UP implements self-certification and third-party audit system to boost ease of doing biz

Lucknow, Nov 13 (PTI) The Uttar Pradesh government has introduced a self-certification and third-party audit system across the state under its Ease of Doing Business policy to strengthen the industrial environment and help achieve the target of making the state's economy worth USD 1 trillion, a senior official said on Thursday.

Principal Secretary, Labour and Employment, MK Shanmuga Sundaram said in a statement that a government order dated November 12, 2025, has been issued to implement the system throughout the state.

Under the new arrangement, low-risk (non-hazardous) factories and establishments adopting the self-certification system will be subject to only one random joint inspection in a period of five years. Once inspected, such units will remain exempt from further inspections for the next five years, he said.

Low-risk (non-hazardous) establishments not opting for self-certification, as well as medium-risk (hazardous) units, will undergo inspection once every three years by a government-recognised third party if the entrepreneur chooses that option, he said.

The principal secretary added that the third-party inspection provision has been introduced to minimise departmental intervention in ensuring compliance with labour laws for low-risk factories under the ease of doing business framework.

Startups and incubators set up under the state's Startup Policy and categorised as non-hazardous will be exempt from inspections under labour laws for a period of 10 years from the date of their listing on the Nivesh Mitra portal or until they cease to qualify as startups, whichever is earlier.

However, inspections may be conducted with the approval of the labour commissioner only in cases of verified written complaints, confirmed labour law violations, or accidents at the factory, he said.

Inspections of high-risk (highly hazardous) factories will continue to be carried out by departmental officials.

Similarly, inspections in cases of complaints or accidents will be permitted only with the approval of a competent authority.

Sundaram said the implementation of the third-party inspection and self-certification system will free low-risk factories, shops, and commercial establishments from routine departmental inspections.

This will help create an investment-friendly environment and contribute significantly to the state government's goal of transforming Uttar Pradesh into a USD 1 trillion economy. PTI ABN TRB