Reforms by Local Government Khyber Pakhtunkhwa for registration of Small Trades and Businesses
Reform ID K049
Reform Description Local Government KP Allowed Free of Cost registration of Small Trades & Businesses

Before: All 120 trades including small ones had to obtain Trade License and and pay pay License fee and annual inspection fees.

After: All trades have been exempted from Trade License Fee & Inspections under Khyber Pakhtunkhwa Local Government Act, 2013.
Sector All TMAs of Khyber Pakhtunkhwa
Beneficiaries Small Trades and Businesses
Jurisdiction/Location All Tehsil Municipal Authorities (TMAs) in Khyber Pakhtunkhwa
Department Local Government, Elections & Rural Development Department, Government of Khyber Pakhtunkhwa
Date of Implementation 30-04-2020 (Small Trades and Businesses which are charged by TMAs themselves), and

01-07-2020 (Contractors to avoid litigation)
Details Difficulty ● Small Trades and Businesses in TMAs Khyber Pakhtunkhwa had to undergo a difficult process to obtain/renew licenses. Inspector Mafia and Lack of automated licensing regime were amongst the major impediments in the Ease of Doing Business (EoBD) and a source of discomfort/exploitation for the small and medium businessmen.
Analysis ● In order to obtain/renew a license, small trades and businesses had to follow a laborious process which was undesirable.
Solution ● It was agreed that the fee charged for the registration should be abolished to facilitate the registration. Consequently, after assessment of financial position, the Government of KP has abolished fees for obtaining/registration /renewal of license.

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