Starting a startup in Delhi requires careful planning, the right business structure and compliance with the registrations applicable to the nature of your business.
The requirements can differ depending on whether you plan to operate a technology startup, service business, manufacturing venture, e-commerce business or another type of startup. Therefore, it is important to identify the applicable registrations and approvals before starting operations.
At Remind Legal LLP, we assist businesses with registrations, documentation and regulatory compliance required for setting up a startup in Delhi.
Planning to start a startup in Delhi? Get professional assistance with the applicable registrations and compliance requirements.
Starting a business without the appropriate and suitable registrations can create problems with taxation, banking, employment and sector-specific regulations. Choosing the right business structure at the beginning can also help establish clear ownership and liability arrangements.
For startups, DPIIT Startup Recognition can be particularly important if the entity meets the applicable eligibility conditions. Current Startup India guidance covers all the eligible Private Limited Companies, LLPs, registered Partnership Firms and Cooperative Societies, subject to the prescribed criteria.
Proper compliance also helps a startup build credibility with customers, investors, banks and business partners.
Step 1: Choose Business Structure
The first step is to select a suitable legal structure for your startup.
Common options include: -
A Private Limited Company is commonly considered where the founders expect external investment, equity funding or future expansion. An LLP may be suitable where the founders prefer a partnership-based structure with limited liability.
Select the appropriate structure based on ownership, liability, funding plans, taxation and long-term business objectives.
Step 2: Complete PAN, TAN & Basic Business Registration
Obtain PAN for the proprietor or business entity, as applicable, for taxation and business-related transactions.
If you want to establish an LLP or company, complete the applicable incorporation process and obtain the relevant incorporation documents.
TAN, Where Applicable
TAN is not required merely because you operate a startup. It becomes applicable where the business is required to deduct or collect tax at source (TDS/TCS) under the applicable tax provisions.
Step 3: Shops & Establishment Compliance
Delhi has a Shops and Establishments Act that regulates employment and working conditions. However, the Delhi Labour Department states that the requirement for registration under the Delhi Shops and Establishments Act has been kept in abeyance since 1989. Therefore, it should not be presented as a mandatory registration certificate for every startup in Delhi.
Startups should nevertheless consider the applicable employment, working-condition and establishment-related requirements based on their workforce and business operations.
Step 4: Open a Current Bank Account
Open a current bank account in the name of the business.
The account can be used for: -
The bank may require the incorporation/registration documents, PAN and other KYC documents depending on the business structure.
Step 5: GST Registration, Where Applicable
Obtain GST registration where required under applicable GST provisions.
Whether GST registration is required depends on factors such as turnover, the nature of supplies and applicable compulsory-registration provisions.
Startups operating through e-commerce, interstate supplies or other specified activities should review GST applicability carefully instead of relying only on the general turnover threshold.
Step 6: Udyam Registration – Recommended for Eligible MSMEs
Eligible startups can consider Udyam Registration if the business qualifies as a Micro, Small or Medium Enterprise.
Udyam Registration is not mandatory simply because a business is a startup. However, it can be useful for eligible MSMEs seeking applicable government benefits and schemes.
The official Udyam portal states that registration is free, paperless and based on self-declaration, with a permanent registration number and online certificate.
The MSME classification should be checked based on the applicable investment and turnover criteria at the time of registration.
Step 7: Obtain DPIIT Startup Recognition, Where Eligible
DPIIT Startup Recognition is one of the most important startup-specific recognitions under the Startup India initiative.
It is not automatic for every newly incorporated business. The entity must satisfy the applicable eligibility conditions.
Current Startup India guidance provides that, for normal startup recognition, the entity should generally be incorporated as a Private Limited Company, registered Partnership Firm, LLP or Cooperative Society; should not have exceeded the prescribed age or turnover limits; and should work towards innovation/improvement or have a scalable business model with the potential for employment or wealth creation. The current limits shown by Startup India are up to 10 years and ₹200 crore turnover, with separate higher limits for DeepTech startups.
