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In India, labeling is mandatory for pre-packaged goods intended for retail sale. A label printing business can easily help to meet this requirement by offering printing for packaging. Basically, it is a business that is engaged in producing custom adhesive labels, stickers and tags for product packaging, branding, shipping and inventory management.
To start a label printing company, you must choose an ideal location, complete basic, legal and regulatory requirements and have necessary machinery in place. In this blog post, we shall explain in detail how you can start a label printing business in India successfully.
Under the legal metrology rules, pre-packaged goods sold by weight, measure or number require labeling before they are sold in the market. These goods are packaged in the absence of consumers. Some popular examples are: Butter, Tea, Milk, Biscuit, Rice, Soft Drink, Detergent Powder, Shampoo, Floor cleaner, Etc.
The labels communicate a product’s manufacturer, maximum retail price (MRP), quantity, ingredients, usage instructions, potential hazards, date of manufacture, expiry date, etc. It helps the consumers to make a well-informed purchase decision.
Under the Legal Metrology (Packaged Commodities) Rules, 2011, all the pre-packaged commodities for retail sale must mandatorily mention the following details:
All the businesses engaged in manufacturing, packing, importing or selling pre-packaged commodities must adhere to this requirement to ensure legal compliance as well as consumer protection.
The requirements to start a label printing business in India are as follows:-
Choose a suitable area where you can run your business and print label for food packaging or other products’ packaging. The space must be enough to install printing machines, store raw materials and manage all the day-to-day operations.
It is ideal to choose an area that is specifically famous for label-printing among businesses. In such an area, you can get better business visibility. You can expect walk-in clients looking for label-printing.
Once you’ve chosen a suitable area, you must now choose the business structure. If you want to run an unregistered business, you can opt for a sole proprietorship model (where only one owner is required) or a partnership firm (where two partners are required).
However, in both cases, the business owners are personally liable for any debts incurred by the business. Additionally, obtaining loans can be difficult for unregistered businesses.
It is recommended that you register your business as a company under the Companies Act, 2013, or as a Limited Liability Partnership under the LLP Act, 2008. Such business structures provide limited liability protection to the owners and also make it easier to access funding and financial support.
GST registration is a mandatory requirement for businesses if their annual business turnover exceeds Rs. 40 lakhs for goods or Rs. 20 lakhs for services. You can apply for this registration online via the official GST portal. Make sure to obtain the GST registration in a timely manner to avoid penalties.
You must purchase the appropriate label-printing machine for your business. The exact machine you choose will depend on the type of label-printing services you want to offer such as digital printing for food packages, label printing for clothing, label printing for products, label printing for food items, sticker for food packaging, etc.
Make sure to select a machine keeping in mind the business needs, production capacity and budget. You must also purchase raw materials for the machinery like paper, ink and adhesives.
Opening a current bank account for your business is extremely important. With this bank account, you will be able to conduct business transactions and separate your personal finances from business finances.
You can open a current bank account at any RBI-authorized bank of your choice. Carefully go through all the terms and conditions before opening the account.
You must tie-up with manufacturers and brands that require label-printing services. You can make substantial income every time you get a bulk order. You can sign contracts with them that mention your business as their official label-printing partner for a fixed period.
If you want to start a label-printing business, you must ensure you fulfill all the requirements. The requirements include choosing a business location, business registration, purchasing machinery and raw materials, opening a bank account, collaborating with manufacturers and brands and obtaining GST registration.
If you want to register your business as a ‘company’ under the Companies Act, 2013, you can connect with our consultants at Registrationwala for assistance.
Q1. Is it mandatory to declare the address of manufacturer on the packaged food item meant for sale?
A. Yes, it is mandatory to declare the manufacturer’s address on the packaged food item meant for sale.
Q2. Is GST registration mandatory for a label-printing business?
A. Yes, it is mandatory for a label-printing business if its annual turnover exceeds Rs. 40 lakhs for goods or Rs. 20 lakhs for services.
Q3. Can I start a printing business with low investment?
A. Yes, you can start a printing business with a low investment, especially if you already have a space and do not need to rent or purchase one. In the initial phase of your business, you can use inexpensive, good quality machines and as your business grows, you can purchase higher quality, expensive machines.
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Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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