How to start an apparel or fashion brand in India: registrations and licences

Choosing a structure

Designer labels and small boutiques often begin as proprietorships. Brands that plan to sell on marketplaces at scale, open stores or raise funds usually form a private limited company. An LLP suits two or three designers sharing profits without outside investors.

Udyam registration is useful for garment businesses because many buyers and sourcing partners are MSMEs, and MSME status gives protection against delayed payments by larger buyers. It also helps when applying for credit lines to buy fabric in bulk ahead of a season.

Registrations for an apparel brand

There is no fashion-specific licence in India. The registrations below cover a brand that designs, sources or manufactures garments and sells them online and through its own or partner stores.

GST rules for garments

The September 2025 rationalisation kept garments and made-ups priced up to ₹2,500 per piece at 5%, and moved those above ₹2,500 from 12% to 18%. The threshold is the sale value per piece, so discounts and pricing strategy can change the applicable rate. Footwear up to ₹2,500 per pair dropped from 12% to 5%.

Designers selling high-value pieces should price with the 18% rate in mind. Input tax credit is available on fabric, trims, job work and services. Job work for apparel has its own rate entries, so check the current rate with your adviser when paying tailors or units.

Labelling and product rules

Packaged garments sold at retail need Legal Metrology declarations: manufacturer, packer or importer details, generic name, size, MRP inclusive of taxes, month and year of manufacture or import, and consumer care details. Online listings must show the same mandatory information. Marketplaces may suspend listings that omit these details.

Certain textile products are covered by BIS quality control orders, mainly in technical and protective textiles. Check whether any product you sell is notified. Fibre content and care labelling claims should be accurate, since misleading claims can draw consumer complaints.

Manufacturing and labour compliance

The OSH Code came into force on 21 November 2025. A unit with 20 or more workers using power, or 40 without, is a factory and needs licensing and safety compliance; establishments with 10 or more workers must register. Contract labour licensing applies at 50 or more contract workers.

Garment units employ many workers, so ESIC applies from 10 employees and EPF from 20. Minimum wages under the Code on Wages and state notifications must be paid. Brands sourcing from third-party units increasingly audit suppliers for these compliances.

Pitfalls for fashion founders

Brand disputes are common in fashion, so search trademarks and file early, and keep dated records of original design work in case you need to prove authorship.

• Launching under a name already registered by another brand in class 25.
• Displaying designs publicly before filing a design application.
• Using 12% GST on garments above ₹2,500 after the 2025 change.
• Skipping MRP and size declarations on online listings.

Step by step

1. 1Choose the entity

   Proprietorship, LLP or private limited company, plus Udyam.

2. 2Clear and file the trademark

   Search class 25 and related classes, then file.

3. 3Register for GST

   Required for inter-state sales and most marketplace selling.

4. 4Protect designs

   File design applications for original pieces before launch.

5. 5Set up labelling

   Legal Metrology registration and compliant tags.

6. 6Plan production compliance

   OSH Code, wages and social security for own units.

7. 7Price for GST

   Map products to 5% or 18% based on per-piece value.