Examiner Bureau | Srinagar:
The Jammu and Kashmir government has proposed a major overhaul of the Union Territory’s business regulatory framework, seeking to replace the existing permission-based approach with a rule-based system featuring time-bound approvals, deemed clearances and a reduced compliance burden for enterprises.
The proposed Jammu and Kashmir Ease of Doing Business Bill, 2026, published in the Official Gazette, aims to enable citizens and enterprises to “plan, invest, and work with confidence” while promoting ease of doing business and ease of living. The legislation seeks to consolidate and amend existing laws and regulatory procedures governing enterprises.
According to the Statement of Objects and Reasons, the Centre has undertaken a broader exercise to reduce the compliance burden on businesses and citizens by simplifying and speeding up regulatory processes without compromising essential safeguards.
Jammu and Kashmir has implemented 20 of the 23 priority reforms identified under Phase I of the Centre’s deregulation and compliance-reduction initiative, the statement says. Two of the remaining three reforms were considered inapplicable to J&K following the notification of the new Labour Codes, while the government decided not to implement the third concerning third-party inspection by Fire and Emergency Services.
For Phase II, the Centre has identified 23 priority areas under its initiative linked to the objective of Viksit Bharat. The J&K government says the proposed legislation would facilitate implementation of 12 of these areas.
The government further states that six priority areas and one optional area are already regulated under different laws and would otherwise require legislative approval on seven separate occasions. The proposed Bill seeks to consolidate these measures into a single Cabinet approval and legislative approval.
A key feature of the proposed framework is the principle of “Permission by Exception”.
Under the proposed system, an enterprise would generally be free to undertake an activity unless it is expressly prohibited by law. Prior permission, approval or restriction would be imposed only where justified by law in furtherance of a legitimate public interest.
The Bill also proposes risk-based regulation, under which the intensity and frequency of regulatory scrutiny and inspections would have to remain proportionate to the material risk associated with an activity.
The legislation proposes a significant change in the treatment of administrative delays by introducing a presumption of approval.
Where an application is not disposed of within the prescribed period, the enterprise would, on expiry of the stipulated timeframe, become entitled to the relief, permission, registration, licence, service or other outcome sought.
The Bill specifically provides that an enterprise should not be prejudiced by administrative silence or delay.
The process would begin with a Declaration of Intent by an eligible enterprise. A District Empowered Committee would process the application and issue a Certificate of In-Principle Approval.
For new enterprises located in approved industrial parks, the certificate is proposed to be issued within three working days.
For new enterprises outside approved industrial parks, the decision would have to be taken within 30 working days, while existing enterprises would have a 45-working-day timeline.
Failure to take a decision within the prescribed period would result in deemed issuance of the in-principle approval.
The Certificate of In-Principle Approval would remain operative for three years as an approval under the applicable J&K laws, regulations and bye-laws, during which the enterprise could obtain regular approvals from the concerned departments.
The Bill also proposes a three-year moratorium on inspections and coercive measures relating to approvals, licences, registrations and similar requirements after registration of an enterprise.
Any such action during the moratorium would require permission from the Deputy Commissioner.
The protection would not extend to cases involving serious complaints. In such cases, an inspection could be undertaken after obtaining written approval and recording the reasons for the action.
The proposed legislation introduces a “One State Principle”, under which the government would function as a single entity for regulatory compliance.
Authorities would not be permitted to repeatedly seek information, documents, approvals or processes that are already available with, or have been furnished to, another government authority in J&K.
The proposed framework is intended to reduce duplication and prevent enterprises from having to approach multiple departments for the same information or regulatory requirement.
The District Empowered Committee would have a significant role under the proposed system.
Besides processing applications for in-principle approvals, the committee could, in specified circumstances, overrule a rejection by a competent district-level authority or grant an approval where the competent authority has failed to act within the prescribed timeframe.
The provision is aimed at addressing administrative delays and ensuring that enterprises have a mechanism for resolving regulatory issues at the district level.
The Bill proposes the creation of a Union Territory Ease of Doing Business Council, headed by the Chief Minister and comprising ministers in charge of key departments and the Chief Secretary.
An Executive Committee headed by the Chief Secretary would oversee implementation of the framework and act as a single point of contact for investors.
It would coordinate with district-level committees to ensure time-bound approvals and monitor turnaround times for licences and approvals processed through the Single Window System.
The Executive Committee would also have the power, subject to the provisions of the proposed law, to rationalise, add, delete or revise the number of approvals, permits, licences and no-objection certificates required by enterprises.
The proposed law seeks to reduce duplication among different regulatory authorities.
For instance, an enterprise registered under the Food Safety and Standards Act, 2006, would not require a separate trade, health trade, eating house or restaurant licence from the local municipal body, subject to conditions specified in the Bill.
Similar exemptions from additional local licensing requirements are proposed for enterprises registered under specified central labour and social-security laws.
Enterprises registered with GST authorities would also be exempt from separate municipal trade licences under the conditions prescribed in the proposed legislation.
The Bill proposes greater flexibility in notified industrial areas, including removal of restrictions relating to floor area ratio, setbacks, ground coverage and height, subject to the framework prescribed for such areas.
Industrial-area authorities would also be empowered to provide infrastructure and permit long-term leases of industrial plots for periods of up to 99 years.
The provisions are aimed at facilitating industrial development and providing greater certainty to enterprises setting up operations in designated industrial areas.
Despite the proposed deregulation, the Bill retains several restrictions and statutory safeguards.
A negative list would continue to apply to specified activities in residential, commercial, agricultural, institutional and other land-use categories.
The proposed framework would also retain the applicability of key environmental, forest and wildlife laws, including the Environment (Protection) Act, Water Act, Air Act, Forest (Conservation) Act and Wildlife (Protection) Act.
Thus, the permission-by-exception model would operate within existing statutory safeguards in areas where environmental, ecological and other public-interest considerations require regulatory oversight.
The government has positioned the proposed legislation as part of a wider effort to make Jammu and Kashmir more conducive to investment and enterprise by reducing regulatory uncertainty and compliance requirements.
The proposed combination of time-bound approvals, deemed clearances, a three-year inspection moratorium, single-window coordination and reduced duplication is intended to allow businesses to establish and operate with greater certainty.
The Statement of Objects and Reasons says the legislation seeks to enable enterprises to plan, invest and work with confidence while fostering ease of doing business and ease of living.
The government has also linked the proposed framework to its broader objectives of attracting investment, generating employment and sustaining long-term economic growth in Jammu and Kashmir.
