LexThe Punjab Right To Business Act
Punjab · state statute
Open in Lexace · Ask the AI about this actGOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS
THE PUNJAB RIGHT TO BUSINESS ACT, 2020
(PUNJAB ACT 1 OF 2020)
(As amended upto the 15thNovember, 2025)
2025
THE PUNJAB RIGHT TO BUSINESS ACT, 2020
Sections CONTENTS
1. Short title and commencement
2. Definitions
3. Establishment of District Bureau of Enterprise
4. Powers and Functions of District Bureau of Enterprise
5. Nodal Agency
6. Powers and Functions of District Nodal Agencies
7. Filing of Declaration of Intent
8. Effect of the Certificate of in Principle Approval
9. Scrutiny Committee
10. Issuance of Certificate of in Principle Approval
11. Revocation of a Certificate of in Principle Approval
12. Appeal
13. Protection of action taken in good faith
14. Power to make rules
15. Power to remove difficulties
16. Exemption
17. Savings
18. Act to override other laws
19. Fees
THE PUNJAB RIGHT TO BUSINESS ACT, 2020
(Punjab Act No. 1 of 2020)
[Received the assent of the Governor of Punjab on the 31st day of
January, 2020, and was first published in the Punjab Government Gazette
(Extraordinary) dated the 6th February, 2020]
1 2 3 4
Year No. Short Title Whether repealed or otherwise
affected by the legislation
2020 1 The Punjab Right
to Business Act,
2020
Amended by Punjab Act No.1 of
2022
Amended by Punjab Act No. 14 of
2025
An Act to provide for ease of doing business for the 1 [Eligible
Enterprises] through an enabling eco -system for self -declaration,
exemptions, speedier approvals and inspections to establish and operate in
the State of Punjab and matters connected therewith or incidental thereto.
BE it enacted by the Legislature of the State of Punjab in the Seventieth
Year of the Republic of India as follows: -
1. (1) This Act may be called the Punjab Right to Business Act, 2020.
(2) It shall come into force on and with effect from the date of its
publication in the Official Gazette.
2. In this Act, unless the context otherwise requires, -
(a) 'Approval' means acknowledgment, no objection certificate,
consent, registration, permission, license and such other similar
instrument by whatever name called, 2[required under any law]
with regard to the establishment or operations of an enterprise in
the State of Punjab;
(b) “Approved Industrial Park” means an Industrial Area, Industrial
Focal Point, Industrial Estate, Mixed –use Industrial Park,
1 Substituted for words “newly incorporated Micro, Small and Medium Enterprises” by Punjab Act No. 14 of
2025, Section 2
2 Substituted for words “required under any Punjab law” by Punjab Act No. 14 of 2025, Section 3(i)
Short title and
commencement.
Definitions.
Special Economic Zone (SEZ), Textile Park, Biotech Park,
Information Technology (IT) Park, Industrial Township, Growth
Centre, Food -Processing Park or any other similar project
approved by the competent authority of the Government or
the Central Government, as the case may be;
(c) "Certificate of In Principle Approval "means an approval
referred to in section 10 of this Act;
1[(ca) “CRO Report” means duly approved report for the proposed
project from the concerned Circle Revenue Officer as notified by
the Department of Revenue and Rehabilitation;]
(d) “Competent Authority” means any department or agency of the
Government or a local authority, statutory body, State owned
corporation or board, Urban Development Authorities or any
other authority or agency constituted or 2[established by any law]
or under administrative control of the Government which is
entrusted with the powers or responsibilities to grant or issue
approvals for the establishment or operation of an enterprise in
the State;
(e) “Declaration of Intent” means submission of relevant and accurate
information, by 3[an enterprise under any law] for the purpose of
availing of the benefit under this Act;
(f) “Deemed Approval” means an approval deemed to have been
given on the expiry of a per iod specified under sub -section(3)of
section 10 of this Act;
(g) 'District Bureau of Enterprise' means the Bureau established under
section 3 of this Act;
1 Inserted by Punjab Act No. 14 of 2025, Section 3(ii)
2 Substituted for words “established by any Punjab law” by Punjab Act No. 14 of 2025, Section 3(iii)
