Startup

Requirements to set up Pet Toys and Accessories Stores

08 Nov, 2019

Pet animals are kept by animal lovers for their company primarily but they are also meant for entertainment and a means of protection. Pet animals include animals like dogs, cats, fish, parrots, tortoise, birds, guinea pigs and horses; dogs and cats being the favorite amongst pet owners. Pet toys include chew toys, balls and other fun toys, plush and rope toys and the squeezable toys; pet accessories include things like collars, leashes, beddings, dresses and grooming accessories.

The business model can be two types –

As a wholesaler that sells to different retailers or
As a retail shop selling to individual customers direct or online.

As a wholesaler one has the flexibility to design and manufacture the toys and accessories. This would require a good amount of investment through the second part – retailing the products can happen with the minimum initial investment^[1] and can be started from home without renting a space at first.

Pets are like children. They are lovable, cute and seek attention. Pet owners don’t mind spending or buying expensive products to pamper their pets. Hence, a business that has anything to do with pets always has a high probability of flourishing and earning good profits.

What are the Current Trends in the Pet Toys and Accessories Industry?

One good reason for the growth of the Indian pet industry is the fact that many young Indian couples are getting into delayed parenthood. And the other is the growing disposable income of young couples. The average disposable personal income in 2017 stood at 20312696.76 INR million and is projected to grow to 169623970 INR million in 2018. Additionally, urbanization and changing lifestyles are also contributing factors to the positive growth in the pet industry.

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The market size of the pet care industry in 2013 was 500 million dollars and raised to1220 million dollars in 2016. In between 2011-2015, the pet care industry grew at an amazing rate of of26.21% compound annual growth rate (CAGR) and is expected to grow at a CAGR of 17% or more between 2016-2021.

What are the Registrations Required to Start a Pet Toy and Accessory Business?

Starting pet toys and accessory store (offline and online) requires certain licenses and registrations that are mandatory by the law to be procured before starting the business.

Business Registration can be done in any of the following heads:-

Sole proprietorship
Partnership
Limited Liability Partnership
Private Limited company Registration
Public Limited company

Shops and Establishment Act registration is needed if an area is being leased and a shop is being opened to sell pet toys and accessories. The certificate is issued b the Chief Inspector and the certificate is required to be displayed at the shop at all times. This act regulates things pertaining to employees and workers such as working hours, start and close of office, annual leave, maternity leave, casual leave, and the resting duration for employees, closing days, national holidays and festivals and other such areas.
Trade license from the local municipal authorities or the local corporation or the state government. Each state has its own rules and regulations pertaining to obtaining a trade license. Therefore, it is important that the business owner clearly understands the jurisdiction where his shop or establishment is operating from. This is a renewal type of license and should be applied for within 30 days of starting the business.
Udyog Aadhaar MSME registration – since this business falls under the small and medium scale industry, to get registered the business owner needs to submit his Aadhaar details and bank details. Businesses with this registration enjoy certain government-sponsored schemes, easy loans, and other such benefits.
GST Registration under the Goods and services tax policy. This registration is mandatory for this business as the owner might sell across states and online mediums; also for a business that earns a minimum Rs. 20 lakh annually across the country except for 10 lakh for North Eastern states, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.
Finally, before starting the business, the owner should get his digital signature certificate (DSC) from a certifying agency. The DSC contains the users’ name, pin code, country, and email id.