Starting a magazine business

Magazine Registration in India

Starting a business of publishing magazine is one of the emerging businesses these days. But, a aspiring entrepreneur looking at starting the business of publication of magazines needs to understand the norms and procedures as prescribed by laws in India. After deciding the title/ name of the magazine and registering the business entity, you need to register the magazine that you propose to publish.

There are certain steps to be followed to register magazine:

·         Approach the Regional Magistrate court.

·         Prepare the application in the format as prescribed

·         Obtain R. Dis Number allotted by the magistrate court

·         Applying to Registrar of Newspapers for India (RNI), Delhi office for name availability through the magistrate court

·         It would take about 90 days of time for the RNI, Delhi office to approve the name as proposed.

·         Once the name is approved by Delhi office, then approach the magistrate court to get a date allotted for hearing (date can be allotted anytime between 1 to 4 months from the date of request)

·         Printer, Publisher & Editor are required to appear before the magistrate for taking oath.

·         Following Documents must be produced during the time of appearance;

o   Declaration copy which has to be filled by Printer, Publisher & Editor and to produce 3 copies each.

o    Address & Id proof of the Printer, Publisher & Editor.

o   Printing Press License copy of the Printer.

·         After this is done, there will be an approval to this effect from the Magistrate court.

·         Then, the magazine can be published.

·         The copies of the magazines have to be submitted to the RNI, Regional office for the final approval.

·         They will evaluate whether the magazine meets the criteria specified in the declaration.

·         Once they are satisfied, they will issue a RNI certificate.

·         Both the R. Dis Number and RNI Number have to be mentioned on each copy of the magazine.

It takes around 45 working days to 90 working days after applying. Generally, consultants charge Rs. 20, 000/- to Rs. 50, 000/- for the professional fees to register the magazine.

Special Economic Zones in India

Special Economic Zones in India

An SEZ i.e. Special Economic Zone is a geographical area that has liberal economic laws than the general economic laws. It helps gain tax and other business incentives which in turn attracts foreign investment and build entrepreneurship. An SEZ is a trade capacity development tool, with the goal to promote rapid economic growth by using tax and business incentives to attract foreign investment and technology. Since, India offers great incentives by investing in SEZ; therefore, it attracts foreign exchange and perhaps, boosts economic growth, exports and employment in India. The Ministry of Commerce and Industry lays down the regulations that govern the setting up and administering of the SEZs. The policy framework for SEZs has been enacted in the SEZ Act and the supporting procedures are laid down in SEZ Rules.

The SEZs Rules provide for the procedures for setting up SEZ and for single window clearance on matters relating to central as well as state governments. The expected SEZ investments are in sectors like IT, Pharma, Bio-technology, Textiles, Petro-chemicals, Auto-components, etc. The SEZ Rules provides the simplification of procedures for development, operation, and maintenance of the Special Economic Zones and for setting up and conducting business in SEZs. This includes simplified compliance procedures and documentation with an emphasis on self-certification; single window clearance for setting up of an SEZ, setting up a unit in SEZs and clearance on matters relating to Central as well as State Governments; no requirement for providing bank guarantees; contract manufacturing for foreign principals with option to obtain sub-contracting permission at the initial approval stage; and Import-Export of all items through personal baggage.

The SEZ policy was introduced in India in April 2000, as a part of the Export-Import (“EXIM”) policy of India. Units were allowed be set up in SEZ for manufacture of goods and rendering of services to provide an internationally competitive and hassle free environment for exports. Sales in the Domestic Tariff Area by SEZ units are subject to payment of full Custom Duty and as per import policy in force. Further Offshore banking units are being allowed to be set up in the SEZs.

The minimum requirements to set up SEZ in India are as follows;

1.    Any private/public/joint sector or State Government or its agencies can set up Special Economic Zone (SEZ).

2.    The minimum size of the Special Economic Zone shall not be less than 1000 hectares. Minimum area requirement shall, however, not be applicable to product specific and port/airport based SEZ. This measure is expected to promote self-contained areas supported by world-class infrastructure oriented towards export production.

3.    The application must accompanied along with Project Report containing financial details, area from port, proposed business and details of foreign equity.

Obligations of SEZ Units, if approved

1.    SEZ Units needs to provide periodic reports to the development Commissioner and Zone Customs

2.    SEZ Units are also required to furnish the financial accounts periodically along with clearly mentioning the value of exports and imports

3.    SEZ Units are also required to get positive Net Foreign exchange for a period of 5 years from commencement of production.

Starting online business in India

Starting Online Business in India

India's Information Technology (IT) and information technology enabled services (ITeS) segments are aligned in a way that the growth in one avenue has ripple effects on another. The IT & ITeS industry, as a whole, is the mainstay of Indian technology sector as it has driven growth of the economy in terms of employment, revenue generation, standards of living etc and has played a major part in placing the country on the global canvas areas.

