Shop and Establishment Registration in Bihar: What Changed in 2026
Bihar repealed its Shops and Establishments Act from 1 June 2026. Registration is now needed only for establishments with 10 or more workers under the OSH Code. Here is what that means for you.
Bihar Directory Team · · 7 min read
This guide is for shopkeepers, clinic and coaching owners, restaurant owners and any employer in Bihar asking, "Do I still need shop and establishment registration in Bihar?" The rules changed sharply in 2025-2026, and a lot of old advice online is now wrong. Here you will find what changed, who must register now, how to register, what documents to keep ready, and how it differs from a municipal trade licence.
The short answer (as of 2026)
- Bihar's separate Shops and Establishments law was repealed by an ordinance with effect from 1 June 2026.
- Shops and commercial establishments are now governed by the central Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) and the Bihar OSHWC Rules made under it.
- Registration is mandatory only if your establishment employs 10 or more workers, whether it is in a city like Patna or a village market.
- Shops with fewer than 10 workers no longer need a separate shop registration — but they still need other licences such as the municipal trade licence, GST (if above the limit) and FSSAI (for food).
Because this is new, always confirm the latest position with the Labour Resources Department, Bihar, or your district labour office before you act.
What changed: a quick timeline
- For decades, shops in Bihar registered under the Bihar Shops and Establishments Act, 1953, and even a one-person shop in notified areas was expected to register.
- In 2025 the state enacted a new law, the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025, which set a registration threshold of 10 or more workers along with rules on working hours, leave and wages.
- The central OSH Code came into force on 21 November 2025, covering much of the same ground nationally.
- To remove the overlap, the Governor approved an ordinance on 28 May 2026 repealing the 2025 Act, effective 1 June 2026. Cases started under the old Act before that date continue under it.
- A Repeal Bill was introduced in the Bihar Legislative Assembly in the July 2026 monsoon session to give the ordinance permanent legal backing.
Who needs registration now?
Under the OSH Code framework, an establishment (shop, office, showroom, restaurant, clinic, coaching centre, warehouse and so on) that employs 10 or more workers must register electronically. Count everyone who works for wages — salespeople, helpers, cooks, cleaners, delivery staff, receptionists — including contract workers engaged through a contractor.
Examples
- A kirana shop in Dehri with the owner, his son and two helpers: 2-3 paid workers — no separate shop registration needed now.
- A garment showroom on Patna's Boring Road with 14 salespeople and helpers — must register.
- A coaching institute in Musallahpur with 6 teachers and 5 office and support staff (11 workers) — must register.
- A restaurant in Gaya with 9 staff that hires 3 extra during the wedding season — once it crosses 10 workers, it must register. Plan for peak staffing, not just the average.
How to register online (step by step)
Registration under the OSH Code and Bihar Rules is electronic. The general process is:
- Go to the Labour Resources Department, Bihar's official online portal (linked from the department's website on bihar.gov.in). If you cannot find the right link, ask at the district labour office (Shram Adhikshak / Labour Superintendent office).
- Create a login using the employer's mobile number, email and PAN.
- Fill in establishment details: name, address, nature of business, date of start, number of workers (men, women, contract), working hours and weekly holiday.
- Upload documents (list below) and submit.
- Get the registration certificate digitally. According to published summaries of the Bihar OSHWC Rules, an application not processed within seven days is treated as approved (deemed registration).
- Report changes — ownership, management, address or a big change in worker numbers — within 30 days.
Fees, if any, are shown on the portal at the time of applying. Do not pay agents who claim to have a "setting" at the labour office; the process is online and deemed approval protects you from delay.
Documents to keep ready
- PAN of the business or owner
- Aadhaar of the owner or authorised person
- Proof of business address (rent agreement or property tax receipt)
- Partnership deed, LLP agreement or company incorporation certificate, if applicable
- List of workers with names, roles and wages
- Photograph of the shop front with the name board
- GST or Udyam registration, if already taken
What employers with 10+ workers must also do
Registration is only the start. The OSH Code framework expects you to:
- Give every worker an appointment letter with the prescribed details, and an identity card.
- Keep working hours within limits (a 48-hour week is the general cap) and pay overtime for extra hours.
- Provide basic safety: clean drinking water, toilets, lighting, ventilation, first aid.
- Keep attendance and wage records, preferably digital.
- Allow women to work night shifts only with their consent and proper safety arrangements.
Our guide on hiring and keeping good staff covers the practical side of appointment letters, salaries and leave.
Penalties: why not to ignore it
The OSH Code has penalties for running an establishment without registration and for violating working-condition rules, and inspector-cum-facilitators can inspect. Amounts depend on the offence and are set in the Code. Beyond fines, an unregistered establishment with 10+ workers is a problem when you apply for bank loans, tenders or insurance claims.
Shop registration vs municipal trade licence
These are two different things and people often confuse them:
- Shop and establishment registration (now under the OSH Code): a labour law registration about your workers. Needed only at 10+ workers.
- Municipal trade licence: a licence from your nagar nigam, nagar parishad or nagar panchayat under the Bihar Municipal Act, 2007, to use premises for business. Needed by most shops in municipal areas regardless of staff size. Fees and renewal periods are set by the local body.
So a small medical shop in Sasaram with two staff may not need labour registration, but it still needs a trade licence, a drug licence and possibly GST. See the full licences checklist for starting a business in Bihar.
What if I already have an old shop registration certificate?
Keep it. It still proves your business existed on that date, which helps with bank accounts, loans and address proof. Proceedings started under the old law continue under it. If you have 10 or more workers, make sure you are registered under the new OSH Code framework as well. If you are unsure, ask the district labour office in writing.
Common mistakes
- Relying on old blog posts that say every shop must register under the 1953 Act.
- Not counting contract or seasonal workers when checking the 10-worker threshold.
- Thinking registration replaces the trade licence. It does not.
- Paying for "renewal" of a certificate that no longer needs renewal — ask what law the agent is applying under.
Checklist
- Count your workers, including contract and seasonal staff
- 10 or more? Register online with the Labour Resources Department
- Fewer than 10? Skip labour registration but check trade licence, GST, FSSAI
- Issue appointment letters and keep wage records
- Report changes within 30 days
Next steps
Sort your registrations once, then focus on growing sales. List your business free on Bihar Directory so customers across Patna, Rohtas and all 38 districts can call, WhatsApp or get directions to you. Hindi readers can read दुकान का रजिस्ट्रेशन और ट्रेड लाइसेंस.
This is general information, not legal advice. Labour rules in Bihar changed in 2025-2026; confirm the current requirements with the Labour Resources Department, Bihar, or a qualified professional.
Frequently asked questions
Is shop and establishment registration still required in Bihar?
Since 1 June 2026, Bihar's separate Shops and Establishments Act has been repealed. Registration is now required under the OSH Code framework only for shops and establishments employing 10 or more workers.
Does a small shop with 2-3 workers need to register?
No separate labour registration is needed for establishments with fewer than 10 workers, but the shop still needs other licences such as the municipal trade licence and, where applicable, GST and FSSAI.
Where do I register my establishment in Bihar now?
Registration is done electronically through the Labour Resources Department, Bihar's online portal under the OSH Code and Bihar OSHWC Rules. The district labour office can guide you.
Is shop registration the same as a trade licence?
No. Labour registration is about your workers, while a trade licence is issued by your nagar nigam, nagar parishad or nagar panchayat for using premises for business.
What should I do with my old shop registration certificate?
Keep it as proof of your business history. If you now have 10 or more workers, make sure you are also registered under the new OSH Code framework.
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