LawLine logo
LAW LINE

Legal · Tax · Compliance

Free tool · No sign-up

Business Ideas in India with the Licences Each Needs

Practical business ideas for India with the exact registrations and licences each one needs, so you can budget for compliance before you start.

Import–export trading

Suits: Traders, manufacturers

  • Importer Exporter Code (IEC) from DGFT
  • GST registration
  • Product-specific licences (FSSAI import, BIS, drug import)

Small manufacturing unit

Suits: Food processing, packaging, garments

Pick the legal structure first

A sole proprietorship is quickest but gives no liability protection. An LLP limits liability with light compliance. A private limited company suits founders who plan to raise equity. An OPC lets a single founder have a company.

Registrations almost every business needs

A current bank account and PAN; GST once aggregate turnover crosses ₹40 lakh for goods or ₹20 lakh for services (₹20 lakh / ₹10 lakh in special-category States), or immediately for inter-State supply of services above threshold and most e-commerce sales of goods; a State shop and establishment registration; professional tax where levied; and Udyam registration to access MSME benefits such as the 45-day payment rule.

Employment law as you hire

EPF becomes mandatory at 20 employees and ESI at 10 in notified areas. Keep written appointment letters and salary slips from the first hire.

Frequently asked questions

Which business needs the least licensing?

Online services such as consulting or design usually need only PAN, bank account, shop registration (if you have premises) and GST above threshold.

Is Udyam registration compulsory?

No, but it is free and unlocks MSME benefits and delayed-payment protection.

Do home kitchens need FSSAI?

Yes. Every food business operator needs at least basic FSSAI registration.

Related on LawLine

Official sources

General information, not tax or legal advice. Figures follow the law as we read it on the date of review; confirm with the official source or a Chartered Accountant before filing.