Start Business in India: What It Costs and How to Do It in 2025

Thinking about launching a venture in India but not sure where to begin? You’re not alone. Hundreds of hopefuls ask the same thing: how much cash do I need and which paperwork comes first? The good news is there’s a clear path, and you can avoid costly mistakes by following a simple checklist.

How Much Money Do You Really Need?

Most people assume you need a huge bankroll, but the reality is more nuanced. For a small service‑oriented startup, 5‑10 lakhs can cover registration, basic branding, and a modest office space. If you aim for a product‑based business, especially one that needs inventory, expect to spend 25‑30 lakhs to handle raw material, storage, and initial marketing.

Take the example of a food‑delivery app that began with just a shared coworking desk and a ₹7 lakh seed fund. Their major expenses were developer fees, a minimal GST registration cost, and a modest advertising push. Within six months, revenue covered the outlay and the founders could reinvest.

Don’t forget hidden costs: legal advice for drafting partnership agreements, bank account setup fees, and any necessary permits. A good rule of thumb is to add a 15‑20% buffer to your budget for unexpected items.

Key Steps to Register & Run Your Business

Step 1: Choose a legal structure. Most beginners go for a Private Limited Company because it offers limited liability and easier access to investors. Sole proprietorship is simpler but ties personal assets to business risk.

Step 2: Get a Digital Signature Certificate (DSC) and Director Identification Number (DIN). These are mandatory for filing company documents online through MCA (Ministry of Corporate Affairs).

Step 3: Register your company name on the MCA portal. Make sure the name is unique and reflects your brand – a quick search can save you a lot of time.

Step 4: Apply for GST registration if your turnover crosses the ₹40 lakh threshold (₹20 lakh for services). Even if you stay below, getting GST early can simplify future compliance, especially if you sell to other states.

Step 5: Open a current bank account in the company’s name. Bring your incorporation certificate, PAN, and GST certificate to the bank. This separates personal and business finances, a must for clean accounting.

Step 6: Set up basic accounting software. Tools like Zoho Books or Tally are affordable and help you track expenses, invoices, and tax liabilities from day one.

Step 7: Secure funding if needed. Angel investors and venture capital firms in India often look for a clear pitch deck, realistic financial projections, and evidence of market demand. Platforms such as AngelList India or local startup events are good places to start.

After registration, focus on building your product or service, testing it with a small group of customers, and iterating fast. Use digital marketing channels – Instagram, WhatsApp Business, and Google Ads – to reach your first customers without blowing the budget.

Remember, the biggest barrier is often inertia. By breaking the process into bite‑size steps and budgeting realistically, you can move from idea to operating business faster than you think. Ready to take the next step? Grab a notebook, list your biggest expense, and start filing the paperwork today.