In a significant urban reform aimed at boosting ease of doing business, several municipal corporations across India have introduced a fast-track mechanism for issuing trade licenses to sole proprietors. This initiative, encouraged by the Ministry of Housing and Urban Affairs, is part of a larger campaign to promote self-employment and micro-enterprise formalization in rapidly growing city economies. By reducing bureaucratic delays and simplifying documentation, the reform is expected to benefit thousands of individual entrepreneurs operating in sectors such as retail, food services, repair shops, and local trades.

Under the new system, eligible sole proprietors can receive a provisional trade license within 48 to 72 hours of submitting their application through the designated municipal or state portals. The process requires minimal paperwork—typically Aadhaar, PAN, business address proof, and a self-declaration of the nature of business. In most cities, applicants can also apply online, make digital payments for license fees, and download their approval certificate directly from the portal. For specific low-risk categories of businesses, physical inspections may be waived or scheduled post-approval to avoid unnecessary startup delays.

Officials have highlighted that this reform is part of India’s smart governance goals, intended to formalize and support the large number of sole-owned businesses that often operate informally due to licensing hurdles. Urban local bodies have been asked to set up dedicated helpdesks and provide multilingual support to assist new applicants. State governments have also been urged to harmonize their trade license regulations to make the process consistent and predictable across different cities. Entrepreneurs and business associations have welcomed the fast-track model, citing it as a long-overdue step toward inclusive urban enterprise development and regulatory modernization.