Key Regulatory Approvals Needed to Start a Business in India
Starting a business in India involves more than incorporation. Depending on your activity, you may need a series of registrations, licences, and regulatory approvals before you can legally operate. Knowing them upfront helps you plan timelines and avoid penalties. This guide sets out the key regulatory approvals needed to start a business in India.
Approvals Depend on Your Business
The approvals you need depend on your structure, sector, and scale. Some are universal (like incorporation and PAN), while others are sector-specific (like food, drugs, or finance licences). Below are the common ones most businesses encounter.
1. Business Incorporation
The foundation: registering a private limited company, LLP, or other entity with the MCA. See our business incorporation services and the registration process.
2. PAN and TAN
The Permanent Account Number and Tax Deduction Account Number are issued during incorporation and are essential for taxation and TDS.
3. GST Registration
Required once turnover crosses the threshold, or immediately for inter-state supply, e-commerce, and certain other cases. See GST registration.
4. Shops and Establishment Registration
A state-level registration regulating working conditions, applicable to most commercial establishments.
5. Professional Tax and Labour Registrations
Depending on the state and headcount, registrations such as professional tax, EPFO, and ESIC apply once you employ staff.
6. Import Export Code (IEC)
Mandatory for businesses engaged in import or export. See IEC registration.
7. Sector-Specific Licences
- FSSAI licence — for food businesses.
- Drug licence — for pharmaceuticals.
- RBI registration — for NBFCs and financial services.
- SEBI registration — for capital market intermediaries.
- STPI / SEZ approvals — for IT and export units. See STPI and SEZ registration.
8. FDI Reporting (for Foreign-Funded Businesses)
Businesses with foreign investment must complete FC-GPR reporting and other FEMA compliances.
Approvals Checklist
| Approval | When Needed |
|---|---|
| Incorporation | Always |
| PAN/TAN | Always |
| GST | Above threshold / specified cases |
| Shops & Establishment | Most establishments |
| EPFO/ESIC | On employing staff |
| IEC | Import/export |
| Sector licences | By activity |
Frequently Asked Questions
Do all businesses need GST registration?
No — only above the threshold or in specified cases such as inter-state supply and e-commerce.
When do EPFO and ESIC apply?
Once you employ the prescribed number of staff, these registrations become mandatory.
Is IEC mandatory for all businesses?
Only for those importing or exporting goods or services.
How do I know which sector licences apply?
It depends on your activity — food, pharma, finance, and IT/export units each have specific approvals.
Plan Every Approval from Day One
S. Choudhary & Co. maps and obtains the registrations and licences your business needs. Explore our incorporation services or call +91 90248 28295 · sushil@sushilchoudhary.com.
