Business registration in India

1. Choose the entity

A company uses the MCA's SPICe+ incorporation process; an LLP uses FiLLiP. A sole proprietorship has no separate incorporation certificate as a company; its activity-specific registrations and records can establish the business. Registration documents, fees and obligations depend on the chosen entity.

2. Understand MSME classification and Udyam

The official Udyam portal states that registration is free, online and based on self-declaration. It is MSME registration, not company incorporation or a substitute for a licence. Its published classification effective from 1 April 2025 uses both investment and turnover ceilings:

The portal applies the current composite criteria and rules for calculating investment and turnover. An enterprise must meet both relevant ceilings; consult the portal for transitions and definitions. District industries centres and official single-window systems can help.

3. Check tax and activity-specific registrations

GST registration depends on location, turnover, supply and other conditions; registration is not required simply because Udyam is obtained. The GST registration guide explains the application. Food businesses must investigate the applicable FSSAI licence or registration through FSSAI. Shops, factories and regulated activities may need state or local permissions.

4. Consider startup recognition

DPIIT recognition is separate from incorporation. It can be relevant to certain startup programmes, but recognition alone does not guarantee a grant or tax exemption.

Source checked: 28 October 2026. Verify current requirements and official fees before applying.