Punjab Right To Business Act

GOVERNMENT 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Year No. Short Title Whether repealed or otherwise 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 period 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 commenced 

commercial production or operations at the time of submitting 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 Enterprise 

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 Certificate of In Principle Approval, 

under this Act; 

(c) to review and decide the application 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 Certificate 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 receipt of a Declaration of Intent 

complete in all respects in the prescribed format. 

(4) The provision of a Certificate of In 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 Committee 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 local 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 of 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 enterprise, 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 provisions 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 Gazette, 

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 rule, 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 inspection 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 laws, 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 subject 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.