Cabinet approval and next steps

The Delhi Cabinet, chaired by Chief Minister Rekha Gupta, has approved a new bill aimed at simplifying how businesses obtain approvals, registrations, licences and other clearances in the capital. The legislation, referred to in official statements as the Ease of Doing Business Bill, was passed at a Cabinet meeting chaired by Gupta on Tuesday, according to a statement from the Chief Minister's Office.

After Cabinet approval, the Bill will be sent to the Ministry of Home Affairs for further consideration, as reported by the Chief Minister's Office and The Economic Times.

Single-window system and nodal agency

A key feature of the proposed law is a single-window online system through which businesses can apply for multiple approvals. According to ANI, this will cover services such as building plans, fire clearances, and water, sewer and electricity connections. The Economic Times described the system as a "simple and user-friendly online platform" for approvals, registrations, no-objection certificates, consents, licences and other operational requirements.

The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) will act as the nodal agency for business approvals under the system, as reported by ANI. The government aims to consolidate various business-related services onto a single technology-driven platform.

Faster approvals and deemed approval provision

The Bill proposes faster approvals for low-risk activities. For activities listed under Schedule-3, approvals, licences and no-objection certificates will be granted immediately after submission of the application in eligible cases, with self-declaration allowed for specified low-risk categories, according to ANI.

For other activities, approvals must be issued within timelines prescribed under the Right to Timely and Easy Delivery of Services to Citizens Act, 2026. The Bill includes a provision for deemed approval if the competent authority fails to decide within the stipulated period, as reported by ANI.

Reducing duplicate registrations and inspections

The proposed law also seeks to reduce duplicate registrations. Enterprises already registered under the Goods and Services Tax, the Food Safety and Standards Authority of India, the MSME Development Act or labour codes will not need separate registrations for trade, health-trade, eating houses, or shops and establishments, according to both ANI and the Chief Minister's Office.

Under the proposed inspection system, routine inspections will not be conducted for three years after registration, except in cases involving serious complaints, as reported by ANI. The Bill also adopts a negative-list approach, under which businesses would be free to operate any activity at any location unless the activity is specifically listed as prohibited.

Rationale and expected impact

Chief Minister Rekha Gupta said the reforms would reduce the time, cost and uncertainty involved in setting up and running businesses, while helping attract investment and create employment, as reported by ANI and The Economic Times. The Bill was prepared as part of the second phase of a Government of India initiative to reduce regulatory and compliance burdens, according to the Chief Minister's Office.