How Chhattisgarh Aims to Cut Red‑Tape for Small Enterprises

In a bold move to make business operations smoother, Chhattisgarh's Legislative Assembly approved the Ease of Doing Business Act, 2026. The statute introduces a systematic, risk‑based approach to licensing, promising faster clearances for low‑risk firms and preserving thorough inspections for projects deemed high risk.

Key provisions include the removal of annual renewal requirements for low‑risk licences, replacement with a risk‑adjusted, longer‑term permit, and the option for self‑certification by authorised professionals. This shift reduces the frequency of departmental visits and speeds up the overall approval timeline.

The act also streamlines water supply permissions for MSMEs, allowing self‑declaration, and simplifies registration of societies and firms through a time‑bound process backed by expert certification. Should a department miss a decision deadline, the application will automatically receive approval, preventing unnecessary hold‑ups.

A three‑layer oversight mechanism has been instituted: a state committee chaired by the Chief Secretary, district‑level committees led by Collectors, and a guiding council presided over by the Chief Minister. This structure aims to balance swift service delivery with adequate monitoring.

Analysts estimate that more than 1.5 million micro, small, and medium enterprises stand to gain from reduced compliance costs and faster market entry, positioning Chhattisgarh as a model for business‑friendly reforms in India.