3 Substituted for words “an enterprise under any Punjab law” by Punjab Act No. 14 of 2025, Section 3 (iv)
1[(ga) "Eligible Enterprise" means a new Enterprise or Existing
Enterprise undertaking expansion provided the Enterprise going
for expansion does not have any violations under the relevant
Act;but Eligible Enterprise shall not include Real Estate Projects,
Multiplex, Miniplex, Shopping Mall and Common Effluent
Treatment Plant (CETP) Installations;]
2[(h) “Enterprise” means a micro, small or medium enterprise, as
defined in clause (e) of section2 of the Micro, Small and Medium
Enterprises Development Act, 2006;or large enterprise with Fixed
Capital Investment (land, building and plant and machinery) up to
the limit as may be notified by the Government;]
3[(ha) “Existing Enterprise" means an Enterprise that has commence d
commercial production or operations at the time of submit ting the
Declaration of Intent;]
(i) “Government” means the “Government of the State of Punjab;
4[(ia) “law” means any law enacted or adopted by the Legislature
of the State of Punjab, or enacted by the Parliament of India and
the Rules made or Notifications issued thereunder;]
(j) “Nodal Agency” means the Nodal Agency referred to in section 5
of this Act;
(k) "prescribed" means prescribed by rules made under this Act;
5[(l) “Real Estate Projects” means any commercial complexes or
colony or project where permission under the Punjab Apartment
and Property Regulation Act, 1995 is required and/or projects
exempted under section 44 of the Punjab Apartment and Property
Regulation Act, 1995;]
1Substituted by Punjab Act No. 14 of 2025, Section 3 (v)
2Substituted by Punjab Act No. 14 of 2025, Section 3 (vi)
3Inserted by Punjab Act No. 1 of 2022, Section 2
4Inserted by Punjab Act No. 14 of 2025, Section 3(vii)
5Substitutedby Punjab Act No. 14 of 2025, Section 3(viii)
(m) “Scrutiny Committee” means the committee referred to in section
9 of this Act; and
(n) "State" means the State of Punjab.
3. (1) In order to strengthen and support the 1[Eligible Enterprises] at
the district level, the Government shall establish District Bureau of Ent erprise
in all districts of the State consisting of the following, namely: -
(i) the Deputy Commissioner Chief Executive Officer
of the district concerned;
(ii) the General Manager, District Additional Chief
Industries Centre Executive Officer
(iii) 2[the other members of the District Bureau of Enterprise] as may
be notified by the Government from time to time.
(2) The respective District Industries Centre shall be the Secretariat
for the District Bureau of Enterprise.
4. Subject to the superintendence, direction and control of the Government,
the District Bureau of Enterprise shall have the following powers and perform
the following functions, namely. -
(i) to facilitate the process of filing the Declaration of Intent and
issuance of Certificate of In Principle Approval;
(ii) to redress grievances of the 3[Eligible Enterprises];
(iii) to create awareness and capacity building of all stakeholders
including the officials of the Government; and
(iv) any other function so assigned by the Government for facilitation
and promotion of 4[Eligible Enterprises] in the State.
5. (1) There shall be a State Nodal Agency at the State level which shall
be headed by the Director, Industries and Commerce consisting of such other
1 Substituted for words “Micro, Small and Medium Enterprises” by Punjab Act No. 14 of 2025, Section 4
2Substituted for the words "the other members of the Enterprise" by Punjab Act No. 1 of 2022Section 3
3Substituted for words “Micro, Small and Medium Enterprises” by Punjab Act No. 14 of 2025, Section 5 (i)
4Substituted for words “Micro, Small and Medium Enterprises” by Punjab Act No. 14 of 2025, Section 5 (ii)
Powers and
functions of
District Bureau
of Enterprise.
Nodal
Agency.
Establishment
of District
Bureau of
Enterprise.
members as may be notified by the Government from time to time. It shall
work under the overall superintendence, direction and control of the
Government.
(2) The District Bureau of Enterprise shall be the District Nodal
Agency which shall work under the overall superintendence, direction and
control of the Government through the State Nodal agency.
