Choosing the right structure and licenses

Proprietorship and partnership are simple to start; LLP and Private Limited offer separate legal identity and limited liability. Choose based on risk, funding plans and team structure.

• Proprietorship — simplest, suitable for individual owners
• Partnership / LLP — for two or more partners; LLP adds limited liability
• Private Limited — preferred for fundraising and growth

MSME (Udyam) registration is a simple online certification that brings benefits like priority sector lending, faster payments and government scheme eligibility.

Most state laws require Shops & Establishment registration for commercial premises and offices. It is often a base document for opening bank accounts and other registrations.

Any business involved in manufacture, storage, transport, distribution or sale of food requires FSSAI — Basic, State or Central, based on turnover and scale.

IEC is a one-time registration from DGFT required for businesses importing or exporting goods or services from India.

Depending on activity and team size, you may also need Professional Tax (PT), PF, ESI, trade license, GST registration and industry-specific licenses.

• PF and ESI — once employee count crosses prescribed limits
• Professional Tax — state-level employer registration
• Trade license — local municipal authority