Ranchi, August 24: Former Rajya Sabha member Mahesh Poddar has urged the Jharkhand government to abolish the traditional, paper-based municipal trade licence system for businesses already registered under the Central Government’s MSME framework.
In a letter addressed to Chief Minister Hemant Soren, Poddar said the recent changes under the Micro, Small and Medium Enterprises Development (MSMED) framework have significantly simplified the registration and compliance process for businesses. He said the reforms have made MSME registration digital, free and voluntary, and called for similar reforms at the state and municipal levels.
Poddar said the continued requirement for businesses to obtain traditional trade licences from urban local bodies runs contrary to the Centre’s efforts to promote digital governance and ease of doing business.
He pointed out that businesses in Jharkhand, including those operating under municipal jurisdictions such as Ranchi, continue to face paper-based and inspector-driven licensing procedures. According to him, such a system increases the compliance burden on traders and small entrepreneurs and is inconsistent with the Centre’s digital-first approach.”Businesses that are already registered through the Central Government’s Udyam portal should not be required to obtain a separate municipal trade licence,” Poddar said in his letter, urging the state government to review the existing system.
He also called for replacing inspector-driven procedures with a paperless, digital and self-declaration-based compliance mechanism wherever possible. He said this would reduce unnecessary paperwork and physical inspections while making it easier for entrepreneurs to operate their businesses.
Poddar argued that eliminating redundant licensing requirements would send a positive message to the business community, encourage local entrepreneurship and help Jharkhand align its policies with the changing MSME ecosystem.
He requested the state government to consider two key measures — ending the mandatory trade licence requirement for businesses already registered under the Central Government’s MSME system and adopting a fully digital, self-declaration-based compliance framework for necessary local regulations.
The proposal, however, is a request to the state government and does not by itself abolish the existing trade licence requirements. Any change in the current system would require an appropriate decision or notification by the competent authorities in Jharkhand.
Poddar expressed hope that the state government would consider the proposal in the interest of economic development and improving the ease of doing business for traders and entrepreneurs in the state.
