Starting a Proprietorship in Bihar: Shops and Establishments, PT and Trade Licence

A proprietorship doesn't need incorporation, but it does need the right registrations — and in Bihar, several of those are state and local. This guide covers what a proprietor in Bihar typically needs.

Shops and Establishments Registration

Bihar's shops and establishments law applies to commercial establishments in the state, including a proprietor's shop or office. Register online with the state Labour Resources Department. It's one of the documents banks commonly accept as proof of your business for a current account.

Professional Tax

Bihar levies Professional Tax. As a proprietor, you enrol and pay PT for yourself, and if you employ staff, register as an employer to deduct and pay PT on their salaries.

Trade Licence

A shop or office within Patna Municipal Corporation or another municipal area usually needs a trade licence from the local body. It's tied to your premises and usually renewed every year.

GST

Register for GST once your aggregate turnover crosses the threshold. In Bihar, the threshold is ₹40 lakh for goods and ₹20 lakh for services. Register earlier if you make inter-state supplies of goods or sell through e-commerce platforms.

Udyam

Udyam registration is free and gives you MSME status, with protection on delayed payments and access to the Bihar Micro and Small Enterprises Facilitation Council.

Sector Licences

• Food businesses: FSSAI registration or licence.
• Pharmacies: drug licence from the state drugs control authority.
• Importers and exporters: IEC.

Bank Account

With two registrations in the business's name — for example, Shops and Establishments and Udyam, or GST — you can open a current account in your trade name.

A Checklist for Proprietors in Bihar

1. Register under the shops and establishments law.
2. Enrol for Professional Tax.
3. Get a trade licence from your local body.
4. Register for GST when you cross ₹40 lakh for goods or ₹20 lakh for services, or earlier if required.
5. Get Udyam registration.
6. Open a current account in the trade name.

Getting Help

Think Filing sets up proprietorships in Bihar with all the state and local registrations they need.