Our goal is to ensure entrepreneurs spend their time growing their businesses, not running from one government office to another: CM Rekha Gupta

Historic step to make doing business in Delhi simpler and more transparent: Cabinet deliberates on draft Delhi Ease of Doing Business Bill, 2026

New Delhi, 5 August 2026- The Delhi Cabinet, chaired by Chief Minister  Rekha Gupta on Tuesday, deliberated on the draft Delhi Ease of Doing Business Bill, 2026. The proposed legislation aims to introduce wide-ranging reforms to make Delhi the easiest place in the country to establish and operate an enterprise. It seeks to simplify the existing processes involved in setting up and running businesses by making them transparent, time-bound and technology-driven.

Chief Minister Rekha Gupta said the Delhi Government’s objective is to build an administrative system where entrepreneurs and investors spend their time expanding their businesses rather than visiting government offices. The Government is working towards creating a system where approvals are easier to obtain, procedures are clear, decisions are taken within fixed timelines and unnecessary compliance burdens are eliminated. These reforms, she said, will encourage fresh investment, support industrial expansion and generate large-scale employment in Delhi.

The Chief Minister said the proposed legislation has been prepared under the Government of India’s Compliance Reduction and Deregulation Initiative (Phase II) and is in line with the spirit of the Jan Vishwas Bill, 2023. Through this important reform, the Delhi Government is taking a significant step towards creating a modern, transparent and investment-friendly ecosystem for industries and investors.

She said the proposed law will do away with the need for businesses to approach multiple departments for approvals, registrations, licences, No Objection Certificates (NOCs) and other permissions. A Single Window System will be established to provide all major business approvals, registrations, NOCs and utility connections through a single online portal. Services such as building plan approvals, factory licences, fire clearances, water, sewer and electricity connections, RERA registrations and co-operative society registrations, among others, will be processed through this portal within prescribed timelines.

The Chief Minister said the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) will be entrusted with operating the entire system. It will serve as the single accountable nodal agency for the entire approval process, from the receipt of applications to the grant of final approvals, while all concerned departments and civic agencies will coordinate through it.

One of the Bill’s most significant features, she said, is the provision for deemed approval. If the competent authority fails to decide an application within the prescribed timeframe, the relevant approval, registration or NOC will be deemed to have been granted automatically, and the applicant will be able to download it directly from the online portal. This will eliminate unnecessary pendency of files and delays in decision-making.

She further said that a self-certification system will be introduced for low-risk activities. Under specified categories, procedures relating to fire safety, building plan approvals, pollution-related permissions and low-tension electricity connections will be completed on the basis of self-declaration. This will enable small, low-risk and low-hazard enterprises to commence operations without unnecessary delays. Enterprises already registered under GST, FSSAI, the MSMED Act or the Labour Codes will not be required to obtain separate trade licences, health trade licences, eating house licences or Shops and Establishments registrations. This will eliminate multiple licensing requirements for the same purpose and significantly reduce the compliance burden on businesses.

Chief Minister Rekha Gupta said that, under normal circumstances, there will be no routine inspections for three years after registration. Inspections will be carried out only in the event of complaints of a serious nature. This will protect industries from unnecessary inspections while promoting a trust-based administrative framework. She said the proposed legislation will also introduce a Negative List approach. This means that an enterprise will be free to undertake any activity unless it is specifically prohibited under the published Negative List. The provision is intended to provide businesses with a clearer, simpler and more predictable regulatory environment.

The Government, she added, will not ask applicants to submit any document or information that is already available with any department of the Delhi Government. Citizens and entrepreneurs will no longer be required to furnish the same information repeatedly. The Chief Minister said the Bill also proposes to relax several development control norms in notified industrial areas by removing restrictions related to Floor Area Ratio (FAR), ground coverage, setbacks and building height to facilitate industrial expansion. In addition, the responsibility for common fire safety infrastructure will rest with DSIIDC instead of individual industrial units, helping reduce the cost of expansion.

She further said that all conditions imposed on an enterprise will be proportionate to the actual level of risk involved, ensuring relief from unnecessary, arbitrary and one-size-fits-all compliance requirements. The Government may also notify a common validity period for all licences and NOCs, eliminating the need for renewals at different intervals. Verification and certification services may also be provided through empanelled professionals, including professionals empanelled in other States, which will enhance capacity and reduce the time taken for approvals.

Chief Minister Rekha Gupta said the Delhi Ease of Doing Business Bill, 2026 marks a historic shift in the Government’s relationship with enterprises, from one based on control and suspicion to one founded on trust, cooperation and facilitation. At the same time, effective and strong deterrent provisions against genuine violations will continue to remain in place. She said the Delhi Government is committed to positioning Delhi among the country’s most industry-friendly, investment-friendly and employment-generating destinations. The proposed legislation will reduce the time, cost and uncertainty involved in doing business, strengthen investor confidence, attract new industries and play a significant role in generating large-scale employment. Following approval by the Hon’ble Lieutenant Governor and the Delhi Cabinet, the Bill will be forwarded to the Ministry of Home Affairs for the necessary further action.

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