Startup

How to Set up a Yoga Studio

India has slowly been awakening to the positive effects of yoga. With the western world accepting yoga as the best way to achieve mental and physical health, Indians too are embracing traditional health practices like yoga to attain wellness of the mind and body. There is an international Yoga Day too that is now celebrated every year on 21^st June to commemorate one of the oldest methods of leading a peaceful and healthy lifestyle. Opening a yoga studio in urban India surely has good money making potential considering the fact that the rising number of people want to attend yoga classes from teachers with relevant experience and knowledge.

Investing in a yoga studio involves lesser money compared to opening other beauty-oriented business because it does not involve buying expensive tools and products for use neither does it require any kind of machinery investment. The only cost that one needs to bear is the rent or the lease amount, doing up the interiors and employing manpower depending upon the space and class size.

What is the Market Dynamics in the Indian Yoga Industry?

The Indian wellness industry is believed to be growing at the rate of 15-17% CAGR annually with yoga and fitness studios covering about 40% of this market. The Indian wellness industry was worth INR 490 billion in 2015. As per a report generated by ASSOCHAM, there would be an increase in demand for yoga instructors to the tune of 30-35% in the next few years.

Government initiatives:

The government of India set up the Department of AYUSH (Ayurveda, Yoga, Unani, Naturopathy, Siddha, and Homeopathy) for the growth and development of the ancient Indian health and well-being systems. It also creates avenues for investment, education, research and training related to all segments of AYUSH. The Government also approves of 100% FDI^[1] in the AYUSH sector.

Public outlook:

There has been a change in the socio-economic outlook of the middle-class Indians too. The disposable has increased in urban India. Lots of small-scale yoga studios have opened up in various regions in the recent past with fresh and innovative ideas; this segment is poised for attractive growth. There has been a significant demand for yoga mats and yoga pants during the month of June coinciding with the international yoga day. Even new-age apartments and societies have started hiring the services of professional yoga instructors to conduct yoga sessions at the community centers and parks.

These are encouraging figures indicating the immense potential of this industry in India.

What are the Required Licenses and Registrations for Opening the Yoga studio?

1. Business can be set as a company, LLP or normal partnership firm. The ideal setup would be to go in for One Person Company Registration or the Limited Liability Partnership registration.
2. Obtain the Trade license from the licensing department of the municipal corporation in your area. This is an authorization from the government to run the business in the mentioned locality.
3. MSME Udyog Aadhaar registration that is mandatory for all micro, small and medium scale business.
4. Registration under the Goods and Services Tax. This can be done online from the government website. Though it has mandatory registration for companies earning the threshold revenues, it is prudent to have the proper documentation done at the onset itself, even if the studio is a small scale business unit and initial revenues expected are low compared to the threshold limit.
5. Professional Tax registration is required if the studio needs manpower or employees. As per the law, this state-level tax is a compulsory tax that needs to be paid by every staff member in the organization. It is the responsibility of the business owner to ensure that this tax is deducted from the salaries of his employees and have the collected payment deposited with the concerned government department.
6. The Employee State Insurance Corporation registration is mandatory if the yoga studio hires 10 or more staff members under the ESI Act 1948.
7. Registration under the Employee Provident Fund (EPF) that is meant for providing financial security to employees after retirement. It is a mandatory registration for the studio if it hires 20 or more staff members.