, it is mandatory to register under the Bihar Shops and Establishments Act, 1953. Register now for Bihar Shop and Establishment Registration.

Pricing Summary

₹ 1999/-

Documents preparation
Application Filing
Issuance of Gumasta License

Bihar Shop and Establishment Registration: Overview

The Bihar Shops and Commercial Establishments Act, 1953 regulates the working conditions and employment of persons in shops, commercial establishments, and other similar establishments in the state of Bihar. Registration under this Act is mandatory for all businesses engaged in commercial, trading, or service activities.

Key Aspects Covered Under Shop and Establishment Act

The Bihar Shop and Establishment Act, 1980, is designed to regulate the working conditions of workers in shops, commercial establishments, and other businesses. The primary objective of this law is to ensure fair working conditions and a safe environment for employees. The law applies to all shops, commercial establishments, and other places where business activities are conducted in the state of Bihar.

The Act is aimed at:

Ensuring fair working hours for employees
Protecting the rights of workers
Ensuring the proper maintenance of records related to wages and working hours
Providing safety measures for employees

By registering your business under this Act, you are not only complying with legal norms but also showing your commitment to treating your employees fairly.

Who Needs to Register Under the Bihar Shop and Establishment Act?

Under the Bihar Shop and Establishment Act, registration is mandatory for all types of businesses operating in Bihar. This includes:

Shops: Any place where goods are sold or services are provided to customers.
Commercial Establishments: Offices, banks, hotels, restaurants, and other commercial establishments that are not shops.
Factories: Any establishment that manufactures products for sale or distribution.
Other Businesses: Even freelance professionals like consultants, service providers, and contractors who operate from a fixed location need to register their establishment under the Act.

Documents required for Shop and Establishment Registration

PAN card of directors/partners/proprietor
Aadhar card of directors/partners/proprietor
Passport size photographs of directors/partners/proprietor
Proof of commencement of business (such as GST registration/ MSME Registration)
Business address proof – Rent agreement and Property Tax Receipt
Business address details like
- District –
- Block/ Circle –
Authorisation letter
Signature of Applicant with designation
Photograph of the Sign Board of the Establishment or Shop
Number of male and female employee
Affidavit Regarding Non – Employment of Child Labour
Declaration Regarding Non – Registration of establishment prior to registration

Estimated date of issue of certificate

Normally any response will be given within 15 days of application

Bihar Shop and Establishment: Registration Process

Step 1: Prepare the Required Documents

Before starting the registration process, you need to gather the necessary documents. These documents are typically required for all types of businesses in Bihar:

Proof of Identity: A copy of the owner’s photo ID (Aadhaar, Passport, Voter ID).
Proof of Address: A recent utility bill, rent agreement, or property papers to prove the address of the establishment.
Business Details: The name of the business, type of business, nature of the establishment, and the number of employees.
PAN Card: For tax purposes, the Permanent Account Number (PAN) of the business owner or the establishment.
Certificate of Incorporation (if applicable): For registered companies or limited liability partnerships (LLPs).

Step 2: Submit the Application Form

The next step is to fill out the registration application form. In Bihar, this can either be done manually at the local municipal office or through the online portal, depending on the convenience of the applicant. Ensure that all the details are accurate and complete.

If applying online, visit the official website for Bihar’s Labor Department or the online portal dedicated to business registrations in the state.

Step 3: Pay the Registration Fee

There is a small fee for registration, which varies depending on the size and type of business. This fee can be paid either online or at the designated government office. Be sure to keep the receipt for future reference.

Step 4: Verification Process

Once your application is submitted, the authorities will review your documents and application. If everything is in order, they will issue a registration certificate. The authorities may conduct an inspection of your premises before approval, depending on the type of business.

Step 5: Receive the Registration Certificate

After the verification process, you will receive your registration certificate, which you must display prominently in your establishment. This certificate is proof that your business is registered and complies with the provisions of the Bihar Shop and Establishment Act, 1980.

Validity and Renewal of Bihar Shop and Establishment

The Bihar Shop and Establishment registration certificate is valid for one year and must be renewed annually before the expiry date. The renewal process involves submitting an application along with the prescribed fee.

Key Legal Provisions Under the Act

Once your establishment is registered, it’s important to understand the legal provisions that apply to your business. Here are some of the key points under the Bihar Shop and Establishment Act, 1980:

Working Hours: Shops and establishments must adhere to working hours prescribed by the law. Generally, the working hours should not exceed 9-10 hours a day, with a maximum of 48 hours per week. Employees should be given a weekly holiday.
Wages: Employers are obligated to pay wages to employees regularly and at intervals not exceeding one month.
Leave Entitlement: Employees are entitled to annual leave and sick leave as per the provisions of the Act.
Overtime: Employees who work beyond the prescribed working hours are entitled to overtime pay.
Safety and Welfare: The Act outlines certain safety, health, and welfare provisions that must be adhered to by employers, such as providing clean and safe working conditions.

Benefits of Shop and Establishment Registration

Legal Recognition

Registering a business under the Shop and Establishment Act grants it legal recognition, which is crucial for establishing credibility and trust with customers, suppliers, and financial institutions. This recognition is essential for any formal business operations and for entering into contracts

Government Compliance

Registration ensures that the business complies with local labor laws and regulations, including working hours, wages, and employment conditions. This helps avoid legal penalties and fines, ensuring smooth and lawful business operations.

Consumer Trust

A registered business is often perceived as more trustworthy and reliable by consumers. This can enhance the business’s reputation and attract more customers, as people are more likely to engage with a business that is officially recognized and compliant with legal standards.

Bank Account Opening

Many banks require proof of business registration to open a business bank account. Having a registered business makes it easier to access banking services, including business loans and credit facilities, which are vital for managing finances and expanding operations.