Starting a Small Business in India or Nepal: Registration, GST & Invoicing Essentials

Ready to Start? Here's What You Actually Need to Do#

Starting a business in India or Nepal doesn't require an MBA or a massive investment. What it does require is getting the paperwork right from day one — so you can focus on building your business instead of dealing with compliance issues later.

This guide covers the practical steps for both countries, side by side.

Business Registration#

India#

India offers several business structures, each with different compliance requirements:

Sole Proprietorship

• No formal registration required (though GST registration may be needed)
• Operate under your own PAN (Permanent Account Number)
• Simplest structure — just start trading
• No limited liability protection

One Person Company (OPC)

• Introduced in 2013 for single entrepreneurs who want limited liability
• Register through the Ministry of Corporate Affairs (MCA) portal
• Requires a minimum of 1 director and 1 nominee
• Annual compliance: financial statements, annual return, income tax return

Private Limited Company (Pvt Ltd)

• Most popular structure for funded startups
• Minimum 2 directors, 2 shareholders
• Register through MCA — typical cost ₹7,000–₹15,000 including government fees
• Limited liability protection
• Can raise equity funding

LLP (Limited Liability Partnership)

• Hybrid of partnership and company
• Lower compliance than Pvt Ltd
• Good for professional services (consultants, agencies)

Nepal#

Nepal's business registration process:

Sole Proprietorship (Ekal Swamitva)

• Register at your local District Administration Office or Department of Industry
• Cost: NPR 1,000–5,000 depending on the district
• Simplest structure
• Must renew annually

Partnership

• Register at the Department of Industry
• Partnership deed required
• Joint and several liability (similar to Australia)

Private Limited Company (Pvt Ltd)

• Register at the Office of the Company Registrar (OCR)
• Minimum 1 director, minimum share capital NPR 100
• Annual compliance: AGM, financial statements, tax returns

Key requirement: All businesses in Nepal need a PAN (Permanent Account Number) from the Inland Revenue Department (IRD) for tax purposes.

Tax Registration & Compliance#

India: GST#

India's Goods and Services Tax replaced multiple indirect taxes in 2017. It's a destination-based tax with multiple rate slabs.

GST Registration is mandatory if:

• Annual turnover exceeds ₹40 lakh (₹20 lakh for special category states)
• You sell across state lines (inter-state supply)
• You sell on e-commerce platforms
• You're a casual taxable person

GST Rates:

GST Return Filing:

• GSTR-1: Monthly/quarterly return of outward supplies (sales)
• GSTR-3B: Monthly summary return with tax payment
• Annual return (GSTR-9): Due by 31 December

Composition Scheme: For small businesses with turnover up to ₹1.5 crore — pay GST at a flat rate (1–6% depending on business type) with simplified quarterly returns.

Nepal: VAT#

Nepal uses a Value Added Tax (VAT) system.

VAT Registration is mandatory if:

• Annual turnover exceeds NPR 50 lakh for goods
• Annual turnover exceeds NPR 20 lakh for services

VAT Rate: 13% (single rate, much simpler than India's multiple slabs)

Filing: Monthly VAT returns due by the 25th of the following month.

Invoice Requirements#

India#

A GST tax invoice must include:

• Supplier's name, address, and GSTIN (15-digit GST number)
• Invoice number (unique, sequential, max 16 characters)
• Date of issue
• Recipient's name, address, and GSTIN (for B2B)
• HSN code (for goods) or SAC code (for services)
• Description, quantity, unit price
• Tax rate and amount (CGST + SGST for intra-state, or IGST for inter-state)
• Total amount
• Place of supply
• Signature or digital signature

E-invoicing: Mandatory for businesses with turnover above ₹5 crore — invoices must be registered on the Invoice Registration Portal (IRP) and include a QR code.

Nepal#

A VAT invoice must include:

• Seller's name, PAN, and VAT registration number
• Invoice number (sequential)
• Date
• Buyer's name and PAN (for B2B over NPR 10,000)
• Description of goods/services
• Quantity and rate
• VAT amount (13%)
• Total

Managing Your Business Digitally#

Gone are the days of ledger books and carbon-copy invoices. Digital tools save time, reduce errors, and keep you compliant.

What You Need#

1. Invoicing software — create professional invoices, track payments, send reminders
2. Expense tracking — log business expenses with receipt photos for tax claims
3. Contact management — keep all client information in one place
4. Bank reconciliation — match your bank transactions to your records
5. Tax reports — GST/VAT summaries ready for filing

Why Cloud-Based Software Wins#

• Access from anywhere — phone, tablet, or computer
• Data is backed up automatically
• Share with your accountant without sending files
• Real-time view of your business finances
• Scales as your business grows

How OneBookPlus Works for Indian & Nepali Businesses#

OneBookPlus supports businesses across multiple countries with:

• Multi-currency invoicing — bill in INR (₹), NPR (रू), USD, or any currency
• Flexible tax rates — configure GST slabs (5/12/18/28%) or Nepal's 13% VAT
• Professional invoices — branded with your logo, compliant formatting
• Expense tracking — categorise expenses, capture receipts with your phone
• Contact management — CRM for all your clients and suppliers
• Payment tracking — know who's paid, who's overdue, and follow up automatically
• Mobile-first — runs beautifully on any phone, even on slower connections
• Affordable pricing — plans starting from ₹499/month (India) and रू499/month (Nepal)
• Free plan available — start with core invoicing at no cost

Whether you're a freelance developer in Bangalore, a restaurant owner in Kathmandu, or a consulting firm in Delhi — OneBookPlus gives you the tools to run your business professionally from day one.

Sign up free at onebookplus.com.au.