A bill has been approved in the state of Gujarat that permits commercial establishments such as shops, malls, restaurants, hotels, cafes, garages, and showrooms to operate 24 hours a day.
The state has made significant changes to the legislation concerning 'Gumasta Dhara' (Shops and Establishments Act).
After the introduction of these amendments on the last day of the Vidhan Sabha's autumn session, the police or local officials can no longer close such establishments solely based on time restrictions. Nevertheless, compliance with rules related to sanitation, traffic, and safety remains mandatory.
Previously, operating hour restrictions for shops and other businesses varied by area: in municipal zones and on state highways, operation was prohibited from 2 AM to 6 AM, and in other areas, from 11 PM to 6 AM. These timeframes are being abolished by the new amendment, which allows shops to operate around the clock. However, this does not mean that employees can work continuously; provisions regarding employee labor rights, including working hours, holidays, and safety, remain in effect.
The State Minister for Industry, Dr. Jairam Gamit, stated that the 'Gujarat Ease of Doing Business Act, 2026' was adopted to make regulatory processes related to industry and business in the state simpler, faster, transparent, and favorable to the industry.
The main objective of this law is to reduce unnecessary regulatory burden for both enterprises and citizens, simplify procedures, encourage self-declaration and self-certification, and strengthen the administrative system based on risk assessment and technology. This law demonstrates a move towards trust-based governance by reducing the need for prior approval and physical contact for low-risk activities.
The primary goal of this bill is the transition from control-oriented governance to 'trust-based and risk-based governance'. Thanks to this legislation, legal formalities have been simplified by consolidating 12 amendments into five different state laws into a single sphere, which saved session time. These reforms will strengthen investor confidence against the backdrop of the concept of 'Developed Gujarat to Developed India by 2047', the Gujarat Industrial Policy 2026, and the upcoming XI Vibrant Gujarat Global Summit in 2027.
Gujarat Fire Prevention and Life Safety Measures Act, 2013: Fire safety standards are now based on risk and operational effectiveness. Compliance with requirements will be adapted to local conditions and building type, which will reduce compliance costs.
Gujarat Shops and Establishments Act, 2019: The registration process will become simpler due to the possibility of self-declaration and self-certification. In addition to ensuring 24x7 operation, workers' rights and safety will be preserved.
Gujarat MSME Act, 2019: The 'Right to do Business' structure for micro, small, and medium enterprises will be strengthened. Eight additional state laws, such as cooperative, energy, GIDC, and irrigation, will be brought into alignment with the assistance system.
Gujarat Medical Council Act, 1967: It will be easier for doctors registered in other states to obtain registration in Gujarat based on self-declaration, which will accelerate medical care and professional mobility.
Gujarat Citizen's Right to Public Services Act, 2013: A technological system of 'automatic appeal' and 'automatic escalation' will be introduced so that a case is automatically transferred to a higher authority if a public service or complaint is not resolved within the stipulated time.
Dr. Gamit emphasized that these legal improvements will be an important milestone on the path to transforming Gujarat into the best investment center for the entire country and the world, eliminating unnecessary procedural complexity without compromising public safety, worker rights, and public health. In line with the Prime Minister's mantra of 'Reform, Execute, and Transform', the state government continues to move towards simplifying, accelerating, and industrializing Gujarat. This law will play a key role in creating a more favorable environment for investment, industry, and employment in the state, promoting Gujarat as a leading state in investment, industrial development, entrepreneurship, and 'ease of doing business.'