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Starting a business and expanding existing units will become easier for Micro, Small and Medium Enterprises (MSMEs) in Haryana. The state government has notified the Right to Business Act, 2026. The objective is to make the approval process time-bound for MSMEs in the manufacturing sector and reduce procedural hurdles involved in starting a business.
Under the Act, an eligible enterprise will have to submit a declaration of intent to the District Nodal Agency for in-principle approval. The agency will have to take a decision within 15 days. If approval is not granted, the matter will be forwarded to the Deputy Chief Executive Officer of the Haryana Enterprises Promotion Centre, who will have to take a decision within 10 days.
New and Expanding Units to Benefit
The law will cover MSMEs setting up new manufacturing units as well as those undertaking expansion of existing units. According to the government, under the existing system, businesses have to obtain multiple approvals, licences and registrations from different departments before commencing operations. The sequential process followed by different agencies often increases the time taken and adds to the administrative burden on small enterprises.
The Right to Business Act seeks to make this process more structured and time-bound. The state’s industrial policies have also previously provided for necessary approvals for MSMEs within 15 days and a provision for automatic deemed clearance.
Relief from Routine Inspections for Three Years
The Act provides a 36-month, or three-year, moratorium for eligible enterprises. During this period, routine inspections will not be conducted and coercive action will not be taken against the enterprise. However, an inspection may be carried out if a complaint is received.
In case of an inspection based on a complaint, the head of the concerned competent authority will have to record the reasons in writing. The inspection will also have to be conducted by an officer of the rank of Joint Director or above. This links inspections during the moratorium period to specified conditions and procedures.
Obtaining Necessary Approvals Still Mandatory
The three-year moratorium does not exempt an enterprise from obtaining other statutory approvals. An eligible unit will have to initiate the process of obtaining the necessary approvals from the concerned departments. For this, applications will mandatorily have to be submitted through the Invest Haryana Single Window Portal of the Haryana Enterprises Promotion Centre.
The District Nodal Agency will also have to maintain records related to the declaration of intent, in-principle approval and deemed approval. This will help maintain a record of the application status and approval process.
Administrative Burden on MSMEs to Come Down
According to the state government, the requirement to obtain approvals from multiple departments under the existing regulatory framework puts additional pressure on small businesses in terms of time and resources. MSMEs generally have limited financial and administrative resources compared with larger enterprises, making delays in the approval process more challenging for them.
Haryana has already been working towards simplifying the single-window system and regulatory processes. According to the state’s MSME Directorate, the government aims to create a favourable business environment for MSMEs and small businesses and speed up the resolution of their issues.
Faster Process for Starting a Business
Through the new law, the government has created a legal framework to make initial approvals for MSMEs time-bound and reduce unnecessary regulatory burden. In-principle approval within 15 days, the provision for deemed approval and a three-year moratorium are among the key provisions for new manufacturing units and enterprises undertaking expansion.
However, inspections may still be carried out as per the prescribed procedure in cases involving safety concerns, unauthorised construction, misuse of land or other serious complaints. In this way, the law seeks to make it easier to do business while retaining necessary regulatory oversight.
