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Punjab Eases Business Compliance for 95% of Establishments
6 Dec
Summary
- Establishments with up to 20 workers are now exempt from most Act provisions.
- Shopkeepers are freed from the 'Inspector Raj' with amended regulations.
- Registration approval for larger businesses is now streamlined to 24 hours.
The Centre has extended the Punjab Shops and Commercial Establishments (Amendment) Act to Chandigarh, signaling a significant reduction in compliance burdens for small businesses. This legislative change is designed to enhance the ease of doing business across the state, marking a pivotal moment for commercial enterprises.
Specifically, the amendment provides exemptions from all provisions of the Act for establishments employing up to 20 workers. This category represents approximately 95% of all shops and commercial establishments in Punjab, effectively freeing the vast majority of businesses from stringent regulatory requirements and the perceived 'Inspector Raj'.
Furthermore, the registration process has been notably simplified. Businesses with 20 or more employees will now receive deemed approval for registration within 24 hours of application submission. For smaller establishments, the requirement has been reduced to simply providing basic information, eliminating the need for formal registration altogether.
