Guwahati: The Assam government has introduced a suite of legislative reforms in the Legislative Assembly, including The Assam Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Bill, 2026, and The Assam Jan Vishwas (Amendment of Provisions) Bill, 2026, aimed at significantly simplifying regulatory procedures and boosting investment across various sectors of the state. These bills are central to the state’s broader strategy to enhance the ease of doing business and foster a more conducive environment for entrepreneurs and industries.
The proposed legislations seek to streamline approvals, reduce compliance burdens, and decriminalise minor offences, directly impacting sectors from education and urban planning to fire safety and land administration. The move is expected to provide a significant impetus to startups, micro, small, and medium enterprises (MSMEs), and first-generation entrepreneurs by cutting down bureaucratic hurdles and promoting a trust-based governance model.
What was announced
Industries, Commerce and Public Enterprises Minister Bimal Borah tabled The Assam Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Bill, 2026, in the Assam Legislative Assembly on Thursday, July 9, 2026. This bill aims to replace the existing 2020 Act governing the MSME sector.
Concurrently, The Assam Jan Vishwas (Amendment of Provisions) Bill, 2026, was also introduced, proposing amendments to six state acts administered by different departments. These acts include the Assam Non-Government Educational Institutions (Regulation and Management) Act, 2006; Assam Private Universities Act, 2007; Assam Town and Country Planning Act, 1959; Assam Fire and Emergency Services Act, 2025; Assam Regulation of Reclassification and Reclassification-cum-Transfer of Lands Act, 2015; and Assam Cinema (Regulation) Act, 1953.
Labour Welfare Minister Rameswar Teli also introduced The Assam Shops and Establishment (Amendment) Bill, 2026, which seeks to reduce compliance burdens on commercial establishments. Additionally, the government tabled The Assam Ease of Doing Business (Amendment) Bill, 2026, proposing the creation of a Single Window Task Force for industrial area proposals.
Why it matters
The package of bills is designed to significantly reduce the regulatory burden on businesses, particularly MSMEs, which are considered the backbone of employment generation and economic growth in Assam. Chief Minister Himanta Biswa Sarma announced on Wednesday, July 8, 2026, that small, non-polluting enterprises would no longer require government approvals to commence operations for their first three years.
This exemption is expected to reduce the time and cost involved in setting up eligible enterprises, encouraging greater private sector participation in manufacturing, services, and other low-risk economic activities. Chief Minister Sarma emphasised the government’s intention to allow entrepreneurs to focus on value creation rather than bureaucratic procedures.
The Jan Vishwas (Amendment of Provisions) Bill, 2026, specifically aims to decriminalise minor offences and replace imprisonment with monetary penalties, thereby fostering a trust-based governance model. This shift is expected to simplify compliance, protect smaller enterprises from disproportionate legal consequences, and reduce the burden on courts.
For the education sector, the bill reduces minimum land requirements for non-government schools to two bighas in rural areas and one bigha in municipal/town areas for Lower Primary and Middle English schools. For High Schools, Higher Secondary Schools, and Composite Schools, the requirement is revised to three bighas in rural areas and one bigha in urban areas. Private universities will see their minimum land requirement reduced to 10 acres (30 bighas) outside municipal limits and 7.27 acres (22 bighas) within municipal limits.
Background
Assam has been actively pursuing reforms to improve its business environment, with Chief Minister Himanta Biswa Sarma consistently highlighting the state’s efforts to become a preferred investment destination. In June 2026, Chief Minister Sarma noted that entrepreneurs could register and start businesses through the Ease of Doing Business (EoDB) portal in just seven steps, underscoring the state’s commitment to streamlining regulatory approvals and digitising government services.
The state’s initiatives align with the central government’s broader “Jan Vishwas (Amendment of Provisions) Act, 2023,” which amended 42 central laws to decriminalise minor offences and reduce compliance burdens. The central government’s Business Reforms Action Plan (BRAP) has been a key driver for states to improve their Ease of Doing Business rankings.
Assam’s MSME sector is significant, with over 400,000 units employing approximately 1.5 million people, and contributing 34.54 percent to the state’s Gross State Domestic Product (GSDP) in 2019-20. The state government’s “Industrial and Investment Policy of Assam” and schemes like the “Mukhya Mantri Atmanirbhar Asom Abhijan 2.0” have been instrumental in promoting investment and supporting entrepreneurs.
The state cabinet had approved these seven bills on Sunday, July 5, 2026, ahead of the budget session which commenced on July 6, 2026. The budget session is scheduled to run from July 6 to July 31, 2026, with the state budget for 2026-27 presented on July 10.
Key details
The Assam Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Bill, 2026, proposes to repeal and replace the 2020 Act. It introduces a stronger, time-bound, and deemed-approval-based facilitation framework. For non-polluting MSME units, the bill allows commencement of operations without prior government approval for the initial three years.
The Assam Ease of Doing Business (Amendment) Bill, 2026, mandates the creation of a Single Window Task Force. This task force will coordinate and expedite proposals specifically related to notified industrial areas. Industries, Commerce and Public Enterprises Minister Bimal Borah said the bill also provides for a dedicated module on the existing centralised web portal for industrial area proposals.
The Assam Jan Vishwas (Amendment of Provisions) Bill, 2026, seeks to amend six state laws to reduce avoidable compliance requirements and facilitate faster approvals. This includes changes to land requirements for educational institutions and private universities, aligning fire safety regulations with national standards, and simplifying the process for establishing cinema halls by delegating licensing powers to District Magistrates.
The Assam Shops and Establishment (Amendment) Bill, 2026, aims to modernise the regulatory framework by incorporating provisions for digital governance, self-certification, deemed registration, and promotion of 24×7 economic activities, while retaining safeguards for employee welfare.
Reactions
“We are making it easier to do business in Assam. Small, non-polluting enterprises can now commence operations without government approvals for the first three years. I want my entrepreneurs to focus on creating value, not chasing approvals,” Chief Minister Himanta Biswa Sarma said in a statement.
Industry stakeholders are expected to welcome these decisions, as regulatory approvals have often been cited as a major challenge for new businesses during their initial years of operation. The government believes that easing entry barriers for small businesses will foster innovation, strengthen local entrepreneurship, and expand the state’s industrial base.
What’s next
The introduced bills will now undergo legislative debate and deliberation within the Assam Legislative Assembly. Following their passage in the assembly, they will proceed for gubernatorial assent to become law. The state government is expected to issue detailed operational guidelines outlining the categories of enterprises eligible for exemptions and the compliance framework applicable after the initial three-year period.
The implementation of these reforms is anticipated to further enhance Assam’s position in national Ease of Doing Business rankings and attract more investments, contributing to the state’s economic growth and employment generation.