The Faculty of Commerce recommended to start a Bachelor Degree in Commerce instead of the diploma offered at that time. The recommendation was further strengthened with the establishment of Northern India Chamber of Commerce in 1923 at Lahore. However, the plan was deferred for three years due to financial constraints. The problem was, however, overcome by the generous offer of Sir Ganga Ram to donate his residential building ”Nabha House” situated opposite to the University Grounds for exclusive use to establish a College of Commerce. The Government of the Punjab, in return, agreed to meet the annual expenditure on staff and establishment. These offers were accepted and approved and the Hailey College of Commerce was established on the 4th of March 1927 after the name of Sir Malcolm Hailey, the then Governor of the Punjab and the Chancellor of the University. Initially a three years B. Com. Degree Course was introduced to impart sound and quality education and training in the field of Commerce.
The University of the Punjab also added a Hall, four classrooms, a second hostel and other offices. But with the gradual increase in the number of students, these premises were considered insufficient to meet the College requirements. The idea to shift the College to the New Campus gained impetus in the course of its Golden Jubilee Celebrations in 1977 and it was shifted to the New Campus on the 23rd of September 1978 and temporarily housed in Hostel No. 15. The present premises were inaugurated on Ist January, 1981. Later, the first floor and a separate Cafeteria were added during the next two years. In 1987, a beautiful Table Tennis Court was built with the donation of M/S Service Industries Limited and the College also constructed Squash Racket Courts. In 1998 a spacious computer lab with a capacity of 70 PC's was established. Another computer lab was set up in 2003 with 70 additional PC's. Presently, the College is spread over a vast area of beautiful lush-green surroundings along the Canal having the privilege of the main mosque in its vicinity. In 2004, an other story was added with the construction of 2nd floor extending the number of classrooms to 23. The construction of another 3 storey new block is being undertaken costing Rs. 40 million, thereby increasing the capacity by another 23 class rooms along with faculty/ administration offices.