Kerala’s regulatory framework significantly impacts businesses, often imposing criminal penalties for minor infractions. This report highlights the urgent need for decriminalisation in business laws to promote entrepreneurship and economic growth.

Key Insights

• Ease of Doing Business: Kerala ranks 15th in India’s 2022 Ease of Doing Business Index, indicating challenges in its business environment.
• Regulatory Landscape: The study identified 113 state laws affecting businesses, many of which impose imprisonment for minor infractions.
• Focus on Reform: 34 Acts were shortlisted for decriminalisation, targeting minor procedural and technical lapses that do not threaten life, property, or involve fraud.

Research Approach

• Data Collection: A mix of primary and secondary research was used to compile and analyse business-related laws in Kerala.
• Stakeholder Engagement: Insights from business owners, legal experts, and other stakeholders enriched the findings.
• Legal Review: Each Act was rigorously examined to assess its impact and penal provisions.

Recommendations

• Regular Reviews: Enhance communication with stakeholders and establish periodic regulatory reviews.
• Remove Imprisonment: Eliminate imprisonment provisions for minor infractions to improve compliance.
• Amend and Reform Laws: Modernise outdated laws and align them with current socio-economic realities.
• Consolidate and Simplify: Merge related laws to reduce complexity and ensure clarity.
• Proportional Penalties: Introduce gradual penalties that scale with the severity of violations.