6. (1) The State Nodal Agency shall have the following powers and
perform the following functions, namely: -
(a) to monitor, supervise and review the overall functioning of the
District Nodal Agency;
(b) to coordinate and liaise with the concerned departments at the
State and Central level; and
(c) to review and take a decision on the appeal filed under clause (a)
of section 12 against the orders of District Nodal Agency and
ensure time bound redressal of grievances.
(2) The District Nodal Agency shall have the following powers and
perform the following functions, namely: -
(a) to assist and facilitate 1[Eligible Enterprises] in the State;
(b) to maintain a record of ‘Declaration of Intent’ as may be
received and to issue a Certif icate of In Principle Approval,
under this Act;
(c) to review and decide the a pplication filed under clause (b) of
section 12 and ensure time bound redressal of grievances; and
(d) to coordinate with the other departments of the Government at the
district level.
(3) The Government may assign such other powers and functions to the nodal
agencies as it may deem fit for giving effect to the provisions of this Act.
1Substituted for words “Micro, Small and Medium Enterprises” by Punjab Act No. 14 of 2025, Section 6
Powers and
functions of
District Nodal
Agencies.
1[7.The Eligible Enterprise willing to avail the Certificate of In Principle
Approval, shall furnish to the District Nodal Agency a Declaration of Intent in
the format and in the manner as may be prescribed.]
8. (1) A Certificate of In Principle Approval shall act as an approval, as
defined in clause ( a) of section 2 for the regulatory services under the Acts
specified in section 18, for a period of three years and six months from the date
of its issuance.
(2) During the validity of Ce rtificate of In Principle Approval, no
competent authority shall undertake any inspection for the purpose of, or in
connection with, any approval as defined in clause ( a) of section 2, except on
the basis of complaints as specified in sub-section (6) of this section.
(3) A Certificate of In Principle Approval may be issued under
section 10 to 2 [Eligible Enterprise ] on rec eipt of a Declaration of Intent
complete in all respects in the prescribed format.
(4) The provision of a Certificate of I n Principle Approval shall be
optional and an enterprise may choose to avail the regular approvals from the
concerned departments at any point of time.
3[(5) A Certificate of In Principle Approval shall not entitle a person to
use a piece of land in deviation to the land use or any stipulations specified in
the regional plan, notified master plan or Local Planning Area notified under
the provisions of the Punjab Regional and Town Planning and Development
Act, 1995.The applicant shall also adhere to the sitting guidelines for setting
up industries issued by various departments.]
(6) (a) In the case of complaints of serious nature, only the
Head of the concerned authority alone may order inspection
after recording reasons in writing for such an inspection.
1 Substituted by Punjab Act No. 1 of 2022, Section 4
2Substituted for the words "a new Micro, Small and Medium Enterprises being set up in the State " by Punjab
Act No.1 of 2022, Section 5
3 Substituted by Punjab Act No. 14 of 2025, Section 7 (i)
Filing of
Declaration
of Intent.
Effect of the
Effect of the
Certificate of
In Principle
Approval.
1 [(b) The Inspecting Officer or the team of inspecting officers
not below the rank of Joint Director shall be nominated by
the Head of the concerned authority.]
(c) The inspection report shall be made available online to the
enterprise and the concerned department within 2 [forty-
eight working hours] after the inspection.
(7) During the course of validity of the Certificate of In Principle
Approval, the enterprise shall at any time but not later than three years from
the date of issue of the Certificate, apply to 3[obtain] all applicable regular
approvals from the concerned departments through 4[the State single window
system of Punjab].
9. To examine and decide upon the applications received under sub-section
(2) of section 10 , there shall be a Scrutiny Committee for each district in the
State which shall consist of the Deputy Commissioner concerned and such
other members as may be prescribed . The Scrutiny C ommittee before making
its decision may jointly or severely make a site visit, if so required , with prior
notice to the applicant.
10. 5[(1) For Eligible Enterprise being set up or operational in Approved
Industrial Park(s) or Real Estate Project(s), the District Nodal Agency, upon
receipt of Declaration of Intent, shall forthwith, issue a Certificate of In -
Principle Approval within five working days to new and existing enterprise.
