"How to start a business in India" is asked by two million people a month, and most answers are either motivational or a list of government schemes. This is the operational version: the twelve things to actually do, in order, with what they cost in 2026.
1. Validate before you register (₹0, 2 weeks)
Talk to 20 potential customers; try to pre-sell. A WhatsApp catalogue and a UPI QR are enough to take your first orders as an individual. Registrations come after you know someone will pay.
2. Choose a structure (₹0–₹15,000)
Proprietorship for most solo starts; LLP for partners in a services firm; Private Limited if you'll raise money or sell to large companies. Full comparison with tax rates: proprietorship vs LLP vs Pvt Ltd.
3. PAN and TAN (₹0–₹100, 1 week)
A proprietor uses their own PAN. Firms/companies get a PAN at incorporation. TAN (for deducting TDS) is needed once you pay contractors/professionals above thresholds or salaries with TDS — apply on the NSDL/Protean portal.
4. Udyam registration (₹0, 10 minutes)
Free, permanent, unlocks collateral-free loans, the 45-day payment protection and tender benefits. Do it on day one: Udyam guide.
5. Shop & Establishment registration (₹0–₹5,000, 1 week)
Required by your state within 30 days of starting; banks ask for it. State-wise guide.
6. Current account (₹0–₹10,000 minimum balance, 3 days)
Bring PAN, Udyam, Shop Act/GST, address proof. Get a merchant UPI QR from the bank or a PSP at the same time — print it with the UPI standee tool. Keep business and personal money separate from the first rupee; it makes tax filing and loans ten times easier.
7. GST — only when required (₹0, 3–7 days)
Mandatory above ₹40 lakh (goods) / ₹20 lakh (services), for inter-state goods sales, and for marketplace selling. Voluntary earlier if your customers are businesses. Step-by-step registration.
8. Trade-specific licences (₹100–₹10,000)
| Trade | Licence |
|---|---|
| Food (restaurant, packaged, home kitchen) | FSSAI registration/licence — guide |
| Pharmacy, medical devices | State drug licence |
| Import/export | IEC from DGFT (₹500, instant) |
| Salon, gym, clinic | Municipal trade licence; health licence |
| Manufacturing | Factory licence (if 10+ workers with power), pollution consent |
| Selling on Amazon/Flipkart | GST + brand approvals; GS1 barcodes for products |
9. Trademark (₹4,500–₹9,000 per class, 12–18 months)
File early — a trademark search costs nothing and prevents the horror of rebranding after two years. Trademark process and cost.
10. Pricing and cash flow (₹0)
Work out cost, margin and break-even before you print a rate card — the profit margin calculator includes packaging and gateway fees. Rule of thumb: keep 3 months of fixed costs in the bank. If you borrow, compare the real cost with the EMI calculator; Mudra and CGTMSE loans are collateral-free for Udyam-registered units (loan schemes).
11. Invoicing, receipts and letterhead (₹0)
Set up your invoice format with a UPI QR, a letterhead for quotations and letters, and a numbering series from day one. Store PDFs in a cloud folder by month — six years of retention is required for GST.
12. Compliance calendar
- Monthly/quarterly GST returns if registered (calendar)
- TDS by the 7th, quarterly returns
- Advance tax: 15 June/Sep/Dec/Mar (or 15 March for presumptive)
- ITR by 31 July
- PF/ESI by the 15th if you have employees; wage slips by the 7th
- Shop Act renewals, FSSAI renewals, trademark renewal every 10 years
Realistic budget for a first year
| Item | Proprietor (service) | Small shop |
|---|---|---|
| Registrations (Udyam, Shop Act, GST, licences) | ₹0–₹3,000 | ₹2,000–₹15,000 |
| Trademark | ₹4,500–₹9,000 | ₹4,500–₹9,000 |
| CA/compliance help | ₹5,000–₹15,000 | ₹12,000–₹30,000 |
| Tools & software | ₹0 (this site) – ₹6,000 | ₹0–₹10,000 |
| Working capital | 3 months' expenses | Stock + 3 months' expenses |
FAQ
Can I start a business without any registration?
Yes — as a proprietor under your own PAN, below the GST threshold, with no employees. Register for Udyam anyway; it's free and useful.
How much money do I need to register a company?
Around ₹8,000–₹15,000 all-in for a Private Limited via SPICe+, including DSC, DIN and stamp duty in most states.
Do I need a CA from day one?
Not necessarily. A CA is worth it once you register for GST, hire staff, or cross ₹20 lakh in turnover.
Which comes first, GST or Shop Act?
Shop Act (or another business proof) usually comes first because the bank needs it; GST when you cross the threshold or need it for marketplaces.