Pursuant to a government order dated 11 June 2019 (GO), the Government of Karnataka (Government) has discontinued the requirement of renewing the registration obtained under the Karnataka Shops and Commercial Establishments Act 1961 (Karnataka S&E Act). As per the GO, the registration obtained under Karnataka S&E Act would stand automatically renewed upon submission of a self-certification form and payment of the renewal fees by the concerned establishment.
Pursuant to a government order dated 11 June 2019 (GO), the Government of Karnataka (Government) has discontinued the requirement of renewing the registration obtained under the Karnataka Shops and Commercial Establishments Act 1961 (Karnataka S&E Act). As per the GO, the registration obtained under Karnataka S&E Act would stand automatically renewed upon submission of a self-certification form and payment of the renewal fees by the concerned establishment.
The GO comes in the wake of the State Business Reform Action Plan 2019 (BSRAP 2019) released by the Department for Promotion of Industry and Internal Trade, Government of India (DPIIT) in February this year, wherein a number of reforms were recommended to ensure that states cut down on red tape and usher in a conducive business environment for commercial establishments. The DPIIT set 31 March 2019 as the deadline for implementation of the reforms suggested in the BSRAP 2019. Some of the key recommendations under the BSRAP 2019 include:
The GO seems to be a positive move to promote ease of doing business in the state by reducing the delays arising out of administrative processes for business registrations. The exemption, if effectively implemented on the ground-level, would facilitate avoidance of operational delays due to pendency of renewal applications by establishments based in Karnataka. This comes in the backdrop of a similar move by the Government of Andhra Pradesh wherein it issued a notification dated 14 February 2019 exempting all shops and establishments in the state from undergoing the process of renewing the registration certificate obtained under the Andhra Pradesh Shops and Establishments Act 1988.
- Anshul Prakash (Partner) and Deeksha Malik (Associate)
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