Environment Laws

Overview of Green Business Setup Process in India

calendar18 Mar, 2023
timeReading Time: 3 Minutes
Overview of Green Business Setup Process in India

Climate change is accurate, and it is high time that nations and international organizations act on the ground. Setting up a green business in India is a sound investment for several reasons. Green business setup is seeing significant market growth and success as 65 percent of Indians want to buy from sustainable brands. As per the Environment Protection Act, environmental issues will alter the regulatory and market landscape in the near future. Entrepreneurs or businessmen are seeking opportunities to set up an eco-minded business and protect the environment at the same time. Today, consumers are demanding or we can say interested, in non-toxic, green products and their corporate social responsibility (CSR). They are becoming more conscious of their choices and are willing to invest more in a sustainable products. In this blog, we will discuss ideas for setting up your own green business in India.

Initiatives taken by GOI to promote Green Businesses

India’s Prime Minister Mr. Narendra Modi[1], highlighted investment opportunities in areas like green hydrogen ecosystem, vehicle scrapping and energy transition, such as increasing renewable energy production, reducing fossil fuels usage and taking the country towards a gas-based economy. Green Initiatives taken by GOI are as follows:

  • National Solar Mission (MNRE)
  • National Improved Energy Efficiency Project (under the Ministry of Power)
  • Global Sustainable Environment Plan (under the Ministry of Housing and Urban Affairs)
  • Global Water Project (MWR)
  • Green Business Scheme
  • National Green Hydrogen Mission

What Do You Understand By Green Business?

The green business describes a company that does not negatively impact the environment, economy, or community. It uses sustainable materials to make its products. It aims to use less water, energy and raw material as possible while cutting carbon emissions, or it finds ways to utilize these materials in renewable and eco-friendly ways like solar panel installation.

Green Business Ideas for Future India

These are some setup ideas to make your business consumer-friendly and support the environment:

  • Green Energy businesses like Hydrogen plant setups, hydropower plants etc.
  • Zero Waste Shopping Gear includes reusable shopping bags, bread bags, produce bags, etc.
  • Manufacturing smart and energy-efficient equipment
  • Support Businesses for renewable energy like Solar panel installation
  • Offer sustainable consulting services                         
  • Refurbish electronics
  • Electric vehicles (EV) & charging
  • Eco-friendly retailing
  • Setting up biofuel plants
  • Rainwater Harvesting Projects

Green Business Practices

These are some sustainable or green business practices mentioned below:

  • Switching to energy-efficient LED light bulbs
  • Eliminate Plastic bottles
  • Do business with green vendors
  • Recycle and Reuse
  • Circular economy initiatives
  • Use green cleaning products
  • Lowering energy consumption and improving efficiency.
  • Complying with environmental laws and regulations
  • Purchasing green equipment, products, and services.

Benefits of setting up Green Business Setup

The basic approach behind the Green business setup is to minimize the company’s strain on natural resources and contributions to climate change. In some cases, if waste is generated, it is reused as energy or raw material. Referring to the efforts for diversification of energy supply chain, PM Modi said that the Budget has given a an opportunity to every green energy investor to invest in India, and it will also be beneficial to startups in the sector.

Steps To Set Up a Green Business in India

  1. Deciding your Business Structure like
    • Types of Business Structure: LLP, Pvt. Ltd., Public Limited company etc.
    • Number of owners/partners: Minimum 2 Directors & maximum 15 Directors.
    • Initial Investments in the business
    • Liability
    • Income Tax Rates
    • Attracting Investors
  2. Obtaining a DSC (Digital Signature Certificate)
    • Different Classes of Digital Signature Certificates (DSC):
      Class 1 Certificate: Individuals/Private Subscribers.
      Class 2 Certificate:  Business Personnel as well as for personal and private use.
      Class 3 Certificate: High Assurance Certificates. Majorly for E-commerce Operators, whether individuals or organizations.
  • File for Name Approval or incorporate a company
  • Obtain DIN (Director Identification Number)
  • File for Incorporation
  • File AoA and MoA: Articles of Association and  Memorandum of Association.

Documents Required For Green Business Setup Registration

  1. Directors Documents:
    • Valid ID or address proof, i.e. Aadhar card, Passport, latest electricity bills etc.
    • PAN Card
    • Mobile Numbers linked with their Aadhar
  2. Company Documents:
    • Registered Office Address Proof: Latest Power Bill
    • NOC from Owner
    • Company email id.

Other Required Licenses

These are some other required licenses to set up a Green business in India which is given below:

  • MSME Registration
  • Import Export Code (IEC)
  • Shops & Establishments Registration
  • Professional Tax Registration (PT)
  • FSSAI License
  • Local Trade License

Green Business Certification

Following are the Green business certification listed below:

  • LEED
  • Energy Star
  • BIS
  • GBCI India
  • Eco-Labelling
  • Eco Mark

Green Business Setup vs Conventional Business Setup

S.No. Green Business Conventional business
1 Create an economically profitable, environmentally conscious business model, and creates social value. Create a business model that is economically profitable only.
2 Focuses mainly on sustainable finance. Focuses majorly on profit.
3 Examples: Reusable bagReusable Coffee CupsStainless Steel Drink BottlesRecycled and Recyclable CutleryCompostable BowlsCertified Compostable Bin LinersEco Laptop Examples: Beverage cupsTea boxesDisposable utensilsPlastic spoons and forksSingle-use razorsMenstrual hygiene productsPlastic or polyethylene bags


The challenges brought about by climate change have made the shift towards sustainable consumption and production a necessity for the well-being of consumers. Green business has negatively impacted the environment causing excessive pollution. Therefore, it is essential that before setting up a green business in India, along with keeping in mind the market, the business owners also take responsibility for their products and ensure that their products are correctly managed even after manufacturing to achieve sustainable development goals (SDGs). Appropriate solution and guidance are needed from environmental professionals to ensure a sustainable and green business setup for the future economy.

Also Read:
The Future Of Cleantech Sector In India: An Overview

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