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New shops rules aim to cut compliance burden

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The Government of India has notified the Andaman and Nicobar Islands Shops and Establishments (Amendment) Regulations, 2025, marking a significant regulatory shift aimed at fostering a more business-friendly environment while strengthening workforce protections across the Union Territory. The amended regulations came into effect on November 21, 2025, and are aligned with the broader Ease of Doing Business initiative.

The changes focus on reducing compliance requirements for businesses, particularly micro and small enterprises, while introducing provisions intended to promote transparency and employee welfare. One of the key amendments is the simplification of the registration requirement. Under the revised framework, only shops and establishments employing 20 or more persons are required to register, a move expected to significantly lower the administrative burden on smaller enterprises operating with limited staff strength.

In another departure from earlier procedures, the renewal process for registration certificates has been removed. Once issued, the registration certificate will now remain valid for the entire duration of an establishment’s operation. Updates will only be required in cases where structural or operational changes take place, eliminating the need for periodic renewals and associated paperwork.

The amendments also introduce provisions aimed at enhancing workforce inclusivity. Women employees are now permitted to work during night shifts between 7 pm and 6 am, subject to explicit consent. Employers are required to ensure adequate safety, security, transportation and a conducive workplace environment for women working during these hours. This provision is expected to expand employment opportunities while placing responsibility on establishments to maintain compliance with safety norms.

Officials indicate that the combined effect of these measures is expected to benefit MSMEs, contractors, service providers and other business establishments operating in the islands. By reducing procedural hurdles and enabling greater flexibility in workforce deployment, the amendments are projected to encourage entrepreneurship and support job creation across sectors such as retail, services and hospitality.

At the same time, the regulatory changes emphasise employee welfare by setting clearer expectations around workplace safety and inclusivity. By explicitly addressing conditions for night shifts involving women employees, the amendments seek to balance economic activity with labour protection.

Detailed notifications and regulatory information related to the amendments have been made available on the official web portal of the Labour Department, enabling public access and scrutiny. The administration has positioned the reforms as a step toward modernising labour regulations in the islands while keeping pace with national policy priorities.

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