June 29: The government has introduced a new ‘Improvement Notice’ mechanism aimed at strengthening the ease of doing business framework and making regulatory compliance more transparent, efficient, and supportive for enterprises.
Under the new system, businesses will be given an opportunity to correct minor compliance issues within a specified timeframe before any punitive action is initiated. The move is designed to encourage voluntary compliance and reduce unnecessary regulatory burden on companies, especially micro, small, and medium enterprises.
Officials said the initiative reflects a shift towards a more facilitative governance approach, where the focus is on guiding businesses toward compliance rather than imposing immediate penalties. The mechanism is expected to improve trust between regulators and industry stakeholders while ensuring adherence to rules and standards.
The ‘Improvement Notice’ framework will also help streamline inspection processes by clearly distinguishing between procedural lapses and serious violations. This is expected to reduce ambiguity in enforcement and create a more predictable regulatory environment for investors and entrepreneurs.
Industry experts have welcomed the step, noting that it could significantly improve operational ease, reduce compliance stress, and encourage formalisation of businesses. They added that such reforms are crucial for boosting investment confidence and supporting long-term economic growth.
The government said the initiative aligns with its broader goal of improving the business ecosystem through simplified regulations, digital governance, and faster resolution mechanisms, ultimately contributing to a more competitive and investment-friendly economy.
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