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Shop and Establishment Registration in Bihar

shop and establishment registration in bihar

Shop and Establishment Registration in Bihar

Shop Registration in Bihar is an essential legal requirement for businesses operating within the state. It is designed to regulate and safeguard the working conditions of employees across various commercial establishments such as shops, offices, and restaurants. This registration ensures compliance with state-specific wage regulations, working hours, leave policies, and workplace safety, contributing to fair treatment and a safe working environment. It also aids businesses in adhering to labour laws concerning cleanliness, fire safety, and employee rights. By getting this Shop Act registration in Bihar, businesses gain legal recognition, boost their credibility, and qualify for government schemes and benefits, ultimately fostering a trustworthy and compliant business environment.

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What is Shop and Establishment Registration?

Shop and Establishment Registration is a state-specific law that governs the working conditions of employees in commercial establishments such as shops, offices, and restaurants. The law aims to protect the rights of employers and employees by regulating key aspects like wages, working hours, leave policies, overtime work, maternity leave, child labour, fire safety, cleanliness, lighting, ventilation, and record keeping. The registration process varies from state to state. It requires businesses to provide important details such as the business name, address, owner’s name, number of employees, working hours, weekly holidays, and other relevant information.

Benefits of Shop and Establishment Registration

The benefits of Shop and Establishment Registration include:

  • Legal Recognition: It gives businesses legal recognition from the respective state government, enabling them to operate lawfully.
  • Employee Rights Protection: It helps safeguard employee rights by regulating wages, working hours, leave policies, and overtime, ensuring fair treatment.
  • Compliance with Labor Laws: Ensures businesses comply with labour laws related to fire safety, child labour, maternity leave, cleanliness, lighting, and ventilation.
  • Business Credibility: Boosts the business’s credibility as it adheres to state regulations, enhancing trust with employees, customers, and stakeholders.
  • Bank Account Opening: Most banks require Shop and Establishment Registration to open a current business account.
  • Government Benefits: Registered businesses may be eligible for various state and central government schemes and benefits.

Eligibility Criteria for Shop Registration in Bihar

All commercial shops and establishments operating within the Bihar state must register under the Shops and Establishment Act Bihar. This includes businesses such as:

  • Restaurants
  • Theatres
  • Stores
  • Shopping centres
  • Hotels
  • Retail shops
  • Other similar establishments

Owners of these establishments must ensure that their registration is completed within 30 days of the inauguration of their business. Failure to comply with this requirement can lead to penalties.

Documents Required for Shop Registration in Bihar

The following documents are typically required for Shop registration in Bihar Online.

  • PAN card of owner or business: This is required for tax identification.
  • Photograph of the establishment or shop with its signboard: This will help verify the location and identity of the shop.
  • Address proof of shop or establishment: This could be a rent agreement, property ownership proof, or NOC from local authorities.
  • ID proof of the establishment’s owner: This could be a driver’s license, passport, or Aadhaar card.
  • Certificate of incorporation, partnership deed, LLP agreement, or Memorandum or Articles of Association: This is required depending on the legal structure of your business (sole proprietorship, partnership, LLP, or company).
  • Details of every employee: This includes their names, addresses, and employment details.
  • Payment Challan: This is proof of payment of the registration fee.

Steps to Complete Bihar Shop and Establishment Registration

If you’re operating a business in Bihar, obtaining Bihar shop establishment registration online is mandatory. Follow these steps to Bihar shop and establishment registration online:

  1. Visit the official website: Go to the Website of Bihar’s Online Services. On the homepage, select your preferred language option (English or Hindi).
  2. Register Yourself: Click on the “Login” option. You’ll see two options: “Proceed to Login” or “Login through e-Pramaan.” Choose the e-Pramaan login option.
  3. Create an e-Pramaan Account: If you’re a new user, register. Enter your mobile number, generate and verify the OTP, and then provide your name, username, password, gender, and date of birth. Accept the terms and conditions and click “Sign Up.” A temporary password will be sent to your mobile number. After confirming the terms and conditions, complete your registration.
  4. Login to Your Account: Log in with your newly created username and password.
  5. Search for the Service: In the dashboard, search for “Bihar Shop and Establishment Act” by clicking on “Search” and entering “Bihar.” Select “Bihar Service Plus” and click “Access Now” to open the online services dashboard.
  6. Apply for Registration: Click “Apply for Services” and “View All Available Services.” Search for “Shop and Establishment” and select “Application for Registration under Rule 3, Form No. 1.”
  7. Prepare Required Documents: Ensure you have the following documents ready: Applicant’s photograph, Proof of identity, Self-declaration regarding the prohibition of child labour, Rental agreement (if applicable), etc., as we mentioned.
  8. Fill Out the Form: Click “Application form for registration – Form No – 1 (Rule 3) to open the application form. Enter details including:
    • District and sub-division
    • Name of the establishment
    • Full address
    • Type of establishment (e.g., shop, restaurant, residential hotel, or other)
    • PIN code and opening date
  9. Submit Your Application: After filling in all the required details and attaching the necessary documents, submit the form to complete your registration of shop in Bihar process.

Following these steps will ensure your business complies with the Shop and Establishment Act Bihar and gets a gumasta licence Bihar.

Shop and Establishment Registration Fees in Bihar

The registration fees for the Shop and Establishment Act in Bihar are variable and depend on the size and nature of the establishment, particularly the number of employees. Typically, the fee structure is designed to reflect the scale of the business, with larger establishments or those with a greater number of employees potentially incurring higher fees.

Penalties for not getting Bihar Shop and Establishment Registration

You may face penalties if you fail to register your shop or establishment under the Bihar Shops and Establishments Act, 1953. These include a late fee of 50% of the prescribed fee for the first six months and an additional 50% for each subsequent three-month period. Additionally, a first offence can result in a fine of up to 250 rupees, while subsequent offences may incur a fine of up to 500 rupees for each conviction.

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FAQ’s

1. What is the purpose of Shop and Establishment Registration in Bihar?

The Shop registration in Bihar ensures that businesses adhere to the legal requirements related to labour laws, including working hours, payment of wages, and health and safety standards.

2. Who must register under the Shop and Establishment Act in Bihar?

Every commercial establishment, including shops, hotels, and theatres, must obtain registration under the Shop and Establishment Act in Bihar.

3. What are the essential documents for Shop and Establishment Registration in Bihar?

Essential documents include proof of business address, identification proof of the owner, PAN card, and a property document like a lease agreement or ownership proof.

4. Is there a registration fee for Shop and Establishment Registration in Bihar?

Yes, a shop and establishment registration fee in Bihar varies based on the business type and the number of employees.