Chandigarh extends exemption for establishments with up to 20 workers under Punjab Shops Act

The Centre has extended to Chandigarh the Punjab Shops and Commercial Establishments (Amendment) Act, with an aim to reduce compliance burdens on small businesses and enhance the ease of doing business in the state, a government order on Friday said.

The amendment allowed establishments employing up to 20 workers, constituting 95 per cent of shops and commercial establishments in Punjab, to be exempted from all provisions of the Act.

The Punjab government had enacted the amendments in August this year to free shopkeepers from the "Inspector Raj", a statement from the state government had said.


The registration work under the law will now be applicable only for shops employing more than 20 persons.

The registration process has also been streamlined, and establishments with 20 or more employees will now receive deemed approval for registration within 24 hours of application submission.

Under the amendment, establishments employing up to 20 workers are only required to provide basic information and are not obligated to register.