Consultancy is the lowest-friction business in India: no sector licence, no trade licence in most cities, and even export of services needs no IEC. The full stack is an entity, GST at the right time, and two or three housekeeping registrations. Here is the clean list – including what you can safely skip.
Updated July 2026. Registrations and fees current as of July 2026 (major recent changes are dated in-line). Rules change by notification – use the official links to confirm before applying.
Registrations and licences you need
| Registration / licence | Applies | Government fee | Authority / portal | Validity |
|---|---|---|---|---|
| GST registration Threshold Rs 20 lakh for services (Rs 10 lakh in Manipur, Mizoram, Nagaland, Tripura). Inter-state SERVICES within the threshold stay exempt from registration. | IF APPLICABLE | Nil | GST portal gst.gov.in | Ongoing (returns apply) |
| Shops and Establishment registration Required in most states within 30 days of starting; our guide covers state-wise fees and portals. | MANDATORY | Varies by state | State labour department Our state-wise S and E guide | State-wise (one-time to 5 years) |
| Professional tax (PTEC / PTRC) Levied in about 21 states – PTEC for the business itself, PTRC once you have employees. | IF APPLICABLE | Up to Rs 2,500 per year | State commercial tax department Our PT calculator + state pages | Annual |
| Udyam (MSME) registration Not legally compulsory but practically essential: cheaper trademark and expedited fees, priority-sector lending, delayed-payment protection under MSMED Act. | MANDATORY | Free | Ministry of MSME udyamregistration.gov.in | Lifetime |
| LUT for service exports (RFD-11) If you invoice foreign clients: exports of services are zero-rated under the LUT. | IF APPLICABLE | Nil | GST portal gst.gov.in | One financial year |
| IEC NOT required for export of services (FTP 2023) – banks credit foreign receipts against purpose codes without it. Take it only if claiming FTP benefits or dealing in restricted services. Note: the old SEIS incentive stands discontinued. | OPTIONAL | Rs 500 | DGFT dgft.gov.in | Lifetime + annual update |
| Professional body registration Only for regulated professions practising as such (CA, CS, CMA, advocate, architect) – generic management/IT/marketing consultancy needs no body registration. | IF APPLICABLE | Body-wise | ICAI / ICSI / Bar Council etc. | Ongoing |
| EPF and ESI EPF at 20+ employees, ESI at 10+ (wages up to Rs 21,000). Labour Codes in force since 21-Nov-2025; state rules rolling out. | IF APPLICABLE | Free registration | EPFO / ESIC (Shram Suvidha) shramsuvidha.gov.in | Ongoing monthly compliance |
Shops and Establishment treatment of home offices varies by state (some exempt establishments without employees), and professional tax applies in about 21 states – PTEC for yourself plus PTRC once you hire. No other state licences apply to plain consultancy.
The right order to do it in
- Start lean: proprietorship (PAN + bank + Udyam) is fine for solo consulting; move to LLP or Pvt Ltd when clients, liability or hiring demand it. Choose your entity first: a proprietorship needs no central registration (PAN + bank account, with GST/Udyam/Shops-and-Establishment serving as business proof); a partnership needs a deed (register with the state Registrar of Firms – an unregistered firm cannot sue); an LLP files FiLLiP and a company files SPICe+ on mca.gov.in – the MCA fee for SPICe+ is NIL up to Rs 15 lakh authorised capital (state stamp duty extra).
- Register under Shops and Establishment per your state rules (home-office rules vary), and professional tax where levied.
- Take GST at Rs 20 lakh – or earlier if corporate clients want your GSTIN, or immediately if serving foreign clients (register + LUT for zero-rated exports).
- Skip the IEC unless you need FTP benefits – service exporters receive forex against purpose codes without it.
- Register on Udyam for MSME benefits (services qualify) and consider trademarking the firm name (class 35 or your service class).
- When you hire: PTRC, EPF at 20 employees, ESI at 10.
Documents to keep ready
Your NIC code: Division 70. Common Udyam picks: 70200 (management consultancy), 69201/69202 (accounting and tax services), 62020 (IT consultancy). Open the NIC Code Finder to search and copy the exact code.
Frequently asked questions
Does a consultant need any licence to practise in India?
For generic consulting – management, IT, marketing, HR – no licence exists at all. Only regulated professions practising as such (CA, CS, CMA, advocate, architect, doctor) need their professional body registration. Everything else on this page is tax and labour housekeeping, not permission to operate.
Do I need an IEC to invoice foreign clients for services?
No. Under FTP 2023 an IEC is not required for export of services unless you claim Foreign Trade Policy benefits or deal in restricted (SCOMET) services. Banks credit your foreign receipts against FEMA purpose codes without one. What you DO need once registered under GST is the LUT, so your export invoices are zero-rated. The old SEIS incentive that once justified taking an IEC stands discontinued.
When should a consultant register for GST?
The law says Rs 20 lakh aggregate turnover (Rs 10 lakh in the four special-category states) – and unlike goods, inter-state SERVICES within the threshold stay exempt. In practice, register earlier if your clients are companies that want input credit, or immediately if you serve foreign clients and want the zero-rated LUT route.
Proprietorship, LLP or company – what should a consultancy pick?
Solo practice: proprietorship, for its zero setup cost and simplest ITR. Two or more partners or meaningful contract risk: LLP, for liability protection at low compliance. Building a firm to scale, hire and maybe raise money: private limited – the MCA fee is nil up to Rs 15 lakh capital, though annual ROC compliance is the trade-off. You can start as one and convert later; many consultants do.
Related tools on CalcGuru
Business Registration Guide (all types)Which ITR Form? SelectorAdvance Tax CalculatorTrademark Fee CalculatorCompliance Calendar + email reminders
This page lists the registrations COMMONLY required for this type of business – sector-, product- and state-specific requirements may also apply, and thresholds change by notification. It is general information, not professional advice; confirm your specific case with the official portals linked above or a professional before acting. See our full disclaimer.