§1How big it is

§2Ways to get started

  • Kirana or general store with UPI and home delivery
  • Franchise outlet (pharmacy, food, apparel, eyewear)
  • Speciality store in your district's ODOP product
  • Sell online through ONDC alongside the shop

See the Business Encyclopedia

§3Hubs and clusters

  • Every town and city; ASUSE reports Uttar Pradesh, West Bengal and Maharashtra with the most unincorporated establishments

§4Licences and registration

  1. Municipal trade licence
  2. FSSAI registration (turnover up to Rs 12 lakh) or licence for food retail
  3. Retail drug licence (Form 20/21) with a registered pharmacist for medical stores
  4. PESO licence and oil company dealership for fuel stations
  5. Franchise agreement and brand approvals for franchise retail
  6. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
  7. GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
  8. Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
  9. Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
  10. IEC (Importer Exporter Code) from DGFT if you import or export

§5Regulators

  • State Labour Department (Shops & Establishments Act)
  • Legal Metrology (MRP and package labelling); FSSAI (food retail)
  • State Drug Controller (pharmacies); PESO and oil marketing companies (fuel stations)
  • Local municipal body (trade licence)

§6Government help

  • PM SVANidhi working-capital loans for street vendors - status not checked in this pass
  • UPI / QR payments reduce cash handling at zero MDR for small merchants [PIB Sep 2025]
  • Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)

All schemes

§7Pros and cons

Merits

  • Low capital; quick cash cycle
  • Very large base of small retailers shows the model works everywhere [MoSPI ASUSE]

Demerits

  • Competition from quick-commerce and e-commerce
  • Rent and location risk; thin margins on FMCG

Sources

  1. PIB (MoSPI): Annual Survey of Unincorporated Sector Enterprises (ASUSE) results 2023-24 (24 Dec 2024)
  2. PIB feature: UPI - India's Digital Revolution Goes Global (17 Sep 2025)