Company Registration for a Handicraft Business in India
A solo artisan selling directly or through a few marketplaces can start as a Sole Proprietorship or OPC. Once you're scaling into retail distribution, hiring other artisans, or exporting regularly, a Private Limited Company or LLP fits better. GST kicks in at the standard ₹40 lakh goods threshold, Udyam/MSME registration is genuinely worth doing for scheme access, and exporters need an IEC. Shunya registers any of these structures for a flat ₹1,999 professional fee.
Which structure fits — solo artisan or a scaling retail/export business
Handicraft businesses in India span a wide range, from a single artisan selling handmade pieces on Instagram or Etsy to a company sourcing from dozens of craftspeople and exporting to international buyers. The right legal structure depends on where you are on that spectrum.
Solo artisan or small home-based seller
If you're an individual artisan making and selling your own work, a Sole Proprietorship is the fastest way to get started, with minimal ongoing compliance. If you'd rather keep your personal assets separate from business liability while still operating solo, an OPC (One Person Company) gives you that protection without needing a co-founder.
Scaling into retail, distribution, or export
Once you're bringing on other artisans, opening retail or wholesale channels, working with institutional buyers, or exporting regularly, a Private Limited Company is usually the better fit — it's easier to raise funding into, easier to contract under with larger buyers, and scales cleanly as your team grows. An LLP is a reasonable middle ground if you're a small partnership that wants lighter compliance without immediate funding ambitions.
GST threshold for a handicraft business
Handicrafts are goods, so the standard goods threshold applies: GST registration becomes mandatory once your turnover crosses ₹40 lakh in a financial year (₹10 lakh in special category states). Below that threshold, registration is optional.
There's one important exception worth knowing early: if you sell through an e-commerce marketplace that collects TCS (Amazon, Flipkart, Etsy's India operations, and similar platforms), or you supply goods inter-state, Section 24 of the CGST Act removes the turnover exemption entirely — registration is mandatory from your very first sale, regardless of how small your revenue is. Many artisans selling through marketplaces run into this rule earlier than they expect.
Talk to Shunya's CA team — we'll walk through your scale, sales channels, and export plans before you commit to a structure.
Talk to a CA →Udyam/MSME registration — genuinely useful for handicraft businesses
Udyam (MSME) registration is free, entirely online, and lifetime — and for a handicraft business specifically, it's one of the more genuinely useful registrations you can add beyond incorporation. A meaningful share of handicraft-specific government schemes, artisan welfare programs, and export incentive schemes are tied to MSME status, so registering isn't just a formality — it's a real gateway to support that's built for businesses exactly like yours.
Classification follows the current FY2025 tiers, in force through 2026:
- Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore
- Small: investment up to ₹25 crore and turnover up to ₹100 crore
- Medium: investment up to ₹125 crore and turnover up to ₹500 crore
Most individual artisans and small handicraft units fall comfortably within the Micro category at launch.
IEC — if you're exporting handicrafts
Indian handicrafts have a strong export market, and if you plan to sell to buyers outside India, an Import Export Code (IEC) is mandatory — the same requirement that applies to any exporter, regardless of product category. Rather than repeat the full IEC process here, see our dedicated guide on company registration for an import-export business, which covers how IEC registration works alongside your company incorporation.
How Shunya prices this
Shunya charges a flat professional fee of ₹1,999 to register a Private Limited Company, LLP, or OPC — the same fee regardless of whether you're a solo artisan or a scaling handicraft brand. Government fees and state stamp duty are billed separately at actual cost, confirmed before you pay. GST, Udyam, and IEC are separate registrations, priced and filed on their own; see our full breakdown of company registration cost in India for how the components add up.
This article is for general information only. For your specific situation, consult a practicing CA.
Register your handicraft business the simple way
Start your company registration with Shunya — ₹1,999 flat professional fee, no hidden costs, and a CA who understands artisan and export businesses.
Get Started →What structure fits a handicraft business?
It depends on where you are in your journey. A solo artisan selling directly or through a handful of marketplaces is usually best served by a Sole Proprietorship or an OPC — simple to run, minimal compliance. Once you start scaling into retail distribution, hiring artisans or staff, or exporting regularly, a Private Limited Company or LLP gives you a formal structure that is easier to fund, contract with buyers under, and grow.
Is Udyam registration useful for artisans?
Yes. Udyam/MSME registration is free, online, and lifetime, and a genuinely large share of handicraft-specific government schemes, subsidies, and export incentives are tied to MSME status. Classification depends on investment and turnover: Micro is up to ₹2.5 crore investment and up to ₹10 crore turnover, Small is up to ₹25 crore and up to ₹100 crore, and Medium is up to ₹125 crore and up to ₹500 crore. Most individual artisans and small handicraft units fall in the Micro category.
Do I need an IEC to export handicrafts?
Yes, if you plan to export, an Import Export Code (IEC) is mandatory, the same requirement that applies to any exporter regardless of product category. See our dedicated guide on company registration for an import-export business for how the IEC process works alongside your company registration.
Does a handicraft business need GST registration?
The standard goods threshold applies: GST registration becomes mandatory once your turnover crosses ₹40 lakh (or ₹10 lakh in special category states). Below that, registration is optional unless you sell through an e-commerce marketplace that collects TCS, or you supply goods inter-state, in which case Section 24 of the CGST Act removes the turnover exemption and registration is mandatory from your first sale.
What does Shunya charge to register a handicraft business?
Shunya's professional fee is a flat ₹1,999 for registering a Private Limited Company, LLP, or OPC, regardless of business category. Government fees and state stamp duty are billed separately at actual cost. GST, Udyam, and IEC registrations are separate services, priced and filed on their own.