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Ease of Doing Business
Karnataka has revamped the approval processes and labor reforms to ensure hassle-free investment. It consistently amongst “Top Achiever” and “Best Performer” in introducing and implementing business friendly reforms:

Reduced 1400+ regulatory compliances through digitisation, simplification and decriminalisation to encourage economic growth.

Over 1200+ services made time-bound under SAKALA (Right to Service Act), enhancing efficiency in service delivery to save cost to businesses.

Focus on Government Process re-engineering to reduce service delivery timelines and provide seamless experience to businesses during pre-establishment, pre-operation and operations stages

Introduction of self-certifications/third-party certifications/perpetual licensing/auto-renewals of licenses/approvals related to business life cycle.
Karnataka has revamped the approval processes and labor reforms to ensure hassle-free investment:
Enhanced facilitation process to ensure transparency
Access to information and transparency through well-defined Standard Operating Procedures for regulatory approvals including inspections and associated service times available in public domain across departments.
- Facilitation act amended for improving EODB:
- Facilitation act amended for improving EODB: Affidavit Based Clearance Mechanism (Self-certification scheme) for MSMEs/ Manufacturing Enterprises with a moratorium period of 3-year for 15 approvals.
- Karnataka land reforms act amended for improving ease of land procurement: Entrepreneurs can now directly purchase land from farmers.
- All new and compliance approvals available through “One Stop Shop” under e-Biz Karnataka with time-bound grievance handling mechanisms through centralized portal.
Best in class Land & Labor Reforms
Access to information and transparency through well-defined Standard Operating Procedures for regulatory approvals including inspections and associated service times available in public domain across departments.
- Provision to avail 'Fixed term employment' to optimize labor capacity to cater to seasonality
- Amendments made to facilitate women's work timings in night shifts, between 7 PM to 6 AM
- Overtime limit per quarter increased from 75 to 125 hours with the amendments to the Factories Act
- Exemption limit for Industrial Disputes Act increased from 100 to 300 workers
- Exemption limit for Contract Labor Act (seeking licenses) increased from 20 to 50 workers