Archive · 20 Aug 2026
Centre Plans Longer Licences to Reduce Business Compliance Burden
The government wants some business licences to last much longer.
Instead of renewing them every year or after a short period, companies may receive licences valid for 10 to 15 years.
Businesses would still pay the required fees each year.
However, they would not have to submit the same renewal paperwork repeatedly.
The plan could cover environmental, pharmaceutical, explosives and standards-related permits.
Hospitality businesses may benefit because they often need many different approvals.
The government does not plan to replace all permits with one single licence.
It hopes the changes will make it easier for businesses to operate in India.
The Centre is preparing longer validity periods of 10 to 15 years for several business permits in FY27.
The proposed reform covers environmental, pharmaceutical, explosives and Bureau of Indian Standards certifications.
Companies would continue paying annual fees but would not repeatedly submit renewal applications during the validity period.
The plan is overseen by a committee headed by NITI Aayog member and former Cabinet Secretary Rajiv Gauba.
Officials say individual permits will remain, while longer validity periods aim to ease compliance, especially in hospitality.
- Who
- The Centre, with reforms overseen by a committee headed by NITI Aayog member Rajiv Gauba.
- What
- A proposed overhaul would extend the validity of several business licences and permits to 10 to 15 years.
- When
- The changes are being prepared for FY27.
- Where
- Across India, covering regulations administered by central, state and local authorities.
- Why
- To reduce repeated paperwork, ease compliance burdens and improve ease of doing business.
- Proposed validity
- Several permits could be valid for 10 to 15 years.
- Annual fees
- Companies would continue paying applicable fees annually.
- Renewal applications
- Businesses would not repeatedly submit renewal applications during the longer validity period.
- Regulatory coverage
- The exercise includes environment, pharmaceuticals, explosives and Bureau of Indian Standards certifications.
- Oversight
- A high-level committee on non-financial regulatory reforms is chaired by Rajiv Gauba.
- Hospitality approvals
- Food and beverage establishments may need nearly 30 licences over a project's lifecycle, while hospitality projects may require around 60 permissions.
- Single licence plan
- Officials said individual approvals will remain rather than being replaced by one unified licence.