{"id":35785,"date":"2021-09-20T11:21:12","date_gmt":"2021-09-20T05:51:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=35785"},"modified":"2021-10-28T15:07:02","modified_gmt":"2021-10-28T09:37:02","slug":"how-to-set-up-carpet-export-business-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-set-up-carpet-export-business-in-india\/","title":{"rendered":"How to Set up Carpet Export Business in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Indian Handmade Carpet Industry is labour\nintensive &amp; facilitates employment to over 20 lacs artisian\/workers\nparticularly women in the rural regions. Most of the weavers\/artisans employed\nare from the underprivileged strata of the society &amp; this trade facilitates\nstable occupation to them, including farmers and others at their homes. Exports\nincreased from INR 4.4 crores in 1961 to INR 13810 crore in 2021. Ranked no.1\nas a manufacturer &amp; exporter of handmade carpets both in terms of volume\n&amp; value, Artisans can produce handmade carpets in any colour, design, &amp;\nquality as per the demand of international consumers &amp; also caters to the\ndemand of every segment of the society. <\/p>\n\n\n\n<p>Manufacturers a diverse range of handmade carpets in low, medium, and supreme qualities to cater to a wide range of customers, raw material utilization are diverse &amp; blending of different types of yarns is its forte. At present, India rejoices the first position in the global handmade carpet market. India has a long history of producing and shipping exquisite quality handmade carpets across the globe. The carpet export business can serve as a perfect venture for startups aiming to underpin a reliable income source with minimal investment. This write-up takes a brief glance at the different aspects of the carpet export business.<\/p>\n\n\n\n<div class=\"mt-3 mb-3 embed-responsive embed-responsive-16by9\"><iframe class=\"embed-responsive-item\" src=\"https:\/\/www.youtube.com\/embed\/pWUqhSFMbw8\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">The typical process of manufacturing Carpet in\nIndia&nbsp;&nbsp;<\/h2>\n\n\n\n<p>Carpet manufacture consists primarily of the following activities:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Buying-stretching-cleaning-drying-the-yarn.png\" alt=\"process of manufacturing Carpet \" class=\"wp-image-35786\" width=\"548\" height=\"380\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Buying-stretching-cleaning-drying-the-yarn.png 904w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Buying-stretching-cleaning-drying-the-yarn-300x208.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/09\/Buying-stretching-cleaning-drying-the-yarn-768x534.png 768w\" sizes=\"(max-width: 548px) 100vw, 548px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Checklist for commencing Carpet Export Business&nbsp;<\/h2>\n\n\n\n<p>Here is the typical checklist for setting-up\na carpet export business in India<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Procure Machinery<\/h3>\n\n\n\n<p>Presently, plenty of OEMs offer a wide array\nof software-controlled carpet making equipment to the manufacturers. These\nequipment are capable of producing quality carpets with countless design\noptions.&nbsp;<\/p>\n\n\n\n<p>The machine is a circular digital jacquard\ncarpet machine having 8 tone lines. These computerized machines are capable of\nproducing absolute terry, whole secants, high low loop pile, and circle cutting\nstyles.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Raw materials<\/h3>\n\n\n\n<p>The key appeal of a carpet is the ability to\nrender a cushiony, warm surface underfoot. Customers usually take two\ncharacteristics into account while choosing a carpet: the type of synthetic and\nnatural fibre used in the construction &amp; the pile- how the loops of the\nfibre are weaved to the backing of the carpet. These characteristics determine\nthe carpet\u2019s comfort as well as its wear characteristics.&nbsp;<\/p>\n\n\n\n<p>There are various ranges of fibre used in\ncarpet, but the most popular are polyester, nylon, acrylic, polypropylene, and\nwool. Carpets are manufactured by looping the fibre yarns through the backing\nmaterial. These loops can then be left either intact or cut at many lengths\n&amp; angles. The procurement of these raw materials can be done from the\nvarious sources available online and offline.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Pinpoint Apt Location<\/h3>\n\n\n\n<p>The area required to set up a carpet-making\nunit is approximately 500 ft2. If possible, Identify the location with ample\nroad connectivity and somewhere near the vicinity of shipping docks. This will\nhelp you minimize the overall transportation cost.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Opt for Business Incorporation&nbsp;&nbsp;<\/h3>\n\n\n\n<p>Business Incorporation serves as a\nfundamental license for establishments aiming to operate in a legal framework.\nTo avail company incorporation, the startups need to choose a specific business\nstructure from the following that come under different Acts.&nbsp;<\/p>\n\n\n\n<ul><li><strong><em>Partnership Firm (comes\nunder Partnership Act, 1932)<\/em><\/strong><\/li><li><strong><em>LLP (LLP Act, 2008)<\/em><\/strong><\/li><li><strong><em>Private Limited company (Company\nAct, 2013)&nbsp;<\/em><\/strong><\/li><li><strong><em>Public Limited Company\n(Company Act, 2013)<\/em><\/strong><\/li><li><strong><em>One Person Company\n(Company Act, 2013)&nbsp;<\/em><\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Avail Business PAN Card<\/h3>\n\n\n\n<p>Once you incorporate your establishment\nsuccessfully, the next step is to avail the Permanent Account Numbers from the\nIncome Tax Department.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Open the Current Account<\/h3>\n\n\n\n<p>After obtaining a Permanent Account Number,\nyou must open a current Bank account in a designated bank to cater to\nbusiness-related transactions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Secure the Import-Export code from DGFT<\/h3>\n\n\n\n<p>Import-export code is a mandatory certification for conducting EXIM-related undertakings in India. Directorate General of Foreign Trade is an apex government institution that grants the Import Export Code in India. To avail of such a certification, the applicant needs to fill an e-form on the <strong>DGFT\u2019s portal<\/strong><sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/\"><strong>[1]<\/strong><\/a><\/sup>, upload the requested documents, make an online payment, and submit the form via DSC or EVC mode.