(2) For Eligible Enterprise being set up or operational outside the Approved
Industrial Park(s) or Real Estate Project(s) and on areas, approved under the
relevant regional plan or master plan or notified l ocal planning areas, the
decision to issue a Certificate of In Principle Approval shall be taken by the
1 Substituted by Punjab Act No. 1 of 2022, Section 5
2Substituted for the words "forty-eight hours" by Punjab Act No. 1 of 2022, Section 5
3Substituted for the words "btain" by Punjab Act No. 1 of 2022, Section 5
4 Substituted for words “the single window system of the Punjab Bureau of Investment Promotion (PBIP)” by
Punjab Act No. 14 of 2025, Section 7 (ii)
5 Substituted by Punjab Act No. 14 of 2025, Section 8
Scrutiny
Committee.
Issuance of
Certificate of
In Principle
Approval
District Nodal Agency within a period of fifteen working days for new
Enterprise and within eighteen working days for Existing Enterprise in
accordance with the procedure, as may be prescribed.]
(3) In case the decision to issue the Certificate of In Principle
Approval is not taken within the stipulated period specified in sub-sections (1)
and (2), the same shall be deemed to have been issued by the District Nodal
Agency.
1[(4) The District Nodal Agency may appoint an officer of the department
concerned to inspect the Enterprise undertaking expansion before issuing a
Certificate of in Principal Approval. The inspection report shall be made
available to the District Nodal Agency within forty -eight working hours after
the inspection]
11. (1) In the case of any willful submission of false and fraudulent
information in the 2 [application/Declaration o f Intent or violation ] of any
provisions of the relevant rules, the Certificate of In Principle Approval shall
be revoked by the District Nodal Agency after giving an opportunity of being
heard.
(2) In addition to any action that may be taken for violation under any
law for the time being in force, any unauthorized construction shall either be
demolished by the owner or by the concerned authority at the risk and cost of
the owner.
12. Any eligible ent erprise, which has applied or has been issued a
Certificate of In Principle Approval under this Act, may file-
(a) an appeal within a period of thirty days from the date of rejection
of application or any other cause referred to in clause (b)to the
State Nodal Agency if a Declaration of Intent filed for grant of the
1 Inserted by Punjab Act No. 1 of 2022, Section 6
2 Substituted for words “application or violation” by Punjab Act No. 14 of 2025, Section 9
Revocation of a
Certificate of in
Principle
Approval.
Appeal.
Certificate of In Principle Approval has been rejected by the
competent authority; and
(b) subject to the action taken in pursuance of the provision s of sub-
section (6) of section 8, if an enterprise having a valid Certificate
of In Principle Approval under this Act is being enquired or
inspected or being compelled for submission of documents for its
establishment and/or operation of its business, an application for
redressal of grievances, if any, before the District Nodal Agency.
13. No suit, prosecution or other legal proceedings shall lie against any
officer or other employee of the Government or the Nodal Agency or any other
competent authority, for anything which is in good faith done or intended to be
done under this Act for the facilitation of 1[Eligible Enterprises].
14. (1) The Government may, by notification in the Official Ga zette,
make rules for carrying out the provisions of this Act.
(2) Every rules made by the Government under this Act, shall be laid,
as soon as may be, after it is made, before the House of the State Legislature,
while it is in session, for a total period of ten days, which may be comprised in
one session or in two or more successive sessions, and if, before the expiry of
the session immediately following the session or the successive sessions
aforesaid, the House agrees in making any modification in the r ule, or the
House agrees that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may be,
however, any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
15. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order, not inconsistent with the provisions of this Act ,
remove the same:
1Substituted for words “Micro, Small and Medium Enterprises” by Punjab Act No. 14 of 2025, Section 10
Power to
remove
difficulties.
Power to
make rules.
Protection
of action
taken in
good faith.
Provided that no such order shall be made after the expiry of a period of
two years from the commencement of this Act.
16. When the Government or any authority under it is empowered to exempt
any enterprise from any approval or i nspection or any provisions relating
thereto under any Central Act, the Government or , as the case may be, any
such authority shall, subject to the provisions of such Central Act, exercise
such powers to grant such exemption to an enterprise established in the State
for at least a period of three years and six months from the date of issue of the
Certificate of In Principle Approval.
