Patna: The Bihar government has exempted small shops and establishments employing fewer than 10 workers from mandatory registration, in a move aimed at reducing regulatory burdens and improving the ease of doing business in the state.
The decision follows the repeal of the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025, through an ordinance approved by Governor Lt Gen (Retd) Syed Ata Hasnain.
Under the new framework, registration will be mandatory only for shops and commercial establishments employing 10 or more workers, irrespective of whether they are located in urban or rural areas.
Alignment With National Labour Code
According to the notification issued by the state government, the ordinance received the Governor’s assent on May 28 and came into effect thereafter.
The move aligns Bihar’s labour regulations with the Occupational Safety, Health and Working Conditions Code, 2020, enacted by the central government as part of a broader overhaul of labour laws across the country.
Under the previous system, even businesses employing one or two workers were required to register under the Shops Act. Business owners often had to complete separate registration procedures for the same commercial activity, creating what officials described as an unnecessary compliance burden.
The state government said repealing the old law became necessary because of overlapping provisions between state legislation and the new national labour code.
Government Seeks To Reduce Compliance Burden
Officials said the reform is intended to simplify regulatory processes, encourage entrepreneurship and make Bihar more attractive to investors.
The government believes that reducing procedural hurdles will help accelerate industrial and economic activity while improving the business environment for small enterprises.
As the Bihar legislature was not in session, the measure was implemented through an ordinance route.
Samrat Chaudhary Pushes Deregulation Agenda
The announcement comes amid a broader push by Chief Minister Samrat Chaudhary to streamline regulations and reduce compliance requirements across government departments.
Speaking at a recent high-level review meeting on compliance reduction and deregulation, the Chief Minister said industries, investors, startups, commercial establishments and citizens should not have to make repeated visits to government offices to access services.
He directed departments to prepare proposals for simplifying licensing procedures, approvals and inspection systems under their respective jurisdictions.
“The government’s role should be to act as a facilitator for citizens and entrepreneurs,” Chaudhary said, stressing the need to eliminate unnecessary compliance requirements and create a more investment-friendly environment.
Focus On Digital Governance
The Chief Minister also instructed departments to strengthen digital platforms, expand self-certification mechanisms and ensure greater use of online approvals and time-bound service delivery.
He called for an end to the practice of repeatedly seeking the same information from businesses and citizens at different administrative levels, arguing that such reforms would improve efficiency and reduce delays.
The government expects the changes to ease compliance costs for small businesses while supporting Bihar’s efforts to attract investment and promote economic growth.
