Suggestion for starting retail kids wear and accessories shop in Kolkata

[RAJIB S]

Hi buddies,

This is Rajib from Kolkata planning to open a retail kids wear and accessories shop in Kolkata.
I have found that there is a good demand of kid products in Kolkata market.

As I am a novice to this industry, I am planning to expand slowly.Hence, initial plan is hire a shop,then doing interior decorations and start selling garments,toys,shoes and accessories. Initial investment target shall be
5-6Lcs which covers rent+deposit+decoration and investment on products.

Primarily to run a retail shop I need to know-
1.What are the legal procedure for registrations for opening a shop in Kolkata?
2.How to charge VAT/Service tax to customers?Whether to include in selling price or shall charge extra?
3.Can I sell products buying from manufacturers/distributors directly or, shall I contact manufacturing houses to manufacture garments under my tag?Kindly advise in detail.
4.How many people needs to be hired?

My Second motive is to sell products by participating in National and International Exhibitions.
1.What are registrations required/paperworks to be done?
2.What are permissions to be obtained?

Your advises shall be highly appreciated.

 

[Suresh Babu]

Dear Rajib, Good to hear that you want to start a new business in Kolkata.
Just for guidance before starting any business you should have work for the same atleast 6months to one year to know the depth of the business . just you have money and want to start simple is keeping your hard earned money on road wothout any benefit. you will depend on so many people for advices and to work on. may be there is some people honest and some not. My best suggestion is keep your money in fixed deposit and start working in any retail shop and observe all the procedures how they are following. From where the stock comes from, how to keep record of stock, how much profit you want. How much your turnover to pay commercial taxes. If your turnover above say 5 lakhs you have to show all the records for tax payment. Imported garments have special tax system. There may be so many hidden issues in the business. Customer satisfaction and self satisfaction are very prime important. So before setting up any business best involve in it as a servent and learn the basics and finally your full time accountability to the business.

Wish you best of luck.

Suresh

 

[adsatinder]

@sumitro_d can help you in case of engaging a shop etc.


If you have not done any business,
it takes lot of hit n try for learning a trade.
Better learn it first as your investment is not much.
You can open a small shop at a small area only.
This will not get you anywhere.
If you start wholesale model, that will be better for taking part in exhibitions etc.
You need to apply for TIN No. for doing a business above 8-10 Lakhs per year.

You have to understand which category/ segment you want to cater,
means it will be for economical / middle class or upper class etc.
It will be Party Wear / School wear or formal wear etc.
It can be under garments also.
There are many wholesalers who will supply you product that you want to sell.

Some small manufacturers can give you desired products in your name.

1.
You need to register under shop act at local munciple office.
Apply TIN No. at tax department with help of a CA / Accountant only. You will need warranty of a registered dealer to support your application for TIN No.

2.
VAT should be included in selling price ideally.

3.
You can take few products from manufacturer, few from wholesaler, few from suppliers etc.

4.
You need 2-3 persons at least for a small shop.


For selling in exhibitions you simply need to contact organizers of events.
Each one has own terms & conditions.
They have different costs to rent a shop / area temporarily.
You need TIN No for this also if you do not have for a shop.


I have not much idea about this line.

 

[Suresh Babu]

Dont invest all your money, keep bank finance and ratio of 20:80, 2o % from your pocket and remaining from bank finance. Then on your shoulder there is 100% responsibility to lead the business. Make all your expenses accountability otherwise difficult to ensure there is profit or loss. Check competitions from the market and make friendly or loyal to customers for good relations in the business.

 

[RAJIB S]

Thanks for all your advises.

Please keep posted further advises.

As I am doing full time job in Kolkata, hence I will take all initiatives to start our shop.I am

My father shall be the key person handling all activities along with 1/2 assistants.

Mr. Suresh can you kindly guide me when is the perfect time to apply for bank loans ?

Rajib.

 

[Suresh Babu]

Dear Rajib,
From which bank you have good relationship with manager and staff approch them and inform about your idea for opening shop and need financial asistance. Prepare a good project highlighting the key points of your financial status, PAN card number, income tax returns etc. Alwasys keep your estimated budget at 20 to 30% higher to ger your actual funding. Consult any local finacial experts in your area to make your project success. Before that approach whole sale garment sellers fit for your budget. There is always huge demand for kids clothes and toys as loving and caring parents cannot stop buying expensive items for their kids specially people like me where myself finds in malls with kids and emptyin pockets.. Any good ideas from forum members please welcome.

I think for those who supply the garments you dont need to pay full the amount immediately as you have grace period of one month or 15 days.