Jewellery business in India has always been a profitable business due to its popularity among people. Jewellery has been in India since ages and people are fond of such jewellery. Starting a jewellery business in India is an interesting, however, strategic business due to our diversity. However, with right market research and preparation, you can kick-start your business on the profitable road. In this article, you will learn all the relevant registrations required in the jewellery business and how you can prepare to start a jewellery business in India. You will learn how to set up a new business plan for starting a jewellery business in India.
How to start a jewelry business in India
While thinking of starting a new business it is necessary to do market research to know the market and the competitors in the market. While doing market research, you will also know the variety of products available in the market and which products have more demand and customer preferences. You will know all the things required like customers preferences, competition, profitable products, competitive pricing. You will come across the legal requirements for a jewellery business like New GST registration, company registration which is necessary for the success of your business. A good business plan is required for a successful business and good research results in a good business plan so it is very pertinent that you do good research of the business before stepping in it. As part of market research, you will have to check all the applicable local and national laws and registrations required to start a jewellery business in India.
As the jewellery business will fall under the definition of ‘goods’ under the Goods and Services Act, 2017 (“GST Act”) and if your annual turnover exceeds 20 lakhs in certain states or 10 lakhs as in some states then you are mandatorily required to register under GST and obtain a GST number. GST has removed many indirect taxes and is levied on goods and services, under the GST Act you are required to file returns on the GST portal providing details of your business and earnings. Further, GST rate differs on the product like if you deal in rough and un-worked diamonds, precious and semi-precious stones the GST rate is 0.25% and in case of pearls, gold, silver, articles of jewellery of gold and silver etc. is 3%. So it is mandatory to get register under the GST Act in case your turnover exceeds the maximum amount prescribed under the GST Act.
Next step is to determine the nature of your business like the company, partnership, limited liability partnership, one person company or sole proprietorship business. Once you have decided the same you will have to check the registration requirements under the said nature of the business. If we talk about starting a Private Limited Company you will have to register the company with the Ministry of Corporate Affairs to legalize your company. You will need minimum 2 people as the shareholders/ promoters of the company along with required documents like Memorandum of Articles and Articles of Association, the name of the Company, etc. you can register your company with the concerned registrar under the Companies Act, 2013 which can be done online also. The process of incorporating a private limited company is easy and after registration, you will receive a corporate identification number which will be the unique number of your company.
\Another important registration is Udyog aadhar registration which has been recently launched by the Government of India for the benefit of small, micro and medium enterprises. One can register under the Udyog aadhar to obtain the benefits and/or subsidies provided by the government to such enterprises. Through Udyog aadhar registration you can avail various benefits provided to small, micro and medium enterprises.
You will have to open a shop and get registration under shop and establishment act of the concerned state. You will have to decide the place of your business which has to be convenient and easy for the customers to find. Under the shop and establishment act, every shop is required to be registered and obtain a registration number under the act. Every state has their separate shop and establishment act.
After all the work, your next focus should be on the marketing of your business and jewelry shop. You should have an attractive marketing plan which attracts customers to your shop. You will also be required to hire managers and the people to manage the work in your shop from a receptionist to designers of the jewellery. You will have to keep in mind that your designs should be trademarked and should not violate the trademark of any other person.
Business registration is very important for your business, you can make your own company or you can incorporate your business as an LLP firm. Other legal registration like Udyog Aadhar registration, GST registration, Trademark registration, FSSAI License will protect your business.
Thus, with the right planning and funding you can kick-start your jewellery business, however, it is very important that you do proper market research so as to know all the rights and wrongs of jewellery business. You will have to think of a good business plan and you are halfway there, the implementation of the plan should also be in a good manner. For jewellery business you are required to obtain the above mentioned registration, however, as per concerned state law more registration may be required which you have to fulfill in order to be a business backed by law.