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Get the Udyog Aadhar Registration<\/h3>\n\n\n\n<p>Udyog Aadhar Registration, broadly known as <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> is a voluntary certification that aims to benefit small businesses by facilitating much-needed fiscal aid &amp; exposure to different markets. Thus, Udyog Aadhar Registration is a boon for a carpet export business. Udyam Aadhaar Registration is granted after filing the prescribed e-form available on the Udyam Aadhaar portal.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Composite criteria for MSME<\/h4>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td colspan=\"4\">\n<p style=\"text-align: center;\"><strong>Composite Criteria: Investment in Plant &amp; equipment &amp; Annual Turnover<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Classification<\/strong><\/p>\n<\/td>\n<td>\n<p>Micro<\/p>\n<\/td>\n<td>\n<p>Small<\/p>\n<\/td>\n<td>\n<p>Medium<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><strong>Manufacturing Enterprises and Enterprises rendering Services<\/strong><\/p>\n<\/td>\n<td>\n<p>Investment in Plant &amp; Equipment:<br> Not more than INR 1 crore &amp; Annual Turnover ; not more than INR 5 crore<\/p>\n<\/td>\n<td>\n<p>Investment in Plant &amp; Equipment:<br> Not more than INR 10 crore &amp; Annual Turnover ; not more than INR 50 crore<\/p>\n<\/td>\n<td>\n<p>Investment in Plant &amp; Equipment:<br> Not more than INR 50 crore &amp; Annual Turnover ; not more than INR 250 crore<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h3 class=\"wp-block-heading\">Avail of the GST Registration&nbsp;<\/h3>\n\n\n\n<p>GST registration enables your business to operate legitimately and makes your brand authentic and trustworthy. With the GST web portal simplifies various processes, starting from e-form to filing returns, <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> is the initial step to efficiently managing your firm taxes.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Who seeks GST registration?&nbsp;<\/h4>\n\n\n\n<p>To avail GST registration, your annual\nturnover must meet one of the given thresholds:&nbsp;<\/p>\n\n\n\n<ul><li>For the manufacturing sector, the\nthreshold limit is INR 40 lacs or more<\/li><li>For the service sector, the\nthreshold limit is INR 20 lacs or more.<\/li><li>For businesses belong to\nNorth-eastern &amp; hill states, the threshold is INR 10 lacs or more<\/li><\/ul>\n\n\n\n<p><strong><em>Further, if you fulfil any of the\ngiven criteria, you must avail GST registration:<\/em><\/strong><\/p>\n\n\n\n<ul><li>You sell goods or services via\ninter-state business<\/li><li>You leverage e-commerce avenues\nto sell your products<\/li><li>You are in the EXIM business<\/li><li>You are intending to generate\ntax invoices for your end-users<\/li><li>You are an entity participating\nas casual taxable individual in an event outside your state&nbsp;<\/li><li>You are exposed to taxes under\nRCM i.e. reverse charge mechanism<\/li><li>You are serving as a\nrepresentative of a registered taxpayer<\/li><li>You are an ISD i.e. Input\nService Distributor<\/li><li>You have a web-based store or\nan aggregator business<\/li><li>You are functioning as an\nOnline Information Database Access and Retrieval (aka OIDAR)<\/li><\/ul>\n\n\n\n<p><strong>Opting out GST registration despite meeting the above requisite would attracts hefty penalties for the business owners.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Obtain the RCMC from Carpet Export Promotion Council<\/h3>\n\n\n\n<p>The Carpet Export Promotion Council (CEPC)\nserves as an apex government institution of exporters of handmade carpets &amp;\nother floor coverings in India. The council renders support to exporters by\npinpointing potential markets, facilitating fiscal aid, sponsoring\nparticipation in global events, conducting trade meets and reconciling trade\ndisputes. Exporters registered with Carpet Export Promotion Council are bound\nto follow underlying norms for maintaining the quality of the products for the\nglobal market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>A carpet export business is thriving even under these times where business fraternity is still coping with the repercussion of the Covid-19 pandemic. And since India rejoices the prominent position in the global export of carpet, it does make sense for any aspiring entrepreneurs to jump into this venture.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-starting-a-plastic-export-business-in-india\/\">The procedure of Starting a Plastic Export Business in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian Handmade Carpet Industry is labour intensive &amp; facilitates employment to over 20 lacs artisian\/workers particularly women in the rural regions. Most of the weavers\/artisans employed are from the underprivileged strata of the society &amp; this trade facilitates stable occupation to them, including farmers and others at their homes. Exports increased from INR 4.4 crores [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":35791,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[968],"tags":[1965],"acf":{"service_id":"250"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7198,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35785"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=35785"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35785\/revisions"}],"predecessor-version":[{"id":37247,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/35785\/revisions\/37247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/35791"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=35785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=35785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=35785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}