Setting up a new business
Choosing a structure and completing the registrations needed to start operating.
The structure you choose at the start determines who bears the liability, how profits are taxed, what you must file each year, and how easily you can bring in a partner or raise funds later. Changing it afterwards is possible but rarely simple.
We work through that choice with you on the facts of your case — what you will do, who is involved, how you expect to fund it — and then complete the registrations that follow.
The structures available
A proprietorship is the simplest to start and the least costly to maintain, but the proprietor is personally liable for the debts of the business. A partnership firm shares that exposure between partners. An LLP limits liability while keeping compliance lighter than a company. A private limited company offers limited liability and a clearer route to outside investment, at the cost of the heaviest annual compliance.
There is no structure that is right for everyone. The question is which set of trade-offs suits what you are actually planning to do.
Registrations that usually follow
Whichever structure you choose, a PAN and a bank account in the name of the business are the starting point. GST registration follows where you cross the threshold or fall into a category that must register regardless. Udyam registration is available to micro, small and medium enterprises and is often required to access scheme benefits.
Depending on the activity, further licences may apply — a shop and establishment registration, a food licence, or an import-export code among them.
What this covers
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Structure advice on your facts
The trade-offs explained against what you are planning, not in the abstract.
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Name and document preparation
Name availability, deeds, memorandum and articles as the structure requires.
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Registration filing
Incorporation or registration applications prepared and filed, and queries responded to.
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Post-registration setup
PAN, TAN, GST and Udyam registration as applicable.
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First-year compliance calendar
What you must file and when, from the date you start.
How the process works
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Discuss the plan
Activity, people involved, funding and scale expected.
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Choose the structure
The options set out with their consequences for liability, tax and compliance.
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Prepare documents
Name approval, deeds or incorporation documents as applicable.
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File and follow up
Application filed and departmental queries answered.
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Set up for operations
PAN, TAN, GST and other registrations, and the compliance calendar.
Documents required
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PAN and Aadhaar
Of the proprietor, partners or directors.
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Photographs
Recent passport-size photographs.
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Proof of business address
Electricity bill with rent agreement or ownership proof.
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Proof of identity and address
Of each person involved in the business.
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Digital signature
Required for LLP and company registrations.
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Proposed names
Two or three options, in order of preference.
The list above is indicative. Additional documents may be required depending on your case and the current departmental requirements.
Related services
Proprietorship Registration
Setting up a sole proprietorship and the registrations that go with it.
Partnership Firm Registration
Partnership deed drafting and registration of the firm, with the tax registrations that follow.
LLP Registration
Incorporation of a limited liability partnership, including the LLP agreement.
Private Limited Company Registration
Incorporation of a private limited company and the post-incorporation registrations.
MSME / Udyam Registration
Registration as a micro, small or medium enterprise on the Udyam portal.
Frequently asked questions
Should I start as a proprietorship, an LLP or a private limited company?
It depends on who bears the liability, how you expect to fund the business, and how much annual compliance you are willing to carry. A proprietorship is simplest but leaves you personally liable without limit. An LLP limits liability with moderate compliance. A private limited company offers limited liability and the clearest route to outside investment, with the heaviest compliance.
There is no answer that is right for everyone. Tell us what you are planning and we will set out the trade-offs on your facts.
Is it necessary to register a partnership firm?
Registration with the Registrar of Firms is not compulsory in every case, but an unregistered firm cannot enforce a contractual claim through the courts against a third party, and a partner cannot sue the firm or the other partners on the contract.
For a firm that extends credit or contracts with customers and suppliers, that limitation is usually reason enough to register.
What are the benefits of Udyam (MSME) registration?
The most commercially useful is under the legislation on delayed payments: a buyer who does not pay a registered micro or small enterprise within the prescribed period becomes liable for interest, and the dispute can be referred to a facilitation council.
Registration is also a common eligibility condition for priority sector lending, interest subvention schemes, government tender preferences and state-level incentives. It is free and can usually be completed the same day.
Articles on this topic
Planning to start a business?
Tell us what you intend to do and we will set out the structures available and what each involves.