To register a business in India, first register the legal entity (company, LLP, partnership or proprietorship), get PAN, open a bank account, then add GST, Udyam MSME registration and any local or sector licences that apply to your activity.
Key takeaways
- The entity registration and the tax or licence registrations are separate steps.
- GST depends on turnover, supply type and customers, not just on the structure.
- Udyam registration is free and unlocks MSME benefits.
- Local licences depend on your city and activity.
01The registrations explained
| Registration | What it does |
|---|---|
| Entity (company, LLP, partnership) | Creates the legal business |
| PAN and TAN | Tax identity for income tax and TDS |
| GST | Charge and claim tax on supplies |
| Udyam | MSME recognition and scheme benefits |
| Shop and establishment | Permission to run commercial premises |
| PF and ESI | Employee social security |
02Recommended order
- Choose the structure and register the entity.
- Get PAN and TAN and open a current account.
- Register for GST if required.
- Register on Udyam if you are an MSME.
- Apply for local licences and employee registrations.
03Choosing between proprietorship and company
A proprietorship needs no incorporation but offers no limited liability. A company costs more to run but protects personal assets and suits growth. Read our comparison on company types.
Even a small proprietor benefits from GST and Udyam when selling to larger businesses, who often prefer registered suppliers.
Frequently asked questions
Is registration mandatory for a small business?
Many registrations depend on size and activity. Some, like GST, become mandatory above limits.
What is Udyam registration?
A free online registration that recognises your business as micro, small or medium.
Can I register a business without an office?
You need an address for registration. Home addresses are usually accepted with proof and NOC.
How long does it take?
Entity registration takes one to three weeks; GST and Udyam are faster once the entity exists.
This guide is general information based on Indian law as understood in October 2026. Rules, fees and due dates change, so confirm current requirements with a qualified Chartered Accountant before you act. It is not professional advice.