Delhi Government proposes major business reforms with Ease of Doing Business Bill 2026
New Delhi, August 5
The Delhi Cabinet, chaired by Chief Minister Rekha Gupta, on Tuesday deliberated on the draft Delhi Ease of Doing Business Bill, 2026, aimed at creating a simpler, transparent and technology-driven framework for establishing and operating businesses in the national capital.
The proposed legislation seeks to reduce regulatory hurdles, streamline approvals and provide a more investor-friendly environment by introducing reforms such as self-certification for low-risk industries, time-bound clearances and reduced routine inspections.
Chief Minister Rekha Gupta said the objective of the proposed Bill is to ensure that entrepreneurs focus on expanding their businesses rather than spending time navigating multiple government offices.
"Our goal is to ensure entrepreneurs spend their time growing their businesses, not running from one government office to another," Gupta said.
The draft Bill has been prepared in line with the Government of India's Compliance Reduction and Deregulation Initiative (Phase II) and the spirit of the Jan Vishwas Bill, 2023. It proposes a Single Window System through which major approvals, registrations, licences, No Objection Certificates (NOCs) and utility connections can be accessed through a single online platform.
Under the proposed framework, services including building plan approvals, factory licences, fire clearances, water and electricity connections, RERA registrations and other permissions will be processed within fixed timelines.
The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) will function as the nodal agency responsible for coordinating the approval process among different departments and civic bodies.
A key feature of the Bill is the provision for deemed approval, under which applications not decided within the prescribed timeline will be considered approved automatically, allowing applicants to download approvals through the online portal.
The legislation also proposes self-certification for specified low-risk activities related to fire safety, building approvals, pollution permissions and low-tension electricity connections. Businesses registered under GST, FSSAI, MSMED Act or Labour Codes may also be exempted from obtaining multiple separate licences.
The Chief Minister said routine inspections would not be conducted for three years after registration under normal circumstances, with inspections limited to serious complaints. The Bill also proposes a Negative List approach, allowing businesses to undertake activities unless specifically prohibited.
Gupta said the proposed reforms represent a shift towards a trust-based governance model while retaining strict action against genuine violations. The Bill, after approval by the Lieutenant Governor and Delhi Cabinet, will be forwarded to the Ministry of Home Affairs for further action.
— ANI
Reader Comments
Sounds promising on paper, but my concern is about the inspection exemption. If routine inspections are waived for 3 years, what about safety standards? Small businesses comply when they know they'll be audited. We need robust oversight, not just trust-based governance.
Great to see Delhi catching up with global best practices. The single window system and negative list approach are straight from models that have worked well in Estonia and Singapore. This will definitely make Delhi more attractive for foreign investors too.
As a chartered accountant dealing with Delhi's compliance maze daily, I can vouch for how painful this process is. But please ensure the single window system actually works - we have seen similar portals before that crash more than they function. Test it properly first!
The trust-based approach is refreshing, but as an environmental researcher, I'm worried about the self-certification for pollution-related matters. Some things like hazardous waste management shouldn't be left to self-declaration. Let's hope the Negative List is comprehensive and enforced.
Ek baar karke dikhao, then we'll believe it! 😄 Every government promises reforms, but ground reality is different. Still, giving CM Gupta credit for trying - this is the kind of initiative that can actually boost Delhi's startup ecosystem. Fingers crossed!
S We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.