Retail
How to start a retail shop in India
The premises drives everything: the licence, the civic permissions and the address on every registration.
Updated 20 Jul 20266 min read
A retail shop is the most location dependent business to set up. Almost every registration is tied to the premises, so signing the lease is the event that starts the clock.
Structure first, but keep it simple
Most single location shops start as proprietorships. It is the cheapest structure to run, the tax is your personal slab rate, and there is no separate annual return. Move to an LLP or a company when you open a second location, take on a partner, or start carrying real inventory risk.
The registrations, in order
| Registration | Why you need it |
|---|---|
| Udyam | Free, and the document most banks accept as proof of the business |
| Shop and establishment | State law for the premises and anyone you employ |
| GST | Once you cross the goods threshold, or immediately if you sell online |
| Trade licence | Required by most civic bodies for a commercial premises |
| FSSAI | Only if you sell food, including packaged food |
Every one of these carries the shop address. Register them after the lease is signed, not before, or you will be filing amendments in month two.
The bank account
Banks generally want two registrations in the business name before opening a current account. For a proprietor that is usually Udyam plus either GST or the shop and establishment certificate. Take both to the branch on the first visit and the account opens the same week.
If the shop carries its own name on the signboard, register it as a trademark. A signboard is the cheapest possible way to advertise a name you do not own.