Start as a sole proprietor selling one narrow expertise to the kind of client who already knows your work. In India generic consulting needs no licence (only regulated professions such as CA, CS, law and architecture need their body's registration): a PAN, a bank account, Shops and Establishment registration in most states, professional tax where levied and free Udyam registration are enough. Register for GST once turnover passes Rs 20 lakh, or earlier if company clients want your GSTIN, and file a Letter of Undertaking each financial year so invoices to foreign clients go out without GST; you do not need an Import Export Code to export services. Win the first client from your own network, write a one-page proposal that prices the outcome rather than the hour, and turn the first project into a monthly retainer. Move to an LLP or a private limited only when partners, liability or hiring demand it. What kills most consultancies is having no niche, so every month starts from zero.
A clear July 2026 checklist for a consulting practice in India: no licence for generic consulting, Shops and Establishment in most states, professional tax where levied, GST at Rs 20 lakh of services turnover, an LUT for zero-rated foreign billing, and why you do not need an IEC to export services.
A tighter second read that makes the "register early" case concrete: it lists 12 scenarios that force registration regardless of turnover and states plainly that below-threshold businesses register voluntarily to unlock input tax credit and to look credible. It also names the documents you need (PAN, ID proof, digital signature) so you know what to gather before you start.
An October 2026 explainer of when a service counts as an export under GST, how the Letter of Undertaking lets you invoice foreign clients without GST, and how to reclaim input credit that piles up when your output carries no tax.
Jonathan Stark's short book for consultants and freelancers on pricing by value instead of by the hour: why hourly billing caps your income and punishes you for getting faster, and how to move to fixed project prices and retainers.
Patrick McKenzie's classic account of turning a technical skill into a high-end consultancy: clients pay for value, not time, and the first engagement came from writing in public and one conversation with someone who had a problem.
The government's own comparison, and it leads with the exact filter you need: if you are raising funding, the decision is made for you (Private Limited), and everything else is secondary. It covers all five Indian structures including OPC. Two parts are dated: its OPC section still says an OPC must convert past Rs 2 crore of revenue or Rs 50 lakh of capital, a rule removed in 2021, and its tax lines mention dividend distribution tax, which no longer exists.
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Startup Indiaby Startup India (DPIIT)12 min read
Only a Private Limited company can take external equity, so investors decide your structure before anything else does
A sole proprietorship gives you zero liability protection; an OPC or LLP gives it without a co-founder, and an OPC no longer has to convert when it grows
LLP fits a bootstrapped, non-scalable business; Private Limited fits one that will raise and hire
The GST portal's own FAQ on the Letter of Undertaking: who must furnish it before exporting goods or services without paying IGST, including services to a client outside India, and where to file it on the portal (Services > User Services > Furnish Letter of Undertaking).
