K Choudhuri (Artist) 30 October 2014

Home based handicrafts business

I want to start a home based handicrafts business. I will make handicrafts at my home and supply them to various retailers.

1) What legal formalities are required?

2) Do I need a trade license?

3) Will this be treated as Cottage Industry?

4) Can the local municipality refuse a trade license since my home is a residential property?

5) Can I still supply the handicrafts to retailers by packaging the handicrafts (as per Packaged Commodities rules), even without a trade license?

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P.THANGAVEL (ADVOCATE & LEGAL CONSULTANT) 02 November 2014

1.It is advisable to contact the District Industrial center of your District which is state Govt.establishment who will guide you for all your requirements like establishing the unit,sourcing raw materials,arrangement of Bank loan,and for marketing too.

2.It is always desirable to get the unit registered under Shops & Establishment Act/ SSI Act/ or any other

local Acts so as to ensure security & safety of the business in the future and to avail benefits/subsidy/margin money/interest incentives/seed money/ from the Central/state Agencies.

3.The unit proposed would come under cottage industry and for which several incentive schemes are available.

4. Provided your unit does not cause any problem like pollution,disturbance to neighborhood/common people/ you may get license.

5. For packaged items sold in retail ,you have to follow the package rules which among other things stipulate to mention Nature of product,Weight,date of packing,contents,expiry date,MRP etc.

So, Kindly study all these aspects before venturing to your business unit.

With best wishes & good luck

P.THANGAVEL, ADVOCATE ( Former Senior Manager of PSB )