In the recent times, it has been seen that emergence of internet retailing and e commerce is driving the growth of number of online shoppers resulting in more and more number of internet retail companies being attracted towards Indian Markets. There are about 17 million online shoppers in India and the number is projected to grow over three times in the years to come.

The online shopping trend is not just restricted to mass market shopping, but also extends to luxury goods, the fastest growing segment. However, the online market still continues to be dominated by shoppers looking for premium, affordable products at the cheapest prices.

The digitally-enabled environment is fast changing consumer shopping habits.

Starting the Online Store-----

·         Find a niche market and products that can make a profit selling online

·         Identify the gap in the market

·         Obtain the Domain Name

·         Find genuine wholesale vendors

·         Design the website as attractive as you can

·         Obtain Payment Gateway at your website

·         Market your store through Multiple traffic sources and get customers in the door without spending a dime

·         Convince your customers to buy once they land at your website

·         Sell goods online and earn huge profit

Legal Steps to start the online Business:

•       List out the different Business Entities i.e. Company (Private or Public Limited)/ LLP

•       Compare and Choose the Best Suitable Business Entity

•       Incorporate and register your Business Entity with the Registrar

•       Obtain Income Tax Registrations such as PAN, TAN, Service Tax, and Sales Tax.

•       Make sure that you apply for the Sales Tax Number if in case you are selling goods online

•       Hire Legal consultant to draft legal agreements, website policy and terms & conditions

Other things to be kept in mind;

•  Arrange a web designer for designing your web portal to sell goods or else logon to www.indiagetonline.com and get free domain name, hosting, and templates. But, it is strongly recommended to get a web designer hired for designing the website because your business’s demand is based on online. So, the website should be very attractive and understandable.

•       Tie up with the vendors/ distributors for sourcing the goods

•        Tie up with the courier agencies

•       Employ the Delivery staff to deliver goods

•       Protect your Brand name by registering the Trademark, Patents, etc.

What is driving e-commerce adoption on small towns of  India?                     ·                            Rising Living Standards ·                            Increased awareness ·                           Greater Wireless Internet Access ·                             Lack of goods offline channels ·                             Improving online availability ·                              New payment options ·                             Cash on delivery as payment option

 

 Demographics of Internet Market

•       Total Internet users with over 121 million as of December 2011

•       Much of the tech savvy population is now buying online though the numbers lag far behind neighbor China

•       Almost 75% of India’s Internet users are under the age of 34

•       Large number of mobile users access data services

•       Women are increasingly important presence online- 20-22% of India’s Internet Users are Women

•       Top 10 products bought online are Books, Electronic goods, Railway tickets, accessories, Apparel, Gifts, Computer, Airline, Music, Movies

Source: Nasscom, Wikipedia

Doing Business in India

How to start Business in India

To start own business, an entrepreneur have many questions in his mind like which country to choose, which sector to choose, how liberal laws are in a particular country, what will be the steps, etc.

In India, starting business involves various steps as illustrated below;

1.    Choose the right location of the business

Location is a very important decision in starting business. This decision needs to be taken taking into consideration various factors such as nature of business, manufacturing/ trading of goods, nature of goods, labor requirements, raw material availability, Government policies and subsidies.  It’s important to look into the state policies before choosing the location because each state in India is encouraging sector wise and giving subsidies to the entrepreneur.

2.    Choose the right business entity

You can choose from Company, Partnership, Limited Liability Partnership, or Sole Proprietorship. And for a foreign investor, other options are also available like opening a Liaison Office, Representative Office, Project Office, Branch Office, Wholly owned Subsidiary Company, or Joint Venture Company.

3.    Check FDI limits

India’s foreign trade policy has been formulated to regulate FDI in India. A foreign entrepreneur or foreign company proposing to invest in India need to check whether the investment is allowed under automatic route or through prior approval of government

4.     Obtain Income Tax Numbers

After the business entity gets formed, RBI/ FIPB Approval is obtained (only when the investment does not fall under automatic route), the next step is to obtain PAN (Permanent Account Number)and TAN (Tax Deduction and Collection Account Number) from Income Tax department.

There are other specific tax numbers which are required depending upon the nature of business like for a Service Industry, you need to obtain the Service Tax number. And, if you are selling goods, then, you need to obtain VAT (Value Added Tax) number and CST (Central Sales Tax). Excise Number, if you are manufacturing goods.

5.    Filing RBI Compliances

This is post incorporation filing formalities after remittance of capital by foreign investor from overseas to India on issue of shares.

6.    Obtain Business Licenses/ Permits

Also, it is necessary to register business under Shops & Establishment Act. Certain other labor registrations are also necessary for the welfare of employees like registration under Provident Fund Scheme and Employee State Insurance Scheme.

Apart from these licenses, there are some other licenses which are business specific.

Point number 1 to point number 4 is mandatory steps to follow to start business in India.

So, Start your new business now!!