Rajasthan relaxes registration norms for small establishments

In a notable step toward easing compliance for micro-businesses, the Government of Rajasthan issued a notification on 19 August 2025 under the Rajasthan Shops and Commercial Establishments Act, 1958. The order exempts establishments employing up to 10 workers from the obligation of registration under the Act, exercising powers under Section 3(2) of the Act read with Rule 3 of the Rajasthan Shops and Commercial Establishments Rules, 1959. This change represents a clear regulatory relief for small entrepreneurs and family-run businesses, allowing them to operate with reduced paperwork and fewer administrative hurdles.

The exemption translates into immediate savings in terms of compliance costs and time spent on procedural formalities. Small shops, start-ups, and local commercial setups can now channel their resources toward business growth rather than navigating registration requirements. However, this relief does not imply a free pass from other labour obligations. Employers must still adhere to wage laws, maintain prescribed working hours, and uphold safety and employee welfare standards. In other words, the regulatory load may be lighter, but the responsibility toward workers remains intact.

The move reflects Rajasthan’s broader strategy of promoting ease of doing business by tailoring compliance frameworks to the size of establishments. For the smallest employers, it offers breathing space and flexibility to operate more informally while remaining within the legal fold. Larger establishments, by contrast, must continue with the standard registration process, ensuring that compliance scales up with workforce size. For micro-employers, this reform is both a recognition of their role in the state’s economy and an encouragement to grow without being stifled by administrative processes.