How to Start a Leather Manufacturing Company 

Beginning a leather products manufacturing company in India can prove to be very profitable due to the following reasons; However, to effectively venture into this kind of business, there are legal requirements, licenses, permits, and certificates that are needed for legal operation. This blog post will act as a step-by-step guide on how to start a leather products manufacturing company in India with full legal compliance.

 

Table of contents
 

• Understanding Leather Manufacturing Company

• Conduct Market Research

• Develop a business plan

• Choose a Legal Structure

• Regulatory Requirements

• Finding Venture for funding

• Designing and Manufacturing Your Product

• Invest in quality Equipment and Facilities

• Building your brand and marketing

• Exporting your product

• Conclusion 

• Frequently Asked Questions 

 

Understanding Leather Manufacturing Company

 

Indian leather production sector is a major economic sector; it provides employment opportunities to around 4.42 million people and women's workforce constitutes 30% of the total strength. It is the second largest producer of leather in the world holding 13% of worldwide production and is the largest exporter of leather garments and footwear. The major production centers are located in the states of Tamil Nadu, Uttar Pradesh, and West Bengal. The production industry enjoys the advantages of growth through the easy availability of raw materials, a skilled workforce, and government-launched schemes like the  Indian Footwear and Leather Development Programme that is in process to improve the infrastructural framework and exporting segment that makes India ahead in this market of leather products.

 

Conduct Market research 

 

Before entering into Leather products manufacturing, understanding and planning are crucial. Many companies fail to achieve their goals due to a lack of market research, so before starting the company, recognize the market, and find out your niche. Once you have researched and planned your business, it will help you overcome obstacles and run your company smoothly.

 

Develop a business plan

 

A business plan is an important tool for managing your startup and it has a role in sourcing funding. Your business plan should include:

Executive Summary: In summary state the business idea, the business objectives, and the business goals.

Market Analysis: Give an analysis of your target market, competition, and industries that prevail in the market.

Operational Plan: Explain all aspects of the business such as human resources, hardware, and materials utilized in the process.

Financial Projections: Be sure to attach projections of costs for starting the business, expected earnings, and the ability to turn profitable.

 

Choose a Legal Structure

 

Choose the right business formation for your leather products manufacturing company you can go for sole trader, partnership, LLP, private limited company, etc. It is worthy of note, therefore, that you desist from using this technique due to factors relating to liability, tax, and other assessments that are compulsory to perform. It is advisable to seek advice from professional lawyers so as to make a proper decision.

 

Regulatory Requirements

 

In order to commence the leather products manufacturing company in India, you need to acquire different licenses and permits from different government agencies. These include:

Registration and Incorporation

However, in order to commence any manufacturing operations, you are required to incorporate your business with reference to the rules prescribed by the Ministry of Corporate Affairs. This entails registering your company under the Companies Act of 2013 a legal process that gives your business legal personality.

GST Registration

GST registration is mandatory for any business organization that wishes to collect taxes on behalf of the government and avail of the credit of tax paid on purchase inputs. Technically, you cannot legally sell any products or services, and that means that you cannot legally operate a business if you do not register for GST.

Trade License

A trade license is a legal permit that gives your company the authority to conduct business in a particular region. It guarantees that your business conforms to all the measures in safety standards prescribed by the State Municipal Corporation. 

MSME Registration

As a result of signing up for your company as a Micro, Small, or Medium Enterprise (MSME), the government provides the programs that enable the development of those particular sectors. It’s also useful for small-scale firms Most of the registration processes benefit MSME.

Trademark Registration

Trademarking your business name further assists you in safeguarding your business from market imitation of your products that are associated with a trademarked brand. Trademark registration is therefore important in case one wants to protect his/her brand name.

ISI Certification

The ISI certification is provided by the Bureau of Indian Standards (BIS) for products that they deem to be of good quality. Though it is not a prerequisite for every leather product, ISI certification will add value to your products in the eyes of the consumer.

Environmental Clearances

Leather processing is an effluent generating industry, you will have to take necessary ‘no objection certificates’ from CPCB and SPCB. Some of them are consent to establish (CTE) permits and consent to operate (CTO) permits.

It’s really the professional utilities that can help you with your business registration, licenses, and permits with our professional assistance, the process can be made easier and smoother for your business and the latter are well aware of the regulations required for such licenses and clearances.

 

Finding Venture for funding

 

Starting a Leather Products manufacturing business requires a significant amount of capital investment. This is particularly so if the operation is large, you will have to secure funding from investors or other financial institutions. The available funding for this business includes venture capital funding, bank funding, and private equity and, indeed, it is very crucial to prepare a written business plan and forecast the operating expense and revenue projections to be made in order to attract investors.

 

Designing and Manufacturing Your Products

 

A good and well-established product portfolio is vital when it comes to the success of a leather product business. Spent as much time as possible on the creation of new and attractive products that would meet the client’s demand. Take account of the quality you want the products to have, the style of the products, and the price range believed to be suitable.

As for the production of your products, you can employ your own production lines or cooperate with third-party producers. If you decide to go for outsourcing; it is important that the manufacturer has the capabilities, tools, and system for quality assurance and quality checkpoints.

 

Building your brand and Marketing

 

Brand management is an important factor that helps to establish a brand and its offerings as separate from competitors and to guarantee consumers’ preference. Create the company’s logo, layout of the site, and social media pages that will represent your brand.

To promote your products, you can use various marketing channels such as:

• Social media platforms

• A few of the platform names include Amazon and Flipkart.

• Attendance at trade fairs and exhibitions

• Marketing promotions with social media personalities such as influencers and bloggers

Also, it is advisable to register your company’s name and logo as trademarks to avoid cases of brand identity infringement.

 

Exporting Your Products

 

If you aim to export products that are made from leather, then you will be bound by a number of other legal standards. These include:

• Obtain the IEC code from the DGFT

• Registering with the CLE

• Comply with international quality and safety standards

• Other factors that are also essential include acquiring other important certifications including ISO, REACH, and OEKO-TEX.

If you want to learn more about export basics, to make exports easier for you, you can become a member of Amazon Global Selling which offers tools and services for reaching customers from all over the world.

 

Conclusion 

 

Leather products manufacturing business is not a small venture that one can embark on a whim when in India and this is because there are so many legal formalities that should be met before one can start the business. According to the guidelines provided in this blog post as well as getting professional advice on the process, one can embark on the process of establishing the business and setting it for success in the future. Do not forget in its right perspective your leather goods is equally capable of making and expanding a robust business house in India and contributing to the heritage and the global market share in leather products.