The application is made through the designated Startup India/NSWS process. The application requires the incorporation or registration certificate and information explaining the startup's innovation, improvement or scalability.
DPIIT recognition can also help eligible startups access applicable Startup India benefits, subject to the conditions of each benefit.
Step 8: Trade/Health Trade Licence, FSSAI & Sector-Specific Approvals, Where Applicable
Not every startup requires the same trade licence or sector-specific approval.
Depending on the business activity, the additional approvals may include: -
MCD currently provides a Health Trade Licensing system for the businesses covered under its public-health licensing framework. Therefore, it should be treated as activity-specific rather than a universal startup registration.
Step 9: Labour Compliance, Where Applicable
Once a startup hires employees, it may need to comply with applicable employment and labour requirements.
Depending on the nature and size of the workforce, this may include: -
The exact and accurate requirements depend on the startup's workforce and activities.
Step 10: EPF & ESI, Where Applicable
EPF and ESI are not startup-specific registrations. They become applicable when the establishment and employees fall within the relevant statutory coverage.
The startup should assess its employee strength, establishment type and applicable thresholds to determine that whether EPF or ESI registration and ongoing compliance are required.
These should therefore be treated as where-applicable requirements, rather than mandatory registrations for every startup.
Step 11: Trademark Registration – Optional but Advisable
Trademark Registration is optional but advisable, particularly where the startup is building a distinct brand, product name or logo.
Registering the relevant trademark can help to protect the startup's brand identity and reduce the risk of others using a similar mark for the related goods or services.
It is often better to evaluate trademark protection at an early stage, especially before investing significantly in marketing and brand development.
Step 12: Obtain IEC, Where Import/Export Activities Are Involved
If the startup plans to import goods into India or export goods outside India, it may need an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT), subject to the applicable exemptions.
IEC is therefore not required simply because the business is a startup. It becomes relevant when the business undertakes activities for which an IEC is required.
The exact approvals depend on the sector in which the startup operates.
For example, a food startup may need FSSAI compliance, while a healthcare startup may face medical or drug-related requirements. A manufacturing startup may have environmental and factory-related compliance, while certain financial activities may be subject to specific regulatory requirements.
Therefore, the applicable licences should be identified after considering the startup's actual products, services and business activities, rather than applying the same checklist to every startup.
Documents Required
The documents depend on the business structure and registrations being obtained. Common documents may include: -
Basic Documents
For DPIIT Startup Recognition, the application may require the incorporation/registration certificate and information supporting the startup's innovation, improvement or scalability. The official Startup India portal also provides for supporting materials such as website links, videos, pitch decks or IPR information where relevant.
Other Documents
Depending on the registration, additional documents may include: -
Starting a properly structured and compliant startup can help you: -
DPIIT-recognised startups may be able to access various Startup India benefits, subject to the eligibility conditions applicable to each benefit.
Estimated Timeline
The timeline depends on the business structure, registrations, premises and sector-specific approvals.
A startup operating a straightforward service business may have a relatively simple setup, while businesses operating in regulated sectors may require additional approvals.
DPIIT's Startup India information states that, where an existing entity successfully submits the recognition application, the certificate of recognition is typically issued within two working days, although the actual process can depend on the application and supporting information.
Government Fees
There is no single fixed cost for starting a startup in Delhi.
The overall cost depends on: -
DPIIT Startup Recognition itself is not charged by the Ministry of Commerce and Industry. The Startup India portal states that no fee is charged for the DPIIT Certificate of Recognition.
Udyam Registration is also officially provided as a free registration through the government portal.
Therefore, the total startup setup cost should be estimated based on the actual business model rather than using one standard figure.
Starting a startup involves choosing the right business structure, completing the required registrations and understanding which additional compliances apply to your specific business model.
Remind Legal LLP can assist entrepreneurs with the legal and regulatory requirements involved in setting up a startup in Delhi.
Our Services Include: -
Planning to start a startup in Delhi? Get professional assistance with the applicable registrations and compliance requirements.