Starting a Business in Delhi: Choosing a Structure and Local Registrations

Choosing a structure and incorporating works the same way across India. But starting a business in Delhi also means dealing with local registrations and local authorities, and knowing the local startup ecosystem. This guide covers the local side.

Incorporation and the ROC

Companies and LLPs with a registered office in Delhi are registered with the Registrar of Companies, NCT of Delhi and Haryana. The registered office can be a home, a co-working space, or an office, with the right address proof.

Local Registrations

• Professional Tax: Delhi doesn't levy professional tax, so there's no enrolment or deduction to set up for staff based in Delhi.
• Shops and Establishments: The Delhi Shops and Establishments Act applies to commercial establishments, including a company's office. Register online with the Delhi Labour Department.
• Trade licence: Depending on the business, an office within the Municipal Corporation of Delhi or the New Delhi Municipal Council area may need a trade or health licence from the local body.
• GST: registration once turnover crosses the threshold, or immediately in compulsory cases. In Delhi, the threshold is ₹40 lakh for goods and ₹20 lakh for services.

Industrial and Manufacturing Units

Manufacturing and industrial units need further approvals — building permissions, fire safety, pollution control consents, factory licences, and power connections. In Delhi, the administration's online clearance system brings many of these together. Industrial land is often allotted through DSIIDC (Delhi State Industrial and Infrastructure Development Corporation).

The Startup Ecosystem

Startups in Delhi are concentrated around Delhi and the wider NCR. Local support includes:

• Some of India's most active angel networks, VC funds and family offices.
• Incubators such as the Foundation for Innovation and Technology Transfer at IIT Delhi.

Startups can also apply for DPIIT recognition nationally, and explore the administration's policies for startups and innovation.

Choosing a Structure

The choice of structure doesn't depend on the union territory, but local factors can matter: local incentives may be tied to the entity that applies for them, and land allotments may restrict transfers, so it's best to set up the long-term entity before applying for either.

A Checklist for Founders in Delhi

1. Choose the structure based on funding plans and risk.
2. Incorporate with the ROC, or set up the proprietorship's registrations.
3. Register under Shops and Establishments where it applies.
4. Get a trade licence for your premises.
5. For manufacturing, apply for approvals through the administration's online clearance system.
6. Explore local incubators and startup programmes.

Getting Help

Think Filing helps founders start businesses in Delhi, from incorporation to local registrations.