Ease of Doing Business

Ease of Doing Business (EoDB), an index published by the World Bank is a benchmark study of the regulations across different Countries of the World. It is an aggregate figure that includes different parameters which define the Ease of Doing Business in a country.

The index is a means of measuring business regulations and its implementation across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. It provides indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

According to the World Bank’s latest ‘Doing Business’ index, India stands at 77 out of 190 countries in the Ease of Doing Business 2018 ranking. In this regard, Government of India (GoI) had in 2015 –’16 decided to formulate strategies and steps towards creating an enabling framework for stimulating investments and growth across the primary, secondary and tertiary sectors.

Department of Industrial Policy and Promotion (DIPP), GoI had laid emphasis on simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient, effective, simple and user-friendly. Govt. of India (GoI) has been ranking States based on the Ease of Doing Business and also in getting timely clearances. The States are ranked based on the parameters that include ease in setting up a business, registration of property, labour compliances, infrastructure availability, finance and tax issues, inspection reforms and ease in exiting business. Kerala is at 21st position in the EoDB ranking of States done by DIPP, GoI during the year 2017-18.

Government of Kerala (GoK) had decided to undertake reforms to help place the State on an equal footing amongst other top ranked States and identified specific areas for improvement in various aspects of doing business in the State. The key areas identified were i) Registration, ii) Revenue iii) Municipality Building Rules iv) Panchayat Building Rules v) Survey and Land Records, where speedy reformations required for making a more conducive atmosphere for starting business. It was also decided to adopt the best practices of other States to improve the ease of doing business environment in the State.

KSIDC, being the nodal agency of the Government of Kerala, had done a study on the modification / amendments to be made in the concerned Rules and Regulations related to the existing clearance procedures in the State.

Based on the recommendations of the study report by the agency, amendments to following seven Acts were prepared by KSIDC and vetted by the concerned departments. The same was approved by the Cabinet and an Ordinance issued on 20.10.2017. Amendments to the following Rules based thereon had also been prepared by KSIDC and put up to Government; the same have been cleared by the concerned departments and are being issued shortly.

Amendments to Acts
  • The Kerala Panchayat Raj Act, 1994
  • The Kerala Municipality Act, 1994
  • The Kerala Lifts and Escalators Act, 2013
  • The Kerala Groundwater (Control and Regulation) Act, 2002
  • The Kerala Head Load Workers Act, 1978
  • The Kerala Shops and Commercial Establishment Act, 1960
  • The Kerala State Single Window Clearance Boards and Industrial Township Area Development Act, 1999

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Amendments to Rules

A. Department of Local Self Government

  • The Kerala Panchayat Raj (Issue of Licence to Dangerous and Offensive Trades and factories) Rules, 1996 Click to Download
  • The Kerala Panchayat Raj (Profession Tax) Rules, 1996 Click to Download
  • The Kerala Municipality (Registration of Private Hospitals and Private Paramedical Institutions) Rules, 1997Click to Download
  • The Kerala Panchayat Raj Building Rules, 2011 Click to Download
  • The Kerala Municipality Building Rules, 1999 Click to Download

B. Department of Labour

  • The Kerala Factories Rules, 1957 Click to Download
  • The Kerala Inter-State Migrant Workers (Regulation of Employment and Condition of Service) Rules, 1983 Click to Download
  • The Kerala Contract Labour(Regulation and Abolition) Rules, 1974 Click to Download
  • The Building and Construction Workers(Regulation of Employment and Condition of Service(Kerala)) Rules, 1998 Click to Download
  • The Kerala Motor Workers Rules, 1962 Click to Download
Government Orders, Circulars and Notifications

A. Department of Local Self Government.

1. Reduction in supporting document requirement - Only two documents required for obtaining Trade Licence.

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2. Third Party Certification for the issue of approvals.

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3. Timelines for the issue of construction permit.

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4. Joint site inspections by Departments/Agencies for the issue of building permit.

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5. Submission of inspection reports within 48 hours of completion of inspection for the issue of building permit.

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B. Department of Labour

1. Grading of shops, establishment and factories based on operational excellence.

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2. Formation of committees for grading of shops, establishment and factories based on operational excellence.

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3. Online system for availing services.

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C. Kerala State Pollution Control Board.

1. Auto renewal of consent to establish and consent to operate.

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2. Increased validity of consent to operate.

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3. Notification of white category of industries.

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4. Self-Certification for green category industries and delegation of power.

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5. Third Party certification and frequency of inspection.

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6. One time registration for white category industries.

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7. Implementation of online inspection framework.

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8. Post monitoring on continuous operation and maintenance of pollution control facilities in industries and establishments.

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9. Consent to Operate from Pollution Control Board - Self Certification for Green Category industries.

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D. Kerala State Electricity Board.

1. Only two documents required for obtaining electricity connection – proof of identity and proof of legal occupancy.

2. Simplification of application procedure for availing new electricity connection.

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3. Online application for availing new electricity connection.

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4. Timelines mandated for providing new electricity connection.

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E. Department of Taxes

1. Constitution of Authority for Advance Tax Ruling.

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2. Constitution of Appellate Authority for Advance Tax Ruling.

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F. Department of Legal Metrology.

1. Introduction of online inspection regime.

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G. General Government Orders.

1. Constitution of Investment Promotion Facilitation Cell at State and District Level.

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2. Central Inspection System - Constitution of Central Inspection System and Procedures.

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100 plus Kerala Advantage
Levies imposed by State and Local Bodies

1. Stamp Duty and Registration fees (Registration Department)

Existing Rates of Stamp Duty And Registration Fees Click to Download

2. Rate Schedules (Commercial Tax Department)

The Rates and Tariffs other than GST levied by the StateClick to Download

The Goods and Service Tax Rates and TariffsClick to Download

3. Tariff on Electricity (Kerala State Electricity Board)

Schedule of Tariffs for Retail Supply of Electricity by KSEB LtdClick to Download

4. Tax schedule and Fees (Motor Vehicle Department)

The Rates and Tariffs of tax levied on every motor vehicle used or kept for use in the StateClick to Download

Fees levied for Licenses, Permits and Other servicesClick to Download

5. List of Licenses and Fees (Kerala Excise Department)

The list of fees levied by the Department for Licensing areClick to Download

6. The tax rates and tariffs (Directorate of Urban Affairs, Local Self Government Department)

Permit Fees Schedule and Rates (under The Kerala Municipality Building Rules, 1999) Click to Download

Profession Tax Schedule and Rates (under The Kerala Municipality (Profession Tax) Rules, 2005)Click to Download

Service Tax Schedule and RatesClick to Download

7. The tax rates and tariffs (Directorate of Panchayat, Local Self Government Department)

The Tax Rates and Tariffs Click to Download