Simplifying Business Compliance in Delhi: Abolishing the 21-Year Renewal Requirement

Delhi Abolishes 21-Year Renewal Requirement Under Shops and Establishments Act

The Delhi government has eased compliance for businesses by abolishing the mandatory 21-year renewal requirement under the Delhi Shops and Establishments Act, 1954. This reform aims to simplify procedures, reduce regulatory burden, and support a smoother business environment in the national capital.

Key Policy Change

• The Labour Department has removed the renewal clause under Section 5 of the Act.
• Previously, every establishment was required to seek renewal once every 21 years from the date of registration.
• With this reform, registration is now converted into a one-time process, eliminating the need for future renewals.

Impact on Business Operations

Officials stated that the removal of the renewal requirement will directly benefit traders by eliminating a long-standing procedural hurdle. The government expects the simplified framework to significantly enhance the ease of doing business, especially for small and medium commercial establishments across Delhi.

Fully Digital Registration System

• The registration system continues to operate entirely online.
• No documents or fees are required, and certificates are generated instantly based on the information provided by applicants.
• This digital process has been in place since 2009 and is expected to function even more efficiently with the abolition of the renewal rule.

Exam-Oriented Key Facts

• Renewal under Section 5 of the Delhi Shops and Establishments Act has been abolished.
• Registration is now a one-time, paperless, and fee-free process.
• The registration system has been fully online since 2009.
• The reform aims to promote ease of doing business in Delhi.

Support From Trade Stakeholders

The Labour Minister stated that traders will gain substantial relief as they will no longer have to monitor renewal cycles. The government expects the reform to increase transparency, encourage formalisation, and motivate more entrepreneurs to register their businesses in Delhi.