diff --git a/ugit/cli.py b/ugit/cli.py
index f79cc66..8f7817b 100644
--- a/ugit/cli.py
+++ b/ugit/cli.py
@@ -1,4 +1,7 @@
 import argparse
+from pathlib import Path
+
+from . import data
 
 
 def main():
@@ -19,4 +22,5 @@ def parse_args():
 
 
 def init(args):
-    print("Hello, World!")
+    data.init()
+    print(f"Initialized empty ugit repository in {Path.cwd()}/{data.GIT_DIR}")
diff --git a/ugit/data.py b/ugit/data.py
new file mode 100644
index 0000000..6e6d553
--- /dev/null
+++ b/ugit/data.py
@@ -0,0 +1,7 @@
+from pathlib import Path
+
+GIT_DIR = ".ugit"
+
+
+def init():
+    Path.mkdir(GIT_DIR)