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Top 3 Ways to Stepped into T-shirt business in India

calendar21 Sep, 2021
timeReading Time: 4 Minutes
T-shirt Business

T-shirt is one of the widely-used clothing articles in the world. Owing to this, setting up a T-shirts business has become a prominent choice for the start-up looking to establish a business model with minimal investment. The T-shirt market is highly competitive but still has a behemoth of potential from a growth standpoint. If you are intending to earn substantial revenue from this venture, you need to get started in the right way by picking up the right channels. In this article, we will discuss the three most productive ways for starting a t-shirt business in India.

Start as an Exporter

One of the most widely utilized & a replenished commodity in apparel is the T-shirt, which is staple wear for people from all verticals of society. For India, this category is the prominent export product to the United State, and in the period Jan-April in FY 2020, t-shirt export has managed to secure the revenue of US $ 300 million despite countless disruptions in the trade. Though India is outfitted with integrated capabilities in knitwear, the nation’s share in the overall T-shirt import of the USA, accounted for the US $ 5.58 billion. Functioning as an exporter is one the most profitable way to step into the t-shirt business in India.  Considering these figures in mind, one can easily assume setting up a T-shirt export business is rather a profitable venture from a growth standpoint. 

Some legalities need to be followed before commencing the export of T-shirts from India. These are as follows: 

Registration of Firm

To operate as a legal exporter, you must have a business setup in place. You should open a sole proprietorship in the early phase with an enticing name and logo. 

Obtain a PAN Card 

PAN refers to a ten-digit alphanumeric code, granted in the form of a laminated card, by the IT department. After availing of company registration, it is compulsory to avail of a PAN[1] card granted by the IT department. 

Open the current Account 

After securing the firm registration & PAN card, you are required to open a current account with any commercial bank to conduct business-related transactions.  

Import Export Code 

Import Export Code, i.e. is a ten-digit code granted by the DGFT (Directorate General of Foreign Trade). It aims to legalize the activities related to foreign trade i.e. import and export. Therefore, IEC Registration is a mandate for all exporters, including the ones having export-driven t-shirt business in India. You can get this license by applying on the DGFT portal. During application submission, you will be asked to upload some mandatory documents such as business registration, owner’s ID, proof of business place, etc. 

GST registration 

Entities dealing with t-shirt business either domestically or globally are liable to register under the GST regime. For new GST registration, visit the GST portal and fill the part 1 of the form, viz GST-REG 01. Here you need to furnish details like PAN, contact number, State, Email. Upon successful submission of these details, the portal will conduct the legal checks for the same and then forward the TRN to registered contact details. Next, the applicant is required to use the TRN for filing Part B of the aforesaid form. Upon submitting PART B, the authority would take around 3-7 days to grant the GST certification. 

RCMC from the Apparel Export Promotion Council

Entities intending to commence the export-oriented T-shirt business in India are required to avail of this certification. To become a registered member of AEPC, the following documents are required under FTP, may be furnished at any AEPC office.

  • Application form available on the AEPC website 
  • The self-certified copy of the import-export code 
  • A notarized declaration on the non-judicial stamp paper
  • A self-attested copy of MOA and AOA/Certificate of ROFs/partnership deed as the case may be.
  • In case the exporter intends to be legalized as a manufacturer exporter, self-attested SSI certificate’s copy/ LOI/Factory license/consent from the concerned authority.
  • Demand Draft/Cheque/Pay order worth Rs 10350 in favor of AEPC payable at the place of furnishing the application for registration

What are the key objectives of the Apparel Export Promotion Council?

  • Imparting Skill to the workers in the apparel sector to ensure quality production 
  • Arranging trade fairs and events for exporters in India 
  • Granting certification to apparel exporters to earn better recognition at the global level
  • To setup design centers, to develop improved design suitable for export
  • To improve the standards as well as the quality of the standards. 
  • To develop an export market 
  • To perform export promotion activities 

Starts as an online seller 

The online trading of apparel has gained a lot of momentum in the past few years. With different online marketing tools at your disposal, you have the liberty of maximizing the brand reach at the lowest possible cost.

Pros of setting up online T-shirt business 

  • Access to larger customer base 
  • Access to an untapped market
  • Easy targeting of customers owing to different marketing tools 
  • Cost Effective  than conventional marketing channels

Set up a Factory Outlet 

If you aren’t fond of online business and wish to set up a physical store, then look no further than a Factory outlet. Factory outlet mitigates the middleman, enabling the manufacturer to sell out quality merchandize directly to the masses. General outlets, on the other hand, sell out-of-season or slightly flawed brand name merchandise. 

Unlike general outlets, factory outlet represents brand manufacturers. Subsequently, the owner of the factory outlet often has less liberty than general outlet owners. 

PROs of Factory Outlet Startups

  • As a factory outlet, you would have access to better brand recognition, Pan India marketing, & other benefits that aren’t accessible to unbranded outlet stores. 
  • Several manufactures facilitate their factory outlet stores with proven operational plans & processes. You will likely be needed to administer strict norms with brand protocols, workflows & processes. 

Conclusion 

T-shirt business is a type of venture that has never gone out of trend. Considering the past data and production capabilities, this particular venture is likely expanded further and expected to secure more revenue from the domestic as well as international market. Connect with CorpBiz in case you need professional services regarding the obtainment of the license mentioned above. 

Read our article:How to Set up Carpet Export Business in India?

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