Licences you typically need to start a business in India
Most founders begin with a product idea and a GST search tab. That works until a landlord, marketplace, bank or municipal inspector asks for a document you have never heard of. This guide is the sequence we recommend when someone asks: “What do I need before I open?”
1. Foundations every founder needs
Before any licence form, lock the basics:
- PAN for the proprietor, partners or company.
- Aadhaar linked for e-sign where portals require it.
- Business bank account with cancelled cheque or passbook proof — banks and GST both ask for this.
- Registered address proof — rent agreement + NOC from owner, or utility bill in the applicant’s name.
If you are incorporating a private limited company or LLP, complete MCA registration first. Many later licences ask for Certificate of Incorporation, MOA/AOA and board resolution for the authorised signatory.
2. Do you need GST?
GST is not automatically mandatory on day one for every tiny shop, but it becomes mandatory when turnover crosses the notified threshold, when you make interstate taxable supplies in many cases, or when a platform / B2B buyer insists on GSTIN. Online sellers often register early because marketplaces settle more cleanly with GSTIN.
If you are unsure, read our GST registration checklist and compare your activity on the official GST portal guidance — not on random blogs alone.
3. State Shop & Establishment
Almost every physical shop, office or commercial establishment eventually needs Shop & Establishment registration with the state labour department (name varies by state). Timing and portals differ: some states are fully online; others still mix online applications with inspector visits. Keep employee count, working hours and weekly holiday details ready.
4. Municipal trade licence / health trade licence
City corporations issue trade licences for many shop categories. Food businesses often need an additional health trade licence. Fire NOC appears when built-up area, seating or storage crosses municipal triggers. These are the permissions that surprise founders who only prepared Central registrations.
5. Sector licences (only if your activity needs them)
Food
Restaurants, cloud kitchens, caterers and packaged food units need FSSAI registration or licence. See FSSAI guide.
Import / export
IEC from DGFT is required for import-export of goods. GSTIN and bank AD code usually come into the conversation next.
Factories / manufacturing
Factory licence, pollution consents and labour registrations depend on workers, horsepower and location. Do not treat a trading GSTIN as enough for a workshop.
Professional practices
Clinics, pharmacies, coaching centres and transport fleets each have sector overlays. Use LicenseHub category pages to map the stack, then confirm on the official portal.
6. A 30-day starter sequence we use with early teams
- Week 1 — PAN, bank account, address file, decide sole prop vs company.
- Week 2 — GST decision + apply if needed; Udyam if you want MSME benefits.
- Week 3 — Shop & Establishment + municipal trade licence draft.
- Week 4 — Sector licence (FSSAI / IEC / etc.) and calendar renewals.
7. Common mistakes
- Using a friend’s GSTIN “temporarily” on marketplaces.
- Signing a lease without checking whether the premises can get trade / fire permissions.
- Ignoring state labour registration because “we are only two people”.
- Copying document lists from another state — formats differ.
Next steps
Browse specific licences on LicenseHub catalog, read the Central vs State vs Local explainer, or contact us if a page needs a correction after a portal change.