The Punjab Right to Business Act, 2020 aims to enhance ease of doing business in Punjab by reducing regulatory burdens on newly incorporated Micro, Small, and Medium Enterprises (MSMEs). For a period of three years and six months, MSMEs can establish and operate with a Certificate of In-Principle Approval, based on self-declaration, exempting them from certain approvals and inspections.

Key Features of the Act

• Objective: Reduce compliance requirements for MSMEs to encourage business growth.
• Eligibility: Applicable to new MSMEs intending to establish operations in Punjab within approved industrial parks and notified master plans.
• Validity: The Certificate of In-Principle Approval remains valid for three and a half years.
• Exemptions: MSMEs receive temporary exemptions from various regulatory approvals and inspections.

Regulatory Approvals and Exemptions

During the certificate’s validity period, MSMEs are exempt from:

• Building plan approval and occupancy certificate
• Trade license registration
• Change of land use approvals
• Fire No Objection Certificate
• Factory building plan and shop establishment registration

However, MSMEs must secure all necessary approvals within the three-and-a-half-year period to continue operations without disruptions.

Compliance and Consequences

Businesses are responsible for maintaining compliance with laws and regulations. Providing false information or failing to obtain necessary approvals within the validity period may result in revocation of the Certificate of In-Principle Approval. If revoked, enterprises must comply with standard regulatory procedures, including potential penalties.

Grievance Redressal and Support

A grievance redressal mechanism is available, allowing enterprises to appeal against application rejections or inspection-related issues. The Punjab Bureau of Investment Promotion (PBIP) and District Industries Centres provide facilitation and assistance.

Conclusion

The Punjab Right to Business Act, 2020 significantly eases the regulatory framework for MSMEs, fostering business growth and economic development. By streamlining approvals and inspections, Punjab continues to position itself as an investor-friendly state, ensuring a smoother and more efficient business setup process.