We start the general structure theory of not necessarily semisimple finite tensor categories, generalizing the results in the semisimple case (i.e. for fusion categories), obtained recently in our joint work with D.Nikshych. In particular, we generalize to the categorical setting the Hopf and quasi-Hopf algebra freeness theorems due to Nichols-Zoeller and Schauenburg, respectively. We also give categorical versions of the theory of distinguished group-like elements in a finite dimensional Hopf algebra, of Lorenz's result on degeneracy of the Cartan matrix, and of the absence of primitive elements in a finite dimensional Hopf algebra in zero characteristic. We also develop the theory of module categories and dual categories for not necessarily semisimple finite tensor categories; the crucial new notion here is that of an exact module category. Finally, we classify indecomposable exact module categories over the simplest finite tensor categories, such as representations of a finite group in positive characteristic, representations of a finite supergroup, and representations of the Taft Hopf algebra.