Introduction to Boutique permission and license, Loan, cost to start in India: Initiating a boutique business can be one of the most feasible and amusing industry. People are more on a look out for new fashionable and stylish dresses now a days. Thus, running a boutique industry in India would be a money-making business. In fact, one need not have to capitalise much in this business. If you are forecasting to set a shop, well, primarily it can be developed with 2 to 4 lakhs. However, these days many ladies are engaged in selling clothes from their household. In this digital arena, you also have the option to sell clothes in via online, where massive visibility is there and more claim can be created along with amplified sales volume.
A guide to Boutique permission and license and cost to start
The vital element to initiate a boutique is the requirement for a bit of good reliable suppliers. You have to gather the contacts of suppliers from many points like directories, internet. Must has some soft calls to them and make firm connections for a healthier and effective boutique business.
Well to start with, you can have a shop on lease which falls within your budget. While choosing the area of the shop, you must choose the most nearby place for the clients. This will help in increase of the number of customer visiting your boutique.
Main supplies and furniture for the boutique shop
- Table chair for the reception purpose, and for placing the billing equipment, and stationery
- Clothing set up
- Hangers support
- Steam irons
- AC set up or fans, lighting
- Water filter
- Accessories stand
- Outdoor signage plate
- Fliers, promotional materials, business cards, covers/bags written with the boutique name
- Containers to stock items, like, accessories and other fashion supplies
- Floor mats and carpet
- Machine for alteration of garments
- A trial room having mirror and hooks to hang dresses
Raw Materials required to start a Boutique
- Fabric and linen
- Embroidery threads
- Glasses and mirrors
- Labels, tags, and packaging
Equipment for starting a Boutique
Following are list of equipment’s that is required for a boutique business:
- Stitching machinery/Sewing machine
- Embroidery machine
- Single needle lock stitching machine
- Over lock machine
- Shelving units
- Floor stands
- Cash Registers
- Computing software
- Store timings decal
- Window dressing materials
- Jewellery and accessory cases
- Item showcase structures and racks
- Office furniture
- POS systems
- Tagging supplies
- Packing supplies (shopping bags and gift boxes)
Adapt with the trends
Mostly keep your items fashionable and do a decent exploration before you stock the inventory. Do a market survey frequently and see what the taste of the local mass is and store items that would produce their interest. In case it is a humid or tropical climate throughout the year in your place, then one must choose cotton and linen fabrics for clothing instead of synthetic clothes. Keep the interior decoration of your shop pleasing and lively.
License and permission for a fashion Boutique in India
Each of these trading structures have their own requirements for registration but the only aspect which remains common to all the three forms is the Shop and Establishment license which must be provided by the inspector of that area.
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All business must be registered under the Shops and Establishments Act with the inspectorate of that place. This must be done in a month’s duration prior to setting up of the shop, followed by a statement that is to be issued to inspector.
The statement that you will issue to inspector will contains–
- Name of the employer
- The name &address of the business including the Mailing Address
- Category of business
- Number of employees employed
- Date on which the establishment commenced business
Documents For Registration Under This Act Are:
- Commercial Address Proof
- Identity Proof
- Pan Card
- Fee payment Challan
The processing fee for this license ranges from 125 rupees to 12,500 rupees, subject to employees count and the manpower you are employing for the shop set up.
A license will be promptly issued in case the details in the application are accepted.
Trade license and permission for a fashion Boutique
- An application for a trade license for a Style Boutique is made either through the online process or at Citizen’s service Bureaus (CSB).
- In the case of the application is submitted via internet- the applicant can submit the required documents at any of the CSB’s post to marking the document with the distinct recognition number assigned to his application on the internet.
- For obtaining a new Trade License from the nearby CSB– An application form must be submitted at the CSB, which is can be purchased ata cost of Rs.25/ at CSB.
- After submission of the application with the necessary documents, the operator will feed in your details to the PC.
- Processing fees must be paid, subsequent to which a G8 receipt is provided. This G8 receipt will contain the unique “Registration number” which must be remembered and cited for further processing.
