Traditionally(or ritually) it starts at oct 8 (called ghatasthapana) and thats when most of the schools, colleges, 'few' offices are closed. Everything will be almost normal except overcrowded marketplace due to heavy shopping. People start going out of valley to their ancestral homes.
But oct 14 is when everything shuts down. All remaining people go back home for celebration.Banks,shops,offices - both government and private - everything closed.Streets almost empty.