• Start Up - Setting up Dance studio

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I want to sell my homemade hair oils online.Planning to create a website and take online bookings and also distribute them to the retail shops . Also selling them through e commerce websites. Please help me with the legal processess involved
Asked 8 years ago in Business Law

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9 Answers

1. You should decide the form and structure of the proposed business. It can be a proprietorship, partnership, company, etc. The most viable mode is sole proprietorship which does not require registration. It can be started with a current account held by the sole proprietor.

2. You require physical location and license under Shops and Establishment Act. You can start from your rented property. VAT registration is also required.

3. For online business, you need to have your own website with unique domain name which needs to be registered and hosted on a server.

4. You should have a dedicated 24x7 customer helpline for redressal of grievances,

5. You need to have a RBI approved Payment Gateway,

6. You should have the services of a dedicated courier for delivery of products to customers,

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) take permission from society before starting dance studio

2) if society or landlord objects you cannot do so

3) obtain licence under shops and establishment act of your state

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

1) if you are planning to set up a website and sell your products online you have to decide whether you want to carry on as proprietary concern or firm or company

2) if it is company you have to follow the procedure for incorporation of company

3) if you want to carry on as partnership firm register your firm with registrar of firms

4) you would need licence under shops and establishment act as you are planning retail sales too

5) for accepting online payments you would need a payment gateway

6) Take VAT Registration. VAT is the mandatory when your turnover Exceed 5 lakhs but you have to take VAT Registration as it helps in selling online

7) Take Service Tax Registration have to pay service tax to government when your turnover exceed 10 lakh rupees

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

you can setup your business and sell product through online. start-up is in pipeline and concrete structure will come April this year. all the companies made within last three year can get benefit of start-up under the act.

you can contact start-up india pvt ltd, new delhi for more information. start-up means new business...it does not mean IT related business.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

1)sole proprietorship does not require registration

2) To open a Current account in the name of sole proprietary firm, RBI has issued certain guideline regarding KYC for such account.

Know your Customer (KYC) guidelines – accounts of proprietary concerns

A reference is invited to Para 2.4(a) of the Master Circular on KYC/AML/CFT/Obligation of banks under Prevention of Money laundering Act (PMLA), 2002 issued to banks vide DBOD.AML.BC.No.2/14.01.001/2009-10 dated July 1, 2009. It has been advised to banks that internal guidelines for customer identification procedure of legal entities may be framed by them based on their experience of dealing with such entities, normal bankers’ prudence and the legal requirements as per established practices. If the bank decides to accept such accounts in terms of the Customer Acceptance Policy, the bank should take reasonable measures to identify the beneficial owner(s) and verify his/her/their identity in a manner so that it is satisfied that it knows who the beneficial owner(s) is/are

2. For sake of clarity, in case of accounts of proprietorship concerns, it has been decided to lay down criteria for the customer identification procedure for account opening by proprietary concerns. Accordingly, apart from following the extant guidelines on customer identification procedure as applicable to the proprietor, banks / financial institutions should call for and verify the following documents before opening of accounts in the name of a proprietary concern:

Proof of the name, address and activity of the concern, like registration certificate (in the case of a registered concern),

Certificate/licence issued by the Municipal authorities under Shop & Establishment Act,

Sales and income tax returns,

CST/VAT certificate,

Certificate/registration document issued by Sales Tax/Service Tax/Professional Tax authorities,

Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc.

The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm’s income is reflected duly authenticated/ acknowledged by the Income Tax Authorities.

Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.

ii) Any two of the above documents would suffice. These documents should be in the name of the proprietary concern.

3) for only online sales you would not need registration under shops and establishment ac t

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

I want to sell my homemade hair oils online.Planning to create a website and take online bookings and also distribute them to the retail shops . Also selling them through e commerce websites. Please help me with the legal processes involved

When handcrafting a product, consistency can be a challenge. It’s important to work out all of the potential kinks before marketing a product, this includes packaging and shipping. Your packaging should compliment your product, protect it and be durable enough.

The legal process is that you get a licence for the business including CST or VAT etc, register it under shops and establishment act.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

i am planning to set up a dance studio in delhi where we will keep dance class yoga class and some recreation for kids . I will be buying a rented space for the same, Please suggest legal process involved

For all commercial activities permission from local civic authority is to be obtained and lice tax are to be paid as prescribed.

You can register it or not, it depends how you want to take it forward.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

The online business will be a beauty business for selling homemade hair oils. I will be the sole owner for the same so where do i get my proprietorship registered. Also do i need to register my products as well. In case am not planning to go for retail selling as of now will i still need registration under shop and establishment act.

You can register your shop with ROC under shops and establishment act. This will enable you to go for retail selling too in the future.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

Proprietorship is exempt from registration but if you want to register it then apply to the sub-registrar in your town. Registration under shops and establishment act is required if you are selling your products.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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