Are you planning to start your own business in India? That’s a great decision! But before you launch, it’s essential to understand the legal framework and get the necessary licenses and registrations. Whether you’re setting up a startup, an MSME, or an online store, being legally compliant protects your brand and ensures smooth operations.
In this blog, we’ll walk you through the most important registrations and licenses required to start a business in India.
1. Choose Your Business Structure
The first step is deciding your business type. Your structure will determine the registration and legal requirements.
Popular types of business structures in India:
Where to register:
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MCA (Ministry of Corporate Affairs) for LLPs, OPCs, and Pvt Ltd
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Local authorities for proprietorships and partnerships
2. GST Registration
If your business has an annual turnover of more than ₹20 lakh (services) or ₹40 lakh (goods), you must register for Goods and Services Tax (GST).
Benefits of GST registration:
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Legal recognition
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Input tax credit
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Easier access to loans
3. MSME (Udyam) Registration
If you’re a small or medium enterprise, registering under Udyam (earlier MSME) gives you access to various benefits like subsidies, bank loans, and government schemes.
Who should apply?
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Startups
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Small-scale manufacturers
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Service providers
4. FSSAI License for Food Businesses
Planning to deal with food production, delivery, or packaging? You’ll need an FSSAI License.
Types of FSSAI licenses:
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Basic License – For turnover up to ₹12 lakh
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State License – ₹12 lakh to ₹20 crore
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Central License – Above ₹20 crore or inter-state operations
5. Import Export Code (IEC)
Want to take your products global? An Import Export Code (IEC) is mandatory to import or export goods from India.
Issued by:
Directorate General of Foreign Trade (DGFT)
6. Shop & Establishment Act License
If your business operates from a physical space like a shop, office, or warehouse, you must get this license from your local municipal authority.
Applicable to:
All commercial establishments, including freelancers and work-from-home setups (in some states)
7. Trade License
This license allows you to carry out a specific trade or business in a particular area.
Issued by:
Municipal Corporation based on your business activity
8. Professional Tax Registration
Applicable in states like Maharashtra, Karnataka, and West Bengal, this tax is imposed on employees and business professionals.
Who needs it?
Employers and business owners with salaried staff
9. EPR Registration (for Plastic & E-Waste)
If your business deals in plastic packaging or electronics, you need EPR authorization from the CPCB.
Mandatory for:
Importers, producers, and brand owners generating plastic or e-waste
10. Industry-Specific Certifications
Depending on your business type, you may also require:
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BIS Certification – For electronic goods and appliances
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CDSCO License – For medical equipment and drugs
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PSARA License – For private security agencies
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APEDA or Spice Board Registration – For export of agricultural/food products
Why You Should Never Ignore Business Compliance
Skipping mandatory licenses can result in:
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Fines and legal trouble
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Loss of trust from clients and partners
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Shutdown orders from authorities
Starting right is the best way to grow strong.
Get Expert Help with PSR Compliance
Need help figuring out which license is right for your business? PSR Compliance offers end-to-end support for:
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Business Registration
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FSSAI, GST, MSME, EPR, CDSCO, BIS & more
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Fast processing & expert guidance
Visit: www.psrcompliance.com
Call: 70658 83416
Final Words
Starting a business in India is easier when you’re fully compliant with the law. The licenses and registrations discussed above will help you launch and run your business with confidence and legal clarity.
Pro Tip: Don’t wait until it’s too late—register early and stay protected.
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