Delhi Ends 21-Year Renewal Rule to Boost Ease of Doing Business

Delhi Abolishes Mandatory Renewal Under Shops and Establishments Act

Delhi has introduced a major compliance reform by eliminating the long-standing 21-year renewal requirement under the Delhi Shops and Establishments Act, 1954 . The decision is aimed at reducing bureaucratic hurdles, easing regulatory processes and fostering a more business-friendly environment for traders and commercial establishments across the capital.

One-Time Registration Reform

The Delhi Labour Department announced that the renewal clause under Section 5 of the Act has been formally removed. Previously, all registered shops and establishments were required to renew their licenses once every 21 years—a process that often involved follow-up documentation, scrutiny and delays. With the abolition of this provision, registration now becomes a permanent, one-time process for businesses.

Benefits for Traders and Small Businesses

Officials highlighted that the move will particularly benefit small and medium enterprises, which form the backbone of Delhi’s urban economy. The elimination of renewal obligations saves time, reduces administrative effort and eliminates the uncertainty associated with periodic compliance. The government expects this reform to encourage greater formalisation within the commercial sector.

Fully Online, Paperless System

Delhi’s registration mechanism has been completely online since 2009, requiring no fees and no physical documentation . Registration certificates are generated instantly based on the information provided. With the removal of the renewal mandate, the system is expected to become even more efficient, providing seamless support to new and existing establishments.

Exam Facts

• Renewal under Section 5 of the Delhi Shops and Establishments Act has been abolished.

• Registration is now permanent, paperless and fee-free .

• The registration system has operated fully online since 2009 .

• Reform aims to enhance ease of doing business in Delhi .

Positive Response From Business Community

Trade bodies and associations have welcomed the simplification, noting that it removes a long-standing concern about tracking renewal deadlines. The Labour Minister affirmed that the reform will strengthen transparency and reduce unnecessary formalities, supporting Delhi’s vision of an efficient and business-supportive governance framework.