Trade License in Bihar: How to Get It?

calendar09 Dec, 2022
timeReading Time: 3 Minutes
Trade License in Bihar: How to Get It?

A trade license refers to a permit that makes any business or trade legally enforceable in a given region. The State government accords a trade license in Bihar to track and govern the business or trade. This write-up enlists every detail concerning this license, including procedure and documentation.

Relevance of Shop and Establishments Act

The state government refers to the norms of the Shop and Establishment Act for the grant of a trade license in Bihar. Every business, within 30 days of the commencement of operation, should secure this permit without fail. The said legislation oversees the following aspects of businesses falling under the trade license

  • The work timing of the hired labourers
  • The rest, interval, opening, closing of facility, overtime
  • Provisions for spread-over, rest intervals, opening, and closing hours closed days, national and religious holidays, and overtime work.
  • Employment of children, young persons, and women.
  • Paid leaves accessible to the workers
  • Employment and termination of service.
  • Maintenance of records and registers.
  • Obligations to be fulfilled by employer and workers on board
  • Safety protocols of the workplace
  • Display of notices
  • Employer’s accountability toward society

Entities mandated to secure a Trade License in Bihar

All commercial establishments falling under the given categories are mandated to secure a trade license in Bihar.

  • An establishment or administrative service boasting workers that fulfil certain lines of work within the confined workplace.
  • A hotel, cafe restaurant, eating house, or premises that serve food articles or beverages.
  • A theatre, cinema, or public amusement park

Documents required to apply for a trade license in Bihar

The following are the documents that serve as a mandatory annexure to the application for a trade license in Bihar.

  • Applicant identification and address proof
  • Company registration or certification such as partnership deed, incorporation certificate, AOA, MOA, and so on, depending on the type of business structure.
  • Tenancy proof of the premises
  • PAN number[1]
  • Bank Statement and cancelled cheque

Online Application Procedure to apply for a Trade License in Bihar

The applicant can follow the given procedural steps to easily apply for a trade license in Bihar:

  1. Head to the Nagar Seva Portal and select the option “New Trade license”
  2. Once the new window prompts on the screen, complete the login formalities or click “register here”
  3. Navigate to the license tab and select “Issuance of New Trade License”
  4. Then, the applicant must enclose all the requested details mentioned in the e-form, including the owner’s address and proof.
  5. Tap on the Submit button
  6. Perform fee estimation by taking the area of the premises into account. Once done, click the Submit button.
  7. Upload the requested document in the acceptable file format. Once done, submit the application. Do not forget to note the automatic unique application number.
  8. The next step will be document verification, which shall be conducted by the Urban Local Body officials.
  9. Upon successful document vetting, the authority will render the LOI prompting the applicant to submit the license fee.
  10. For free submission, facilitate the following detail.
    • UBL name
    • Collection center
    • Collection date
    • Payment method
    • Bank details
  11. Provide the required payment details.
  12. Tap on the Make Payment tab for online submission of LOI payment. A portal will generate the acknowledgement slip after successful fee submission.
  13. Post fee submission, the authority concerned shall check the detail and accordingly grant the trade license.

Offline Method to apply for trade license in Bihar

There is also an offline channel that lets users apply for a trade license. The steps below will help you with the same.

  • Download the application form concerning the trade license from the official portal
  • Next, the applicant must approach the authority concerned i.e. respective municipal corporation, for application filling.
  • While filling out the application, make sure that no mandatory fields are left vacant, as it can lead to the revocation of the application. Some of the mandatory form inclusions are the applicant’s name, address, and type of license.
  • Attested mandatory dossiers to the application as directed by the concerned authority.
  • Submit the prescribed fees alongside the application and documents concerning a trade license in Bihar.
  • After successful submission, the applicant will come across the transaction number to the registered contact number. The transaction number lets applicants keep the tap on the application progress.


It is evident that a trade license in Bihar plays a vital role in legalizing businesses and different trading avenues. Failure to secure this license can impose severe penalties on the business owner. So, its timely obtainment is an absolute necessity.

Read Our Article: How to Get Trade License Easily in India?

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