Why Register Your Practice?
Starting a private practice in India requires careful navigation of legal requirements. Whether you're a psychologist, counselor, or psychotherapist, proper registration not only ensures compliance but also builds trust with your clients and opens doors to insurance partnerships, corporate clients, and government schemes.
This guide covers requirements for all major Indian cities including Mumbai, Delhi, Bangalore, Chennai, Hyderabad, and Pune.
Choose Your Business Structure
The first decision is how to legally structure your practice
Proprietorship
Simplest form, full control, but unlimited personal liability. Ideal for solo practitioners starting out.
Partnership
When starting with 2+ practitioners. Requires partnership deed. Shared liability based on agreement.
Private Limited Company
Best for scaling, multiple locations, or bringing in investors. Limited liability protection.
LLP (Limited Liability Partnership)
Professionals-friendly structure with limited liability. Popular among doctors and consultants.
One-Person Company (OPC)
Single practitioner can form OPC with limited liability. No minimum capital required. Must convert to Pvt Ltd after 2 years or ₹50 crore revenue.
Professional Registration
Mandatory registrations for mental health professionals
RCI Registration (Mandatory)
If you're a psychologist, rehabilitation specialist, or behavioral therapist, registration with the Rehabilitation Council of India (RCI) is mandatory. Without RCI certification, you cannot legally practice in India.
State Psychology Council
Many states (Maharashtra, Karnataka, Tamil Nadu) require additional state-level registration. Check your state's specific requirements.
Medical Council (For Psychiatrists)
Psychiatrists must register with the National Medical Council (NMC) or state medical council. M.D. Psychiatry holders need NMC registration.
Business Registrations
Essential registrations for operating legally
GST Registration
Mandatory if annual revenue exceeds ₹20 lakhs (₹10 lakhs in special category states). Even below threshold, GST enables input tax credit on equipment and supplies.
GST Rate: 18% on services (if registered)
PAN & TAN
PAN (Permanent Account Number) is mandatory for all businesses. TAN (Tax Deduction Account Number) required if you have employees or make certain payments.
Shop & Establishment Act
Register under your state Shops & Establishments Act within 30 days of starting operations. Required for Mumbai (Shops Act), Delhi, Bangalore, and all other major cities. Penalties for non-compliance.
MSME UDYAM Registration
Optional but highly recommended for small practice owners
Register your practice under the UDYAM portal (udyamregistration.gov.in) to access government benefits and schemes.
Government Schemes for Mental Health Practices
Schemes applicable to mental health professionals and wellness businesses
PMEGP Scheme
Prime Minister's Employment Generation Programme - Subsidy up to 35% for setting up new practice. Apply through KVIC.
MUDRA Loans
Collateral-free loans up to ₹10 lakh under Shishu, Kishore, Tarun categories. No processing fee.
Stand Up India
Loans between ₹10 lakh to ₹1 crore for SC/ST and women entrepreneurs. Repayment period 7 years.
NHFDC Loans
National Handicapped Finance & Development Corporation - Loans for differently-abled practitioners.
Startup India
Tax benefits, fast-track patent registration, and funding support for wellness startups.
DC (MSME) Schemes
Various schemes from Development Commissioner MSME including credit guarantee, raw material assistance.
Clinical & Safety Compliances
Essential for maintaining a professional practice
Fire Safety
Fire NOC from local fire department required for commercial spaces
First Aid
First aid kit mandatory. Basic medical supplies required on premises
Accessibility
wheelchair access recommended for inclusive practice
Choose Your Practice Location
Location impacts your client base and compliance requirements
Commercial Spaces
- IT parks & business hubs
- Near hospitals/medical complexes
- Premium retail spaces
- Near educational institutions
Residential Spaces (Home Clinic)
- Convert designated area to clinic
- NOC from housing society
- Minimum 150 sq ft treatment room
- Parking access for clients
Estimated Registration Costs
* Costs are approximate and vary by city and business structure
Disclaimer: The costs mentioned above are for informational purposes only and may vary. Please verify the actual fees with the respective authorities (RCI, GST department, local municipal corporation) before proceeding with registration.
Ready to Start Your Practice?
Book a free 30-minute discovery call to get personalized guidance on setting up your private practice.