- Subsequent to this a License Inspector will visit the place for inspection. Once the inspection and approval is accomplished, an email id will be sent notifying the capitalist of the same.
- Now the CSB must be advanced again and provide them with the “Registration number “. The machinist will quest for your details in the database by this number. If the details are present, the worker will print the Health Trade License and cut a G8 receipt.
- Pay the license charges and processing fee to the operator and take the signature of the Municipal Corporation officials in Trade license.
Documents required for license and permission for Boutique business
- Copy of sanction plan/ structure safety certificate/ completion certificate / from registered architect
- Site Plan
- Key Plan
- Water connection and sewer connection
- Indemnity Bond for Rs.100/-
- Affidavit for Rs.10/7
- Copy of partnership deed if any
License fee for fashion Boutique
A price of Rs.500 per application will be collected for processing fee and Rs.300/- will be charged as the license costs to license a shop.
In regards to the cost for license processing, Rs.250/- will be charged as the Processing at the time of approval of the application for the issue of a New License.
Service Tax Registration for Boutique business
The Indian government levies service tax in case the turnover is more than 9 lakhs. The application for such registration must be filled through ST-1 form which is to be submitted online after creating an account.
Cost to start a Boutique business in India
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For organizing a boutique successfully your budget should be like the following things:
- The amount given shop rent is 30,000 every month
- Costs involved in utilities is Rs. 30,000 per month
- Costs involved in purchasing equipment and machinery is Rs. 2 lakh
- Costs involved in getting the licensing for boutique is Rs. 50,000
- Costs involved in purchasing the furniture and fixture (interior decor purpose) is Rs. 3 lakhs
- Costs involved in purchasing the office equipment is Rs. 1 lakh
- Costs for employees salary is Rs. 2 lakh
- Costs involved in purchasing the raw materials is Rs. 2 lakh
- Costs involved in promotions or advertising is Rs. 10,000 per month
Loan and schemes to start a Boutique business
Running a boutique is very easy. You can take capital from family and friends to initiate the boutique. You can also avail a SME loan or a business loan. For a business loan it is mandatory to have IT returns for the past three years and also the bank account statements. It is important that you should not have a bad credit history while applying for a business loan from a bank. The rate of interest of a business loan is customarily high. You can avail several government schemes that help women capitalist set up small scale trades. These type of loans do not need any collateral for security. Since, the share that you would need is lesser, you can this amount effortlessly.
Tax records for Boutique
The boutique needs to apply for registration of VAT and registration of the service tax. It is mandatory for all the boutiques which have the income of Rs. 9 lakhs per annum. However any of the clothing business in India, requires the VAT registration which can be applied from the local VAT office.
Eligibility to get a Boutique business loan
After knowing all the details about the details like starting with the application process for applying a commercial loan. The following are required to process the loan-
- The applicant age should be 21 years of age
- The boutique’s monthly turnover should be at least ₹2,00,000
- The boutique business should have at least 12 months from the date of incorporation
Documents required for availing the loan
- Personal KYC – PAN Card
- Residential Address Proof (Any One)
- Rent Agreement
- Driving License
- Voter ID
- Ration Card
- Bank Statement from last 6 months of the Current Account on the Boutique name need to be submitted.
- Business KYC of any one of the partner.
- GST Registration Certificate
- Shops and Establishment Certificate
Advertising your boutique
A boutique is the safest and most profitable business in India to opt for, if you have a good artistic ideas and designing skills. Many of the newly established boutiques have converted their users into loyal customers by presenting their designs and pictures of clothes they got from our store on the Facebook page which increases the customers through online. If you regularly publish or post the content on Facebook page with attractive designs, then you can easily get leads for your boutique from online. Further you can also start an online boutique and delivering the product appropriately by owing a warehouse where you stock your clothes as per the demand in public. This would also be an affordable idea to your start a business or to expand it. You may also like the Quail Farming Business Plan, License for Profits.