Dear Syed,
You didn't mention where you want to set up your business, no.of persons to be employed and other details. However for setting up a small proprietorship firm no elaborate procedure is required. If your place is within Karnataka-
1.Arrange address proof (like Electric Bill or landline phone bill (BSNL/MTNL) or corporation water bill, ration card, property tax paid receipt, sale deed or rent/lease agreement of the building where you are setting the business
2.You have to obtain your PAN from IT Dept.
3.Thirdly, simultaneously- you have to obtain your TAN No. also from IT Dept. to effect TDS/TCS and to remit IT.
4.Open a bank a/c.with any of a Scheduled Bank either PSU or Pvt.sector banks in the name of your firm and obtain a cheque book. You have to register under the Karnataka Shops & Commercial Estt Act and obtain a Certificate of Registration in Form 'C'
5. If your business is considered a 'Service' provider which requires a separate registration under the Service Tax Rules (Finance Act) from the Central Excise Department, the ED would issue a certificate of registration and Service Tax regn.No based on your IT PAN No.
6. MSMED (micro/small/medium) firm certificate from the O/o the Commissioner of Industries & Commerce which will help you to get loan, quick realisation of your bills etc.
7. If more than 10 persons are employed, registration with PF Commissioner for Employees Provident Fund.
8. Similarly with Employees State Insurance Corpn. if applicable to you.
These are more than enough to start for your type of business.
However you have to examine/consult for whether regn. under CST or Commercial Tax for VAT is required or not.
You will find so many consultants (brokers) roaming in the corridors of govt.offices or CA who will help you to get all these things done, ofcourse for a fees/charges. Practicallyit is very difficult if you would try to do it yourself, you know better how things are done in India.
All the best.