Trading – buying and selling goods, retail or wholesale – is the simplest business model in India to register. Most traders need only three to five registrations, and several are free. This page lists exactly what applies, what each costs, and the order to do it in.
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 40 lakh for goods (Rs 20/10 lakh in special-category states). ANY inter-state sale of goods makes registration compulsory regardless of turnover (s.24). Simplified 3-day auto-approval scheme live since 1-Nov-2025. | 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) |
| 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 |
| 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 |
| Trade licence Required for specific trades in many municipalities – verify with your local body. | IF APPLICABLE | Rs 500 – 10,000 per year (city-wise) | Municipal corporation / local body | Annual renewal |
| FSSAI registration / licence Only if you trade in food. NEW SLABS from 1-Apr-2026: Basic registration now covers turnover up to Rs 1.5 CRORE; State licence 1.5-50 crore; Central above 50 crore. | IF APPLICABLE | Basic Rs 100 per year; State Rs 2,000-5,000; Central Rs 7,500 (as per FoSCoS) | FSSAI (FoSCoS) foscos.fssai.gov.in | PERPETUAL since the March 2026 amendment – renewals abolished |
Shops and Establishment, trade licence and professional tax are state or municipal subjects – fees and processes vary. Use our state-wise S and E guide and PT pages linked above for your state.
The right order to do it in
- Pick the entity and get its base registration done (PAN, deed or SPICe+/FiLLiP as applicable). 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).
- Open the current account and get Udyam registration (free, 10 minutes, needs only Aadhaar + PAN).
- Register under your state Shops and Establishment Act within 30 days of starting.
- Take GST registration if you cross Rs 40 lakh, sell inter-state (compulsory from day one for goods), or your buyers need your GSTIN for input credit.
- Add the conditional items: trade licence if your municipality requires it for your trade, FSSAI if food, professional tax where levied.
Documents to keep ready
Your NIC code: SPICe+/FiLLiP take Division 46 (wholesale) or 47 (retail). Common Udyam picks: 47110 (kirana/supermarket), 47190 (general retail), 46909 (general wholesale), 47912 (online retail). Open the NIC Code Finder to search and copy the exact code.
Frequently asked questions
Do I need GST registration to start a trading business?
Not immediately, unless you sell inter-state. For goods, ANY inter-state sale makes GST compulsory regardless of turnover; purely intra-state traders register once turnover crosses Rs 40 lakh (Rs 20/10 lakh in special-category states). Most wholesale traders register early anyway because business buyers need a GSTIN for input credit.
Is a trade licence mandatory for every shop?
No – it depends on your municipality and the nature of the trade. Many local bodies require it only for specific trades (eateries, hazardous goods, health-related). Check your municipal corporation website; fees typically run Rs 500 to 10,000 per year.
What is the cheapest legal way to start trading?
A proprietorship: no central registration exists for it, so PAN plus a current account plus free Udyam registration and a state Shops and Establishment registration gets you fully operational. Total government outgo in most states is under Rs 2,000.
Do I need FSSAI to trade in food items?
Yes – even pure traders and distributors of food need FSSAI. From 1 April 2026 the Basic registration (Rs 100 a year) covers turnover up to Rs 1.5 crore, which now includes most small traders; above that a State licence applies. Licences issued now have perpetual validity – the renewal system was abolished in March 2026.
Related tools on CalcGuru
Business Registration Guide (all types)S and E Registration – state-wiseGST CalculatorCompliance Calendar + email remindersTrademark Fee Calculator
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.