The Government of Kerala, on March 11, 2026, issued a notification introducing the Kerala Municipality (Issue of Licence to Enterprises) Rules, 2026. These rules are framed under the powers granted by sections 447, 447A, 448, 449, 450, 451 and 492 of the Kerala Municipality Act, 1994. The new rules replace the earlier licensing framework issued in 2011 for industries, factories, trades, entrepreneurial activities and other services operating within municipal areas.
The rules define key terms such as enterprise, factory, service, capital investment, and pollution, and classify enterprises broadly into two categories: (i) manufacturing or industrial establishments engaged in production processes, and (ii) establishments engaged in trade, commercial activities, or service delivery. Enterprises must submit a licence application to the municipal secretary at least 30 days before commencing operations, along with prescribed fees and supporting documents such as proof of ownership or lease of premises, pollution control clearances where applicable, and declarations regarding other statutory approvals.
The notification also mandates that the municipal secretary must examine the application and grant the licence within five days after verifying the suitability of the building or land for the proposed enterprise. Certain small-scale enterprises may operate in residential buildings subject to specified limits on space usage and compliance with building rules. Existing enterprises licensed under the earlier 2011 rules will continue until the expiry of their current licence period, after which the new rules will apply.
[Notification No. S.R.O. 364/2026]
