How to start a D2C consumer brand in India: registrations and licences

Why most D2C founders choose a private limited company

D2C brands usually raise angel or venture funding, issue ESOPs to early hires and sign contracts with manufacturers, marketplaces and logistics firms. A private limited company supports all of this. It can also seek DPIIT startup recognition if it meets the criteria, including the revised turnover cap of ₹200 crore under the February 2026 notification.

An LLP can work for a bootstrapped brand but cannot issue equity to investors in the usual way, so most founders who plan to raise money start as a company.

Registrations and licences for a D2C brand

Some registrations apply to every brand; others depend on what you sell. Contract manufacturing does not remove your obligations as the brand owner on the label.

GST for D2C brands

Selling goods to customers in other states through your own website is an inter-state supply, which requires GST registration regardless of turnover. Most D2C brands therefore register from day one. The rate depends on the product's HSN code; after September 2025 many everyday goods moved to 5% or 18%, so check your classification rather than relying on old rate charts.

If you also sell on marketplaces, those platforms collect GST TCS at 0.5% of net taxable supplies, which shows as a credit in your electronic cash ledger. Keep warehouse addresses, including marketplace fulfilment centres, added to your GST registration as additional places of business.

Ongoing compliance

Every package needs Legal Metrology declarations: manufacturer or packer name and address, net quantity, MRP inclusive of taxes, month and year of manufacture or packing, and consumer care details. Your website must display the key details on product pages, together with return, refund and grievance officer information under the e-commerce rules.

Annual EPR returns, GST returns, ROC filings and income-tax returns form the recurring calendar. Brands making claims such as 'organic', 'clinically tested' or 'natural' should keep evidence, because misleading advertising can attract action under consumer protection law.

Startup recognition and tax benefits

DPIIT recognition is optional but useful. Under G.S.R. 108(E) of February 2026, an entity qualifies if it is within 10 years of incorporation and its turnover has not exceeded ₹200 crore in any year, among other conditions. Recognised startups can self-certify under some labour and environmental laws and access government schemes.

Recognition alone does not give a tax holiday. That needs a separate certificate from the inter-ministerial board, and eligibility conditions apply. Angel tax on share premium was abolished from financial year 2024-25, so pricing a funding round no longer carries that risk.

Pitfalls D2C founders run into

Fixing packaging after a print run is expensive, so review labels against FSSAI, cosmetics or Legal Metrology rules before ordering stock, and keep a sign-off record for each artwork version.

• Investing in a brand name before checking trademark availability.
• Assuming the contract manufacturer's licences cover the brand owner's label obligations.
• Missing EPR registration because packaging is outsourced.
• Displaying MRP excluding taxes or omitting net quantity on listings.

Step by step

1. 1Incorporate

   Register a private limited company and obtain PAN, TAN and a bank account.

2. 2Search and file the trademark

   Check availability and file in the relevant classes.

3. 3Register for GST

   Add every warehouse and fulfilment centre as a place of business.

4. 4Get category licences

   FSSAI, cosmetics licence or BIS certification as your product requires.

5. 5Complete packaging compliance

   Obtain Legal Metrology registration and EPR registration where applicable.

6. 6Publish compliant policies

   Add returns, refunds, grievance officer and seller details to your website.

7. 7Set up the compliance calendar

   Track GST, EPR, ROC and income-tax deadlines.