Delhi Cabinet Approves Business Reform Bill to Simplify Licences and Cut Red Tape
Starting a business in Delhi may become easier with the introduction of a new Ease of Doing Business Bill. The Delhi Cabinet, chaired by Chief Minister Rekha Gupta, approved the draft Ease of Doing Business Bill, 2026, on Wednesday. The proposal has been sent to the Union Home Ministry for consideration and enactment.
The Ease of Doing Business Bill, 2026, if enacted, will help simplify procedures, quicken approvals, and promote transparency for starting and running businesses in Delhi.
It will provide a single-window digital portal where applicants can apply for registrations, licenses, No Objection Certificates (NOCs), and other clearances without approaching different government departments for the same.
With the implementation of the draft Ease of Doing Business Bill 2026, approvals for factory licenses, fire clearances, building approvals, electricity, water, gas, and sewer connections, and RERA registrations, among others, will be done in a single portal within stipulated timelines.
The most notable innovation in the 2026 Ease of Doing Business Bill is the deemed approval provision. In the case where the relevant authority does not approve or reject an application, it will be deemed to have been approved. In such cases, the applicant will be able to download the approval certificates directly from the portal. This is expected to reduce the number of pending approvals and clearances in government departments.
The bill also proposes self-certification of certain procedures for industries and activities classified as low risk. This implies that for low-risk businesses, applications for fire clearance, pollution control, building approvals, and low-tension electricity connection can be certified through self-declaration. Furthermore, companies will be exempted from inspections for the first three years, except for complaints from stakeholders.
The proposed 2026 Ease of Doing Business Bill will eliminate the need for multiple licenses and registrations for businesses already registered with Goods and Service Tax (GST), FSSAI, MSMED Act, and Labour Codes. It is expected that the removal of duplication of licenses and registrations will ease some compliance requirements, especially for MSMEs, and contribute significantly to boosting business creation in Delhi.
The Delhi State Industrial and Infrastructure Development Corporation will have overall responsibility for the Ease of Doing Business Bill, 2026. The draft bill proposes the relaxation of some development control regulations in notified industrial areas to promote industrialization and expansion of industries.
Ease of Doing Business Bill, 2026, is the culmination of the central government’s Compliance Reduction and Deregulation Initiative (Phase II), which has so far resulted in the Jan Vishwas Bill, 2023, aimed at deregulating various businesses and professions. It is envisioned that the Ease of Doing Business Bill, 2026, when enacted, will provide a business-friendly environment in Delhi State wherein approvals are time-bound, standardized, and simplified, thus enabling Indian entrepreneurs to create sustainable businesses.