17. Nothing in this Act shall be construed as exempting any enterprise from
the application of the 1[provisions of any law] for the time being in force, or
any regulatory measures and standards prescribed there -under, except to the
extent expressly provided in this Act.
18. (1) Notwithstanding anything inconsistent therewith contained in any
other Punjab law s, for the time being in force, the provisions of this Act shall
have an overriding effect.
2[(2) The provisions of the following State enactments and the rules
made by the State Government under any enactment shall be deemed to have
been amended, if so required, to conform with the provisions of this Act in so
far as these are necessary to implement the provisions of this Act, namely: -
Serial
no.
Acts/Rules/Department Services
1. The Punjab Municipal Act,1911 and
The Punjab Municipal Corporation
Act,1976
1.Sanction of Building Plans
2.Issuance of Completion
Certificate-cum-Occupation
Certificate for Buildings.
3. Grant of trade license.
1 Substituted for words “provisions of any Punjab law” by Punjab Act No. 14 of 2025, Section 11
2 Substituted by Punjab Act No. 14 of 2025, Section 12 (i)
Exemption.
Savings.
Act to
override
other laws.
2. The Punjab Regional and
Town Planning and
Development Act, 1995 (As
per existing by-laws)
1. Change of land use (CLU)
2. Sanction of Building Plans.
3. Issuance of Completion
Certificate for Buildings.
4. Issuance of Occupation
Certificate for Buildings.
3. The Punjab Fire Prevention
and Fire Safety Act, 2024
Application for Fire No
Objection Certificate
4. The Punjab Factory Rules,
1952
Approval of Factory Building
plan(except for industries
involving hazardous process as
per First Schedule of the
Factories Act,1948)
5. The Punjab Shops and
Commercial Establishment
Act, 1958.
Registration of Shop or
Establishment
6. The Building and Other
Construction Workers (Regulation of
Employment and Conditions of
Service) Act, 1996 (BOCW
Act,1996)
1. Registration of Principle
Employer
2. Registration under BOCW
Act,1996
7. The Factories Act, 1948
1. Stability Certificate
2. Factory License
8. The Water (Prevention and 1. Consent to Establish (Within
Control of Pollution) Act,
1974 and the Air (Prevention
and Control of Pollution) Act,
1981
Approved Industrial Park-
White, Green and Orange
category of industries) (Outside
Approved Industrial Park-
White and Green category of
industries)
2. Consent to operate (White
and Green category of
industries)
9. Department of Forest and
Wildlife Preservation, Punjab
No Objection Certificate
(NOC) for no forest land
10. Punjab Small Industries and
Export Corporation Ltd.
(PSIEC) as per bye-laws
1. Sanction of Building Plans
2. Issuance of Completion
Certificate-cum- Occupation
Certificate for Buildings]
1[(3) The categories of industries not covered under Serial Nos. 8and 9
of sub -section (2), may take separate approval from the Punjab Pollution
Control Board (PPCB) and Government of India(GoI) under the Forest
(Conservation) Act, 1980, respectively, as may be applicable, and the
application under the Act shall be processed for the remaining services under
sub-section (2).
(4) For those enterprises where Environmental Clearance (EC) is
required and the same is yet to be obtained, the Certificate of In-Principle
Approval shall be granted subjec t to the condition that the applicant shall
compulsorily get EC from the competent authority before the start of
construction at the site.
1 Added by Punjab Act No. 14 of 2025, Section 12 (ii)
(5) For those enterprises where forest land is involved and for which
approval under the Forest (Conservation) Act, 1980 from Government of India
(GoI) is needed, the Certificate of In -Principle Approval shall be granted
subject to the condition that the applicant shall compulsorily get forest
clearance approval from the competent authority before the start of
construction at the site.]
19. The statutory application fee, inspection fee or any other fees
1[chargeable under any law], notified from time to time, in respect of actions,
services and approval as referred to in section 18 shall be payable online to all
the relevant authorities at the time of filing of declaration of intent and before
the issue of the "Certificate of In-Principle Approval", by the applicant.
1 Substituted for words “chargeable under any Punjab law” by Punjab Act No. 14 of 2025, Section 13
Fees.