2020/12/09 16:32:33
How to Start Furniture Business in India
India is a very populous country, the second with the most number of people in the world. This is both a problem and a blessing for the nation. This kind of population is really good for business, especially when that venture involves necessities like furniture.
So how is the furniture business in India? Are there laws and regulations that govern how people conduct business in the country? How strict are they? We are going to look into these questions. The following are some of the ways you can start a furniture business in India.
Company Registration
You have to first register your company. It is a requirement that allows the government to monitor your business for tax compliance and other regulatory obligations. In India, there’s a Company’s Act that was passed in 2013 that takes care of business registrations based on five classifications.
- Based on the size of the business
- Based on the control of the business
- Based on the number of member-owners
- Based on the liability
- Based on listed or unlisted status
There’s another registration called the GST, which mandates a business to submit all its details if it reels in an annual turnover of 20 lakh. It is also a registration you will have to conduct if you ever plan to sell your furniture through an online portal or overseas.
No Objection Certificate
This is a certificate issued by the Pollutions Control Boards depending on the Indian state your furniture business is based in. Since most furniture products use wood, it is up to these boards to enforce compliance to ensure that your business doesn’t impact the environment negatively in any way.
The same certificate is also issued by the fire department. The reason for this is that wood furniture materials are considered flammable and the possibility of a fire breaking out at any moment is very high.
BIS Certification
This is a certificate issued by the Bureau of Indian Standards to certify that the goods you are producing are up to the required quality for consumption. This is a very important certificate that every business owner has to have before they start any operation. It is mainly aimed to protect consumers from unscrupulous people who make low-quality things just to make a quick buck.
IEC Registration
If you ever have any plans of transitioning into an International enterprise, then you’ll need the IEC registration certificate. You’ll be provided with a special code by the Directorate General of Foreign Trade, and this will allow you to conduct international imports and exports seamlessly without any hitch.
A Trade License
A trade license is a permit you pay for to be allowed to work in a given locality. The fees and the issuing authority vary from state to state. In some states, it is much easier to get it approved, while in others, you will be subjected to a more rigorous vetting process to ensure that everything you plan to launch is well within the limits of the state laws. The trade license is subject to annual renewal, and the amount increases if you change the status of your business from small to big.
Find a Niche
As previously mentioned, India has a lot of people; therefore, there are hundreds of thousands of furniture businesses, each clamoring for the attention of the public. To cut through all this and stand out, you’ll need something special, a product that no one else is making. This is what is called, carving out a niche. Make your business unique by focusing on a particular type of furniture then perfecting it so well that no one else can be able to copy the craft.
Minimize the Choices
One thing that customers hate is being overwhelmed with choices. It is good to have an impressive catalog, but having too much can work against you as it increases work for the customer. Limit the type of furniture you are dealing with. Rather than offering them tables, chairs, wardrobes, cabinets, and any other furniture under the sun, focus on one or two then avail as many furniture styles and designs as you can.
Conclusion
Setting up a sustainable furniture business anywhere is governed by regulations, and as it is evident, Indian businesses undergo the same. Clearing the regulatory hurdles is the easy part; the real exam begins when you officially launch the furniture shop. Getting clients may not be as easy as you may expect with competition pushing you out, but you’ll need to be flexible and adapt to situations as they unfold.
If you ever need an exhibition platform to boost your furniture business profile, get in touch with us, and create a package that perfectly suits your needs.
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