Overview

Jewellery is a popular item that can be used for personal use or as a gift. When you have a natural talent for making jewellery, you can use a variety of techniques to create specific designs. This industry is highly competitive. Starting your own jewellery business may appear daunting, but there are several advantages to doing so.

Benefits of Starting a Jewellery Business

The following are some of the benefits of starting a jewellery business:

Firstly, doing wholesale-price transactions will dramatically lower the cost of products and materials, mainly if you buy in huge volumes
As an entrepreneur, you'll have better exposure to services like trade shows and exhibitions
You can be introduced to and motivated by the art of many several artists in the course of making and distributing the jewellery
Finally, a proper jewellery business plan will help you get more funds and exceptional reach in no time.

Checklist Tasks for Starting a Jewellery Business

Once you've decided on your jewellery business ideas, you must register the company. Jewellery companies typically have annual revenues in excess of ₹1 crore. This also suggested that jewellery businesses incorporate as a private limited company to benefit from limited liability rights, simple transferability, and other benefits. By forming a private limited corporation for the jewellery industry, it will effectively collect funds in the form of equity or debt.

Import Export Code

To import products into India, you would need an Import Export Code or IE Code. Nevertheless, before bringing any gold into India, jewellers have to be aware of all the regulations.

Bank Account for Your Jewellery Business

One must open a separate bank account for your jewellery business and manage your financial reports separately. This enables banks and financial institutions to obtain cash credit or loans.

Before you can get your sales tax registration, you must first open a bank account with a private or public sector bank. The business bank statement is a required document that must be filed with the sales tax department.

You can open a retail jewellery store as the owner of a partnership business, a private limited corporation, or an LLP. The industry structure is determined by the size of the company. You can also start as an owner or partnership company and then transition to a private limited company once market turnover demonstrates progress.

Tax Registration

The sale of gems and jewellery is subject to GST. As a result, all jewellery businesses must register for GST with their local state tax department. When a business obtains GST registration, it is possible to avoid penalties and collect GST tax.

Permanent Account Number or PAN

Since the sale of jewellery in India is regulated by the tax department the PAN number is a necessity to start a business.

BIS License for Selling Hallmark Jewellery

In many countries, hallmarking is the precise assessment and formal documentation of the roughly proportional amount used to ensure the quality or fineness of precious metal in jewellery. Precious metal is used in the manufacture of jewellery. As a result, Hallmark is an official mark. The Hallmarking Scheme's main goal is to protect the public from substandard, adulterated goods and to require manufacturers to maintain defined levels of fineness and purity.

A jeweller who intends to sell hallmarked jewellery must obtain a BIS licence for the retail outlet in question. Each BIS licence allows a different store or distribution outlet to sell hallmark jewellery. To market signature jewellery, a company with multiple locations must obtain multiple BIS licences.

After obtaining the licence, the jeweller will abide by the terms and conditions outlined in the agreement. The certificate and fine proceedings could be cancelled if there are certain anomalies in the quality of precious metal (gold or silver) and the inability to meet the specified specifications.

Documents Required to Obtain a Corporate License

Under the BIS gold and silver hallmarking scheme, jewellers from each jewellery store can obtain a license to sell Hallmarked products. A business licence that protects all retail channels may be obtained by the owner of more than one jewellery store under the same management.

This industry has its own set of rules and regulations. There is also a provision for reducing the cost of business licences.

Information to be used in the submission of application

Self Authorised Copy of the Firm:

Registration with State authorities / License for trade
Certificate of incorporation issued by the registrar of corporations
Registered Partnership Deed if the business is a partnership or
A Chartered Accountant credential, if the company is a proprietorship business.

Authenticated Proof of Firm’s Premises(Less or Equal to 3 Months Old):

Registered with State Government / Trade Licenses And
Registration of VAT/ Sales Tax OR
Order for assessing Income Tax Returns And
Receipts of property tax
Insurance policy
Sale / Lease Deed agreement

Documents as an Identity Proof of Signatory on the Application:

Voter Identity card
Passport
Driving Licence
PAN card
Aadhar card
Photo credit card
Photo bank ATM card

The Additional Documents Needed for Submission With the Order Are as Follows:

Agreement on ₹100/- in the prescribed format, on a non-judicial stamp paper.
Location map of property from certain closest famous landmarks (in the illustration).

Why Vakilsearch

Vakilsearch is a group of experts who would help you navigate through the process of setting up a jewellery business. From getting a GST registration to trademarking your logo and setting up the documentation to set up a shop if necessary, our experts are well equipped with the necessary tools and experience to ease the process for you. In case of any queries support is available 24x7. Alternatively if you are missing any document you can contact us for guidance for the same.