At present, 28 clearances are required to open kirana stores, while a restaurant requires about 17 approvals
The government is planning to lower the number of approvals required to set up kirana stores and eateries, according to a report by The Times of India.
The move comes amid calls for a single-window clearance to ease the process of running smaller businesses. At present, 28 clearances are required to open kirana stores, while a restaurant requires about 17 approvals.
Mandatory approvals for restaurants include no-objection certificates for fire and signage, license to play music and clearance from the food regulator.
The Department for Promotion of Industry and Internal Trade (DPIIT) is considering eliminating licence renewal to cut down red tape involved in operating small businesses.
Moneycontrol could not independently verify the story.
In countries such as Singapore and China, only four clearances are required to open a restaurant.
Industry representatives raised the issue at a recent meeting with Commerce Minister Piyush Goyal.
The DPIIT has started work on reducing the number of approvals required in sectors that generate a large numbers jobs and do not require capital.The National Restaurants Association of India (NRAI) has said the laws are often a hindrance for restaurant owners. "Can we please have a uniform code for restaurants at a national level with a digital way of doing business? Currently, we are just getting photocopies the whole day. Not only every state, but every city with its various municipal bodies have a different set of rules for restaurants," the article quotes Rahul Singh, President of NRAI, as saying.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.