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Legal Registrations/Compliance Required to Spectacle Frames Manufacturing Business

Spectacle Frames Manufacturing Business

In a country like India where there are more than 132.42 crore people living, there would be millions of people who have eye-related problems and who need to wear spectacles daily to conduct their daily activities.  Then there are aging people who need to wear the reading glasses; wear spectacles after their cataract operations; vision impairment issues. All this indicates that there would always be demand for spectacles in the market. In this article, we will discuss Spectacle Frames Manufacturing Business and its Compliances in India.

The urban market in the recent years, of course, has seen people shifting to expensive, designer and stylized frames and eye-wear. The market is evolving too with many new types of machinery and innovative techniques being discovered to help create more spectacular and sophisticated eyewear for the consumers. Most of the branded eyewear spectacles in India today are unisex. Also, the fact that people in urban areas do not mind spending a good amount of money on branded frames helps the overall industry.

What is the Market Trend for the Manufacturing of Spectacles Frames in India at Present?

Spectacle Frames Manufacturing sells not only at showrooms now, but they also sell at online websites too. There are also some good brands that make amazing frames for the Indian market. This does not mean that local or new start-up companies cannot flourish in this business because there exists a big gap between demand and supply in the market today.

Indian market is growing at a rate of 30% CAGR whereas the global eyewear industry stands at 20% CAGR.

The reason behind the high rate of growth in the country is because of greater disposable income with Indian households, growing awareness amongst consumers, more and more people are having eye related problems and eyewear has now become more a fashion and lifestyle statement.

The Indian optical market was valued at Rs. 8400crore approximately in 2016 and it is estimated to touch Rs. 12600 crore very soon. Of this, about 80% of the value is for the Spectacle Frames Manufacturing market. The organized eyewear market is growing at 15% CAGR annually.

What are the Licenses and Registrations required Setting up a Spectacle Frames Making Business in the Country?       

1. No form of business entity can conduct business in the Indian terrain without a legal set up. One can do so in the form of Partnership firm, LLP Registration, Company Registration
2. Trade License that needs to be obtained from the local municipal corporation. This license is required to permit the entity to conduct business in a particular region. The license also is a guarantee that the organization is not going to indulge in any form of business activity that can cause health hazards and a nuisance to the residents of the region. Different states have different rules pertaining to fees for a trade
3. Udyog Aadhaar MSME certification – this certification can be applied for from online government portal. Udyog Aadhaar is offered by the Ministry of MSME that works to help small enterprises grow their business. In doing so, there are certain benefits that companies get to enjoy when they get their Udyog Aadhaar. Some of the benefits are – fast resolution of disputes; collateral free loan from bank; waiving off of registration fees and stamp duty; credit ratings; subsidy on NSIC performance; participation in international trade fairs; reduced rate of interest from banks; exemptions when applying for government tenders; concession on electricity bills and many more such benefits.
4. Registration under GST – the business entity can apply for GST online. This is not mandatory for companies that earn less than Rs. 20 lakh annually but it is still a good idea to get the registration done at the onset only. The documents required for this are PAN of the applicant, Aadhaar card, incorporation certificate, Id and address proof of directors, address proof of the business; bank account statement; digital signature and letter of authorization.
5. No objection certificate from the local Pollution control board
6. Trade License from the area Chief Inspectorate of Factories
7. ISO Certification as a guarantee that the product is quality-driven and follows international standards
8. Import-export code from the Directorate General of Foreign Trade^[1] if the entity plans to export the spectacles abroad.