The Delhi Cabinet has deliberated on and approved a draft legislation, the Delhi Ease of Doing Business Bill, 2026, designed to significantly streamline the process of establishing and operating businesses within the national capital. The proposed bill introduces a range of reforms, including provisions for self-certification for lower-risk industries, deemed approvals in cases of official delays, and an initial three-year exemption from routine inspections for newly established enterprises.
Information was available with The Chenab Times indicating that the legislation aims to foster a transparent, time-bound, and technology-driven environment for business approvals, simultaneously reducing the compliance burden on industries and investors. This move is part of the government’s broader strategy to enhance the ease of doing business in Delhi and attract more investment.
The Chief Minister, Rekha Gupta, stated that the government’s primary objective is to enable entrepreneurs to dedicate more time to business expansion rather than navigating the complexities of multiple government offices. She emphasized that the reforms are intended to create a system where obtaining approvals is straightforward, procedures are clearly defined, decisions are made within stipulated timelines, and unnecessary compliance requirements are eliminated.
According to the Chief Minister’s Office, the proposed bill seeks to boost investment, facilitate industrial growth, and generate employment opportunities by simplifying business operations. The reforms are expected to create a more conducive business ecosystem in Delhi.
A cornerstone of the proposed legislation is the introduction of a Single Window System. This integrated online portal will manage the processing of all necessary approvals, licenses, No Objection Certificates (NOCs), registrations, and utility connections. Services covered under this system include building plan approvals, factory licenses, fire clearances, water, sewer, and electricity connections, RERA registrations, and co-operative society registrations, consolidating various application processes into one platform.
The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) has been designated as the nodal agency responsible for processing applications and coordinating efforts among various departments and civic bodies. This centralisation is expected to improve efficiency and reduce delays in the approval process.
A significant feature of the bill is the concept of ‘deemed approvals’. Under this provision, if an authority fails to provide a decision on an application within the stipulated timeframe, the approval or registration will be automatically considered granted. Applicants will then be able to download the necessary documents directly from the online portal, removing dependency on bureaucratic timelines.
The draft legislation also incorporates self-certification for a range of low-risk activities. This includes permissions related to fire safety, building plans, pollution control, and low-tension electricity connections. Furthermore, businesses that are already registered with relevant authorities such as GST, FSSAI, the MSMED Act, or Labour Codes will be exempted from obtaining separate trade licenses, health trade licenses, eating house licenses, or Shops and Establishments registrations, thus reducing redundancy in compliance.
Newly registered enterprises will benefit from a three-year period free from routine inspections. This exemption will apply unless there are serious complaints that necessitate an investigation, fostering a trust-based regulatory framework for new businesses. The government believes this approach will encourage a more proactive and less burdensome regulatory environment for startups.
The bill also introduces a ‘Negative List’ approach, which permits businesses to undertake any activity unless it is explicitly prohibited by a notified list. This approach aims to encourage innovation and business activities by default, with prohibitions clearly defined rather than requiring explicit permissions for every action.
To further reduce compliance burdens, government departments will be prohibited from requesting documents that are already in possession of another Delhi government department. This measure aims to prevent the duplication of paperwork and streamline information sharing between government entities. Additionally, the bill proposes relaxation of development control norms in designated industrial areas, easing restrictions on Floor Area Ratio (FAR), ground coverage, setbacks, and building height. Responsibility for common fire safety infrastructure in these areas will be transferred to DSIIDC, thereby lowering costs for individual industrial units.
The government may also establish a common validity period for various licenses and NOCs. Furthermore, verification and certification processes could be facilitated through empanelled professionals, including those registered in other states, adding flexibility to regulatory procedures.
Chief Minister Gupta described the proposed law as a “historic shift” in the government’s engagement with businesses, transitioning from a system based on control to one founded on trust and facilitation, while maintaining strict measures against genuine violations. The bill is slated to be sent to the Ministry of Home Affairs for approval after it receives the endorsement of the Lieutenant Governor and the Delhi Cabinet.
❤️ Support Independent Journalism
Your contribution keeps our reporting free, fearless, and accessible to everyone.
Or make a one-time donation
Secure via Razorpay • 12 monthly payments • Cancel anytime before next cycle
(We don't allow anyone to copy content. For Copyright or Use of Content related questions, visit here.)
The Chenab Times News Desk
