7StartUp Team
Short answer: To start a business in India: (1) test your idea, (2) choose a structure (proprietorship, partnership, LLP or private limited company), (3) pick a name and check it is free, (4) register the business, (5) get Udyam (MSME) and GST registration if needed, (6) get local licences, (7) open a current account, (8) set up your brand, website, business email and Google Business Profile, (9) start taking payments with proper invoices, and (10) go after your first customers. A simple proprietorship can be ready in about 2 weeks.
Last updated: 5 November 2026.
Step 1: Test your idea before you spend
Talk to 10–20 people who would actually buy from you. Ask what they use today, what they pay and what annoys them. Then check:
- Who are the competitors? Search Google Maps, Instagram and marketplaces.
- Can you make a profit? Write down your price, your cost per order and your fixed monthly costs.
- How will customers find you? Walk-in, Google, Instagram, WhatsApp, marketplaces or B2B sales.
A small paid test, such as a WhatsApp catalogue or a one-page website with a ₹3,000 ad budget, tells you more than months of planning.
Step 2: Choose the right business structure
| Structure | Best for | Liability | Registration |
|---|---|---|---|
| Sole proprietorship | One owner starting small | Unlimited (personal) | No separate registration; use Udyam, GST and shop licence |
| Partnership firm | 2+ partners, simple setup | Unlimited | Partnership deed; registration with the state Registrar of Firms |
| LLP | Partners who want limited liability | Limited | MCA (FiLLiP form) |
| One Person Company (OPC) | One founder who wants a company | Limited | MCA (SPICe+) |
| Private limited company | Startups planning to raise funds or work with large clients | Limited | MCA (SPICe+), minimum 2 directors |
Simple rule: start as a proprietorship if you are alone and testing the market. Choose an LLP or private limited company if you have partners, need limited liability, or plan to raise investment.
Step 3: Pick a name and check it is free
- Search the MCA name check (for companies and LLPs) and the trademark search on the IP India website.
- Check that the .com or .in domain and the Instagram handle are free.
- Avoid names that are too close to a big brand. It can cost you a rebrand later.
Step 4: Register the business
- Proprietorship: your PAN is the business PAN. You register through Udyam, GST and a shop licence (steps 5 and 6).
- LLP or company: file on the MCA portal. A company registered through SPICe+ gets its PAN and TAN with the incorporation certificate.
- You will need PAN, Aadhaar, photo, address proof of each owner, and proof of the business address (rent agreement or electricity bill plus a no-objection letter from the owner).
Step 5: Get Udyam (MSME) and GST registration
- Udyam registration is free on the official Udyam portal and usually done the same day. It helps with bank loans, government schemes and tenders. See our Udyam registration guide.
- GST registration is mandatory once turnover crosses ₹40 lakh for goods or ₹20 lakh for services in most states (lower in some special category states). It is also usually needed for interstate sales and selling on marketplaces. Many businesses register early so they can issue GST invoices to business customers. See our GST registration guide and the GST changes from 1 November 2026.
Step 6: Get local licences
Depending on your business and state:
- Shop and Establishment licence from the state labour department (most shops and offices).
- FSSAI licence or registration for any food business, including home kitchens and cloud kitchens.
- Trade licence from the municipal corporation in many cities.
- Professional tax registration in states that levy it.
- Industry permits, for example a drug licence for pharmacies or transport permits for cab businesses.
Step 7: Open a current account
Keep business money separate from personal money from day one. Banks usually ask for the registration certificate, GST or Udyam certificate, PAN and address proof. Add a UPI QR and a payment gateway if you sell online.
Step 8: Build your brand and get online
Customers check you on Google before they call. Set up:
- Logo and brand kit: logo, colours, visiting card and letterhead.
- Website: even a 5-page site with prices, photos, reviews and WhatsApp builds trust. See how to make a website for your business.
- Business email on your own domain, like you@yourbusiness.com. See how to create a business email.
- Google Business Profile so you appear on Maps and "near me" searches. See how to create a Google Business Profile.
- WhatsApp Business with a catalogue, quick replies and a greeting message.
Step 9: Set up billing, accounts and compliance
- Use billing software that makes GST invoices and tracks stock and payments.
- Hire a CA or accountant for GST returns, TDS and income tax.
- Keep a simple monthly calendar of due dates. Late GST returns attract late fees and interest.
Step 10: Get your first customers
- Tell everyone you know and ask your first customers for Google reviews.
- Post real work on Instagram and Google every week.
- Run a small Google Ads campaign for "near me" and service searches, and a Meta ads campaign for offers.
- Partner with businesses that serve the same customers.
How much does it cost to start a business in India?
| Item | Typical cost |
|---|---|
| Udyam registration | Free on the official portal |
| GST registration | No government fee |
| Company or LLP registration | Government fees and stamp duty vary by state and capital, plus professional fees |
| Shop licence, FSSAI, trade licence | Varies by state, city and business type |
| Logo, domain, website, email and Google listing | From about ₹10,000 for a basic setup |
Our Business Setup & Startup Launch Kit covers Udyam, GST, logo, domain, a 5-page website, business email and Google Business Profile from ₹14,999, with government fees charged at actual.
How long does it take?
| Step | Usual time |
|---|---|
| Udyam | Same day |
| GST | About 7 working days if there are no queries |
| Private limited company or LLP | About 10–15 working days |
| Website, email and Google listing | 7–15 days, done at the same time |
Frequently asked questions
Can I start a business in India without registration?
A sole proprietorship does not need a separate registration, but you will usually need GST (above the turnover limit or for interstate and marketplace sales), a shop licence and a bank account in the business name. Udyam is free and recommended.
Which business structure is best for a startup?
A private limited company if you plan to raise investment or hire many people. An LLP for partners who want limited liability with less compliance. A proprietorship if you are alone and starting small.
Is GST registration compulsory for a new business?
Only above the turnover limit (₹40 lakh for goods and ₹20 lakh for services in most states), or for interstate sales and most online marketplace sales. Many businesses still register voluntarily to issue GST invoices.
How much money do I need to start a business in India?
It depends on the business. Registrations for a proprietorship cost very little, and a basic brand, website and Google setup starts from about ₹10,000. Service businesses can start with under ₹50,000, while shops, factories and fleets need much more.
Can 7StartUp set up my business?
Yes. Our Business Setup & Startup Launch Kit handles registrations with partner CAs and builds your brand, website, email and Google listing at the same time. Contact us for a free call.
