How to Register your Diamond Trading Business in India?
Diamonds are used widely, from fashion jewelry to medical equipment A diamond dealer gets their supply by contacting diamond mine owners and further selling these diamonds to retailers or jewelers You should take the risk factor into account in addition to having extensive knowledge of the diamond market As diamond dealers, traders, and brokers have substantial stakes, you must collaborate with reliable people.
It is significant to note that starting a diamond trading company requires a workable startup budget, as well as the capacity to network with and market to high profile clients of the society. If you truly want your diamond trading business to succeed, you must be ready to target this group of people, who can purchase this luxurious commodity.
DoYou Wish To StartADiamond Trading Business?
To register your diamond trading business in India, you would be needing the following documents and licenses:
1. RegisterYour Company With MCA:
This can be started on the MCA portal itself, followed by arranging the required paperwork and getting the same verified by RoC along with the stamp duty, etc. After completing all the necessary steps, you can obtain Certificate of Incorporation from RoC
To register your business hassle free, click here and let Legalite handle the rest
2. PANAnd TAN Number:
PAN is assigned to all the taxpayers in India as an identification number PAN number is a single number which is an electronic system and has all the tax related information for a company or for a person
Assuming you already have a PAN Number, below are some steps to register for yourTAN Number
TAN is required by all individuals because without it Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) returns are not accepted by TIN facilitation centers Banks do not accept the challans for TDS/TCS payments ifTAN is not quoted.
Applicants can apply for a new TAN either by applying online or by visiting any of the TIN facilitation centers of Protean eGovTechnologies Limited To apply online for a newTAN, applicants can visit NSDL Offline, the application form i e Form 49B can be obtained from any of the nearest TIN facilitation centers
3. BankAccount:
Obtain a Bank account specifically for your company where your transactions take place It helps with liability and identity protection as follows:
If your business should endure a lawsuit and your personal finances are mingled in with your business finances, a case could be made that they are not, in fact, separate entities Business bank accounts can also help keep your personal identity safe
4. Trade License:
A trade licence is a certificate that authorises the applicant (the individual looking to start a business) to start a specific trade or business in a specific place It makes sure that all safety regulations set forth by the State Municipal Corporation are followed when conducting business or engaging in commerce It is distributed by the municipal corporation's licencing division in a number of areas, including industries, engineering, health, etc
1 The following criteria must be met in order to apply for a trade licence:
2 The candidate needs to be older than 18 years old
3. There shouldn't be any criminal history on the candidate.
4. The business should be legally permissible
Documents required for applying for Trade license:
How toApply?
You can apply online or offline for the trade license through the local municipal corporation
Trade License Fees
The trade license fees vary from state to state since it is issued by the government agencies (Municipals) of the respective state The license fees are determined based on the rules and regulations prevailing in that respective state In some states, trade license fees are charged on an annual basis Whereas, in other states, it is calculated based on the percentage of annual business turnover
5. GST:
GST Registration process is online based and must be carried out on the government website gst.gov.in. Every dealer whose annual turnover exceeds Rs 20 lakh (Rs 40 lakh or Rs 10 lakh, as may vary depending upon state and kind of supplies) has to register for GST
To register for GSTwith Legalite click here
6. Export and Import License:
According to DGFT Notification No. 21/2002-07, no supply of diamonds may be imported or exported unless a Kimberley Process Certificate is also included, as required by the steps laid out by the Gem and Jewelry Export Promotion Council (GJEPC). Visit the DGFT website if you want to obtain an export and import license. Register for an account at IEC Profile Management. Fill out the application form (ANF 2A format) on the DGFT website to request for the IEC option .
Click here toApply for Export and Import code with Legalite.
7. IGI or GJEPC:
Additionally, you might also register your firm with the GJEPC (Gem & Jewelry Export Promotion Council) or IGI (International Gemological Institute) for better brand value and customer satisfaction
GJEPC: To promote the export of the Indian Gem and Jewelry and its products, the Ministry of Commerce; the Government of India established the Gem and Jewelry Export Promotion Council (GJEPC) GJEPC
membership fosters enriching professional relationships It provides opportunities to grow and enhance your business via planned interactions with the global gems and jewelry community
IGI: The International Gemological Institute is the largest independent gem lab in the world. It is headquartered in the heart of the diamond trade, Antwerp, where De Beers also has major operations The company also has offices in several diamond centers worldwide, such as New York, New Delhi, Surat, Hong Kong, Dubai, Shanghai, and Tel Aviv, among others
Here are the links for the websites and details about registration and eligibility for the same:
1 IGI: https://www igi org/
2 GJEPC: https://gjepc org/apply for membership php
8. Trademark Registration:
An individual can file for the registration of his trademark himself The application can be filed online through the e filing gateway available at the official website or in writing with the Indian Trademark Office (TMO)
Advantages of Trademark registration include:
● Exclusive rights to use the trademark
● The registered trademark owns the brand value
● Securing business goodwill
● Provides its owners with a legal protection
● Ease of making advertisements and strong public relations
The whole process of brand name registration takes anywhere around 6-12 months. The brand name accepted for trademark registration will remain valid for an unlimited period of time subject to time renewal of the registered trademark. A registered trademark application needs to be maintained by renewing the same every ten years.
Click here toApply for quickTrademark registration with Legalite
9. ISO Certificate:
The International Organization for Standardization is referred to as ISO It is an independent organization that sets standards for the effectiveness, safety, and caliber of goods and services offered by companies. Delivering high-quality goods and services is crucial in the current corporate environment of fiercer competition in order to remain competitive The overall effectiveness of the business and your company's credibility both benefit from ISO certification.
Choosing the type of ISO Certification
First of all, you need to choose the type of ISO certification required for your business. There are various types of ISO certification available such as :
● ISO 9001:2008 – Quality Management
● ISO 14001 – Environmental Management
● ISO 27001 – Information security Management
● ISO 22008 – Food Safety Management and so on.
Here, ISO 9001:2008 is required for a DiamondTrading Business.
Click here toApply for quick ISO registration with Legalite.
10. Jewel License:
According to the Shops and Establishments Act, every business must register with the local Inspector. Following completion of this within one month of the business' establishment, an inspector must receive a statement
Your letter to the inspector will include the following information: 1 Name of the business
The business's name and address, including its postal address,
Depending on the number of employees and labor you have, the processing charge for this license often ranges from 125 to 12,500 rupees A jewelry store license shall be issued immediately if all the details in the application are accepted.
Conclusion
After learning everything there is to know about how to launch a diamond business, we would like to emphasize that this business should never serve as a hobby. Certainly, there are opportunities for high profit margins, but to get there, you must plunge into the depths of the industry The diamond trading business, which relies on your marketing abilities and trust in the marketplace, is where your expertise and relationships have the largest influence.
We hope with this article we could educate our readers and help them in their entrepreneurial journey. It would be great if you could share your valuable feedback We also recommend surfing our website wwwlegalite in to know more about various Corporate Solutions offered by Legalite