Licences Needed to Start a Business in Bihar: Complete 2026 Checklist

This checklist is for anyone starting a shop, service or small factory in Bihar and wondering which licences are needed to start a business in Bihar. Instead of a confusing list of 20 registrations, we explain each one in plain words — Udyam, GST, labour registration, municipal trade licence, FSSAI, fire NOC, pollution consent, drug licence, professional tax, EPF and ESIC — and then show which ones apply to common businesses like a kirana shop, a restaurant, a medical store or a small factory.

First, the basics every business needs

Before any licence, get these in place:

• PAN of the owner (proprietorship) or of the firm/company.
• A current bank account in the business name — banks will usually ask for at least one registration (Udyam, GST or trade licence) as proof.
• Proof of premises — rent agreement or ownership papers plus the latest property tax receipt.

Udyam and GST: the two core registrations

Udyam registration (MSME) — free and recommended for all

Udyam registration on udyamregistration.gov.in is free, paperless and based on Aadhaar and PAN. It is not compulsory for every shop, but it is the key to MSME benefits: priority-sector bank loans, collateral-free loans under CGTMSE, government tenders and delayed-payment protection. Since April 2025, a micro enterprise can have investment up to ₹2.5 crore and turnover up to ₹10 crore.

Step-by-step help: Udyam registration guide (Hindi: उद्यम रजिस्ट्रेशन कैसे करें).

GST registration — when your turnover crosses the limit

In Bihar, GST registration is mandatory when annual turnover crosses ₹40 lakh for goods or ₹20 lakh for services. It is also mandatory, regardless of turnover, for inter-state sales of goods and for most sellers on e-commerce platforms. Small traders can choose the composition scheme to pay a low flat rate with simpler returns. After "GST 2.0" in September 2025, most items fall in the 5% and 18% slabs, so check your product's new rate.

Full guide: GST registration for small business in Bihar.

Trade licence and labour registration

Municipal trade licence — for most shops in towns

If your business is in a municipal area (nagar nigam, nagar parishad or nagar panchayat), you usually need a municipal licence, commonly called a trade licence, under the Bihar Municipal Act, 2007, to use premises for business. Apply at your local body's office (in Patna, the Patna Municipal Corporation circle office). Fees depend on the trade and the local body, and the licence is generally renewed yearly. Keep the property tax receipt ready.

Labour registration — only if you have 10 or more workers

Bihar repealed its separate Shops and Establishments Act from 1 June 2026. Now, under the central OSH Code, establishments with 10 or more workers must register online with the Labour Resources Department. Smaller shops do not need this registration. Details: shop and establishment registration in Bihar.

EPF and ESIC

• EPF (provident fund) generally applies once you employ 20 or more people.
• ESIC (health insurance for workers) generally applies at 10 or more employees, for workers within the notified wage ceiling.

These are now under the Code on Social Security; check thresholds on the EPFO and ESIC portals when you approach them.

Sector licences: food, fire, pollution and medicines

FSSAI — for any food business

Anyone who makes, sells, stores, transports or serves food needs FSSAI registration or a licence: kirana shops selling packaged food, sweet shops, restaurants, tiffin services, bakeries, even home kitchens. Since 1 April 2026, businesses with turnover up to ₹1.5 crore (earlier ₹12 lakh) take basic registration; bigger ones need a state licence or central licence. Apply on the FoSCoS portal. Guide: FSSAI registration for food businesses.

Fire NOC — for bigger premises and risky trades

A fire safety NOC from Bihar Fire Service is needed for buildings and businesses above certain size or height, and for high-risk uses: hotels, restaurants with large seating, hospitals and nursing homes, coaching institutes with many students, marriage halls, cinemas, godowns storing flammable goods and factories. A small ground-floor shop usually does not need one, but a multi-floor coaching centre in Patna or a banquet hall in Muzaffarpur almost certainly does. Ask the local fire station before signing a lease, because fixing a building later is expensive.

Pollution consent (CTE and CTO) — for manufacturing units

If you manufacture something, you may need consent from the Bihar State Pollution Control Board (BSPCB):

• Consent to Establish (CTE) before you build or set up the unit.
• Consent to Operate (CTO) before you start production.

Industries are classified as red, orange, green or white by pollution potential. White-category industries (very low pollution, such as many assembly or packaging units) are exempt from CTE under central notifications of November 2024. Applications are made online on the board's OCMMS portal, bhocmms.nic.in. A rice mill in Rohtas, a brick kiln, a dal mill in Patna City or a small plastic unit will need to check their category carefully.

Drug licence — for medical stores and wholesalers

A chemist shop or pharma wholesaler needs a drug licence from the Drugs Control Administration, Bihar, under the Drugs and Cosmetics Act. A retail medical store needs a registered pharmacist, minimum space and proper storage (a refrigerator for vaccines and insulin). Plan this before you rent the shop. Our directory of chemists in Patna shows how established stores present their services.

Professional tax in Bihar

Bihar levies professional tax under its Professions, Trades, Callings and Employments Taxation Act, 2011, managed by the Commercial Taxes Department. It is small but compulsory for those covered:

• Salaried people: nil up to ₹3 lakh income a year; then ₹1,000, ₹2,000 or ₹2,500 a year depending on income slab. Employers deduct and deposit it.
• Dealers/traders: based on turnover — for example ₹1,000 a year for ₹10-20 lakh, ₹2,000 for ₹20-40 lakh and ₹2,500 above ₹40 lakh.
• Professionals such as doctors, lawyers and CAs pay according to their income.

Employers need a PT registration certificate; individuals liable to pay need enrolment. Confirm your slab with the department.

Other registrations that may apply

• Legal Metrology: if you use weighing scales, get them verified and stamped; packers of pre-packed goods need registration.
• Trademark: optional, but protects your brand name.
• Import Export Code (IEC): only if you export or import.

Which licences apply to which business? Examples

Kirana shop in Sasaram (2 helpers, ₹25 lakh turnover): PAN, bank account, Udyam, municipal trade licence, FSSAI registration, weighing scale verification. GST not mandatory below ₹40 lakh unless selling inter-state. Also read how to start a kirana shop.

Restaurant in Patna (15 staff): Udyam, GST, trade licence, FSSAI state licence (if turnover above the basic limit), labour registration (10+ workers), ESIC, fire NOC depending on seating and building, and professional tax registration as an employer.

Medical store in Gaya: drug licence with pharmacist, trade licence, GST (most do register), Udyam.

Mobile repair shop in Ara: Udyam, trade licence; GST once services cross ₹20 lakh or if you sell accessories above the goods limit. See starting a mobile repair shop.

Small spice-grinding unit in Bhagalpur: Udyam, GST, FSSAI licence, BSPCB consent as per category, trade licence or panchayat permission, legal metrology packer registration.

Common mistakes

• Signing a shop lease before checking whether a drug licence or fire NOC is possible there.
• Paying agents for "all licences" without knowing which ones you need.
• Forgetting renewals — keep a list of expiry dates on your phone.
• Using an old address on registrations after moving.

Next steps

Tick off the licences that apply to you, keep scanned copies in one folder, and set renewal reminders. Then tell customers you are open: list your business free on Bihar Directory with your hours, photos and payment options.

This is general information, not legal or tax advice. Confirm current requirements, fees and thresholds with the concerned department or a qualified professional before you start.