Bihar Shops and Establishments Act Repealed: How Shops and Offices Register Now Under the OSH Code (2026)
Bihar no longer has a Shops and Establishments Act. It was repealed by ordinance on 1 June 2026, and the Bihar Shops and Establishments (Repeal) Act, 2026 (Bihar Act 15 of 2026) made that permanent in August. A shop or office with 10 or more workers now registers under the Occupational Safety, Health and Working Conditions Code, 2020 instead. A smaller shop needs no labour registration, but still needs its municipal trade licence, GST or FSSAI where they apply, and professional tax. Bihar is the first state to repeal its shops law outright. Most competitor pages still describe the old Act.
What happened
| Date | Event |
|---|---|
| 2025 | Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025 (Bihar Act 9 of 2025) |
| 21 November 2025 | The four Labour Codes, including the OSH Code, come into force nationally |
| 1 June 2026 | Bihar Ordinance No. 1 of 2026 repeals the 2025 Act with immediate effect |
| 1 July 2026 | Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026 published |
| 3 August 2026 | Bihar Shops and Establishments (Repeal) Act, 2026 (Bihar Act 15 of 2026) published, replacing the ordinance |
| 14 August 2026 | Risk-based inspection scheme under the Labour Codes notified |
Anything already done or started under the 2025 Act stays valid. Other states have taken a softer route: Maharashtra and Haryana now only exempt establishments that are registered under the OSH Code.
Who must register now
- 10 or more workers: your shop, office or other establishment is an “establishment” under the OSH Code and must register electronically within 60 days of the Code applying to it. A late fee applies after that.
- Deemed registration: if the officer does not act within the set time, registration is deemed granted. Under the Bihar rules you receive an e-certificate, and must report a change of ownership or management within 30 days.
- Already registered under a central labour law? Such registrations are deemed to be registrations under the Code.
- Other duties at 10 or more workers: appointment letters for every worker and annual health check-ups at the employer’s cost, under the Bihar rules.
If you have fewer than 10 workers
With the Shops Act gone, a small shop or office has no labour-department registration to take. Keep your old Shops Act certificate as a record; banks and landlords often still ask for proof of the business address. You still need:
- A trade licence from your municipal corporation or council under the Bihar Municipal Act, 2007.
- GST registration once turnover crosses the threshold, or earlier if you sell online or across states.
- FSSAI registration for any food business.
- Professional tax enrolment, explained below.
- Udyam registration if you want MSME benefits or a government scheme such as the Udyami Yojana.
Penalties under the OSH Code
The general penalty in section 94 of the OSH Code is ₹2 lakh to ₹3 lakh, plus ₹2,000 a day while the default continues. For a first offence the inspector must give you 30 days to comply before prosecution. Under Bihar’s risk-based inspection scheme, low-risk units can self-certify instead of facing routine inspections.
Professional tax still applies
| Annual salary or income | Professional tax a year |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | ₹1,000 |
| ₹5,00,001 to ₹10,00,000 | ₹2,000 |
| Above ₹10,00,000 | ₹2,500 |
Employers register in Form PT-I and businesses enrol in Form PT-IA within 7 days of becoming liable, under the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011. The annual return is due by 30 November. See our guide to professional tax in Bihar.
Frequently asked questions
Is shop and establishment registration required in Bihar in 2026?
No. The Act was repealed from 1 June 2026. Establishments with 10 or more workers register under the OSH Code instead.
Is my old Bihar shop registration certificate still valid?
Actions under the repealed Act are saved, so keep it as a record. It is no longer the registration the law requires.
What does a small shop in Patna need now?
A municipal trade licence, GST and FSSAI where they apply, and professional tax. No labour registration below 10 workers.
TAXAJ’s Bihar branch handles OSH Code registration, professional tax, GST and accounts for shops and businesses in Patna, Darbhanga and across Bihar. See our Bihar compliance services or talk to our Darbhanga office.
Last updated 26 October 2026. Sources: Bihar Shops and Establishments (Repeal) Act, 2026 (Bihar Act 15 of 2026), Bihar Gazette, 3 August 2026; Bihar Ordinance No. 1 of 2026; Occupational Safety, Health and Working Conditions Code, 2020, sections 3 and 94; Occupational Safety, Health and Working Conditions (Bihar) Rules, 2026; Bihar risk-based inspection scheme notified 14 August 2026; Bihar Tax on Professions, Trades, Callings and Employments Act, 2011. General information only; check the current rules before you act on them.
