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Starting a Fashion Business in India

eFiling Portal Team Thursday, December 22, 2015

Interested in fashion and trends? Here's how you can open a business of your dreams in India.

With the fashion industry growing more and more each year and customer demands increasing for fashionable clothing and various modes opening for the fashion business like malls and small stores, boutiques etc, the fashion industry is witnessing a hype like never before. The fashion industry is becoming organised like it has been never earlier. This article particularly discusses the modes of establishing a fashion industry in India

The fashion industry in India is one of the largest in the world. The business in fashion is growing more and more each day. For establishing a fashion business in India various modes can be adopted. One of the most famous modes is Fashion Designing. The name itself is self explanatory. The Fashion designers design clothes as per the demand of the client as well as contemporary inspiration.

On the other hand there are stylists who advice their customers about the kind of garment they should wear depending upon the occasion and their type of body and personality.

Other option is opening Fashion boutiques. These are small stores that sell their own unique line of clothing designed by any one or more than one fashion designers.

Online Fashion Retail business is also an option if you are interested in fashion business. With E-commerce dominating the market,more and more consumers are opting for buying clothes online. Though there are various well established online fashion websites like Myntra, Jabong etc there still exists plenty of opportunities for online fashion businesses. Also if you do not wish to open your own website, you can sell goods on already existing markets like Paytm etc.

If you wish to start a fashion business in India, you will first have to setup a bank account in the name of the business. The potential entrepreneur is free to establish the business as Proprietorship, Partnership, a Limited Liability Partnership or a Company.

Regarding the accumulation of funds for any kind of business, it can be seen in the market scenario that most of the funds come from the promoters and personal sources. The fashion business is in the same position as most of the fashion businesses are funded by the promoters. However, if the business is being established at a large scale and a big amount of investments is required, one can always opt for a bank loan. The Private equity funding or angel funding is another option of acquiring funds for Fashion Business.

Certain kinds of fashion businesses like styling and fashion designing do not need VAT registration. Even Service tax registration is required only for those who provide taxable services exceeding Rs.9 lakhs per year.

However people selling cloths in India require VAT registration, that can be obtained from the local sales tax office. It must be noted that un-stitched garments are kept free from VAT registration.

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