Shops, malls, restaurants, hotels, cafes, garages and showrooms across Gujarat will now be allowed to remain open round the clock after the state Assembly passed the Gujarat Ease of Doing Business Bill, 2026 by a majority.

The legislation removes restrictions on the operating hours of commercial establishments under the Gujarat Shops and Establishments Act, commonly known as the ‘Gumasta Dhara’. However, businesses will continue to be required to comply with rules concerning safety, cleanliness and traffic management, while existing safeguards governing employees’ working conditions will remain in force.

Commercial Establishments Can Operate Round The Clock

The amendment was introduced on the final day of the Gujarat Assembly’s monsoon session and removes restrictions that previously required commercial establishments to close during specified hours.

Under the new provision, police and local authorities will not be permitted to shut down a commercial establishment solely on the grounds that it is operating beyond prescribed hours.

Until now, operating restrictions applied to shops and other commercial establishments in several parts of the state, although certain locations and services were exempt. These included areas under municipal corporations, hospitals, national highways, railway stations, petrol pumps and bus stations.

In municipal corporation and state highway areas, shops were generally required to remain closed between 2 am and 6 am. In other areas, commercial establishments had to shut between 11 pm and 6 am.

The amended law removes these restrictions, allowing eligible shops and commercial establishments to operate 24 hours a day, seven days a week.

Workers’ Rights And Safety Rules To Continue

The provision for round-the-clock business operations does not allow employers to require workers to remain on duty continuously.

Existing provisions relating to working hours, rest periods, leave, employment conditions and employee safety will continue to apply despite the removal of restrictions on the operating hours of establishments.

The state government has said the reforms seek to provide businesses with greater operational flexibility without compromising workers’ rights, public safety or other regulatory requirements.

Bill Aims To Simplify Regulatory Processes

Minister of State for Industry Dr Jairam Gamit said the Gujarat Ease of Doing Business Bill, 2026 was intended to make regulatory procedures simpler, faster, more transparent and more industry-friendly.

According to Gamit, the legislation seeks to reduce unnecessary regulatory burdens on businesses and citizens while simplifying procedures and encouraging self-declaration and self-certification.

The bill also aims to expand risk-based and technology-driven governance and reduce the need for mandatory pre-clearances and physical interaction in low-risk activities.

The changes form part of a broader shift towards a trust-based regulatory system, under which businesses and individuals would face fewer procedural requirements where the perceived regulatory risk is low.

The legislation combines 12 amending provisions relating to five different state laws under a single framework, a move aimed at simplifying the legislative process and reducing the time required for separate amendments.

Changes Across Fire Safety, MSMEs And Medical Registration

Under amendments to the Gujarat Fire Prevention and Life Safety Measures Act, 2013, fire safety standards will move towards a risk-based and performance-oriented approach.

Regulations will be adapted according to local conditions and the nature of different buildings, with the stated objective of reducing compliance costs while maintaining safety standards.

Amendments to the Gujarat Shops and Establishments Act, 2019, will also simplify registration through self-declaration and self-certification. The law will simultaneously retain protections for workers’ rights and safety while allowing round-the-clock operations.

The Gujarat MSME Facilitation Act, 2019, will see the strengthening of the ‘Right to Business’ framework for micro, small and medium enterprises. Eight additional state laws, including those concerning cooperatives, electricity, the Gujarat Industrial Development Corporation and irrigation, have also been aligned with the facilitation framework.

Changes to the Gujarat Medical Council Act, 1967, will make it easier for doctors registered in other states to obtain registration in Gujarat through self-declaration. The government said the measure was intended to facilitate professional mobility and medical services.

The Gujarat Right of Citizens to Public Services Act, 2013, will also be amended to introduce technology-based ‘auto-appeal’ and ‘auto-escalation’ mechanisms.

Under this system, matters involving government services or complaints that are not resolved within the stipulated time will automatically be escalated to a higher authority.

Reforms Linked To Gujarat’s Industrial Policy

Gamit said the legislation would play an important role in implementing the Gujarat Industrial Policy 2026 and advancing the state’s ‘Developed Gujarat to Developed India @2047’ vision.

He linked the reforms to the Vibrant Gujarat Regional Summits recently held across all four regions of the state and the upcoming 11th Vibrant Gujarat Global Summit-2027.

The global summit is scheduled to be held in January under the theme ‘Developed Gujarat: Shaping Global Future’.

The minister said the new legislation was intended to remove unnecessary procedural complexities while ensuring that public safety, public health and workers’ rights were not compromised.

He said the government’s approach reflected the Prime Minister’s ‘Reform, Perform and Transform’ mantra and would help create a more favourable environment for investment, industrial development and employment.

Gamit said Gujarat was continuing to strengthen its position in investment, industrial development, entrepreneurship and ease of doing business, adding that the passage of the bill would contribute to improving both ease of doing business and ease of living in the state.

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