The Government of Rajasthan (GoR) has been undertaking several initiatives to enhance investment and employment opportunities in the state. To this end, it has created an online Single Window Clearance Portal (SWCP)1 as a one-stop and timebound clearance system to facilitate smooth running of business and ease of obtaining clearances. GoR has also enacted the Micro, Small, and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019, which exempts MSMEs from any approvals or licensing requirements for three years from the beginning of their operations. Its approach towards reducing compliance burden can be summarised as: temporary exemption, digitisation, and fixing timelines. Such measures are necessary but not sufficient to rationalise compliance burden and enhance ease of doing business. To contain excessive unemployment and ensure resilient recovery from covid-19 pandemic for the state, attracting private investment and creating an enabling business environment will be crucial. Reportedly, unnecessary and avoidable compliances in the state are one of the key reasons for a large proportion of investment commitments not materialising. Typically, only around 15 percent of investment commitments materialise on ground. Even a recent report by ORF-TeamLeaseRegTech points out that compliances issued by GoR to businesses carry 810 imprisonment clauses,2 which has the potential to disincentivise industry. Thus, a complete overhaul of compliance philosophy in the state is necessary. A systemic framework is required, based on which, proposed and applicable compliances can be reviewed on a regular basis, for identification, amendment, and removal of unnecessary compliances. The CM Rajasthan Economic Transformation Advisory Council (CMRETAC) tasked Consumer Unity & Trust Society (CUTS) to design such a framework, to enable reduction of compliance burden in the state to a significant extent. Upon review of frameworks adopted by different countries to enhance ease of doing business and reduce compliance burden, CUTS zeroed on the globally recognised Regulatory Guillotine (RG) framework to design a framework for Rajasthan. The RG framework rapidly reviews compliances through a consultative mechanism, reverses the burden of proof, and requires clearances to pass the tests of legality, necessity, and proportionality, to be retained. Based on such framework, a three-step framework was designed for reducing compliance burden in Rajasthan.