Once you have chosen a structure, the next step is getting the right registrations. The exact list depends on your business type, location and size, but most small businesses in India deal with some combination of the items below.
The basics for almost every business
- PAN: a proprietor uses their personal PAN; partnerships, LLPs and companies need their own PAN.
- Business bank account: keeps business money separate and builds a financial track record (more in Part 5).
- Udyam registration: free MSME registration that unlocks many benefits (Part 3).
Tax registrations
- GST registration: required once turnover crosses the threshold, or in certain cases regardless of turnover (Part 4).
- TAN: needed if your business must deduct tax at source (TDS), for example on rent, contractor or professional payments above set limits.
- Professional tax: levied in several states, including Tamil Nadu, Karnataka and Maharashtra, on businesses and employees.
Local and state licences
- Shop and Establishment registration: required in most states for shops, offices and commercial premises, usually within a set period of opening. Apply through your state's labour department portal.
- Trade licence: issued by the municipal corporation or local body for certain trades, to ensure safety and zoning rules are followed.
- Fire safety and pollution consents: may apply to restaurants, factories and larger premises.
Industry-specific licences
| If you... | You may need |
|---|---|
| Make, sell, store or serve food (including home bakers and cloud kitchens) | FSSAI registration or licence, based on turnover and scale |
| Import or export goods or services | Import Export Code (IEC) from the DGFT |
| Sell medicines | Drug licence from the state drug control authority |
| Run a manufacturing unit | Factory licence and pollution control board consent, depending on size and activity |
| Want to protect your brand name or logo | Trademark registration |
When you hire employees
- EPF registration: generally mandatory once you have 20 or more employees.
- ESI registration: generally mandatory for establishments with 10 or more employees in covered areas.
- Labour law compliance: minimum wages, appointment letters and leave records.
Tips to make it easier
- Use official government portals, which are increasingly online and Aadhaar-linked.
- Many states run single-window systems for business approvals.
- Keep digital copies of every certificate in one folder.
- Note renewal dates; some licences, such as FSSAI and trade licences, must be renewed.
- Beware of agents charging high fees for registrations that are free or simple to do yourself.
In Part 3, we look closely at Udyam registration, one of the most useful free registrations for small businesses.
Start a Small Business in India: the full series
- Part 1: Choosing Your Business Structure
- Part 2: Registrations and Licences Checklist (you are here)
- Part 3: Udyam (MSME) Registration
- Part 4: GST Registration and Composition Scheme
- Part 5: Bank Account and Digital Payments
- Part 6: How to Price Your Products and Services
- Part 7: Invoicing and Bookkeeping
- Part 8: Getting Your First Customers
- Part 9: Funding and Government Loan Schemes
- Part 10: Taxes and Compliance Calendar
Disclaimer: This article is for general information only and is not legal, tax or financial advice. Rules, limits and fees change from time to time, so please check official government portals and consult a chartered accountant or company secretary for your specific situation.
