Importing And Selling Non-Renewable Energy Products And Services in India

 

I want to start my own business in India.

I want to start with trading (importing and selling) of non renewable energy products and services. I also want to represent some companies and their products as their dealers here in India.

So should I register myself as a PVT Ltd Co. with import export license, or should I exclusively register myself as a Trading PVT Ltd Co.

? I am a little confused here as I would in future want to start providing my own products and services in this domain.

Please Advice. Thanks in Advance.

 

Answer: What I understand from your question is that you already have contact in foreign countries and to start with you want to sell their products in India. Well, Its a good idea. It is better you register your company as a private limited, and then you can obviously sell your own products under that entity.

You can go to the official Indian government site for more details about registration process. http://india.gov.in/howdo/otherservice_details.php?service=19

You will definitely need an import license from local authority to legally import goods from other countries.

Export license will be only required if you are planning to export from India to outside countries.

Few points to keep in mind before you jump full-fledged…

  • Do proper market research/survey to understand demand for products you are going to import.
  • Understand profit margin in this field…
  • Do study local competitors and their products

I am not sure about how you have setup finance and payments, but do proper study of overseas payments, there is something called “Credit Note”, which is very useful when you are importing products in India and require credit from seller.

Dollar rates to keep in Mind: As you are importing, every Rs.1 increase in dollar rates will directly affect your profit margin. There is something called “Hedging”, which protects you from fluctuation in currency rates. All these big companies like Infosys, Wipro etc does implement this.

Hedging simply means you fix the dollar rates,  for e.g. Rs.50 per $1. Now even if it goes to Rs.55 you will get paid Rs50 and if it goes down to Rs.45 … you will still get Rs.50 per/USD.

Let me know if you have any more queries, You can use comment form below.

 

2 thoughts on “Importing And Selling Non-Renewable Energy Products And Services in India

  1. Vamcgalla Reply

    Hi, I would like to start a small scale business with latest technologies through online. I have lots of ideas, but when I check online all ideas are implemented by someone or other. So could you please suggest me some new ideas. I can do Investment up to Rs 2,00,000/-

    Is there any possible ways to start the business?

    I would like to know about rural warehousing agency. What is this exactly?

  2. Sanket Borkar Reply

    Hi,
    I have recently concluded my education. I hold a BE. in Instrumentation Engineering and Msc in Mechatronics Systems from London. I am really looking to start my own manufacturing unit. I have been trying to find out a lot about it on the internet but I am falling short of ideas. Basically I do not come from a business oriented family background, I am finding difficulty in choosing the right thing. Can anyone please help with the following…

    1. A good idea for a small scale manufacturing unit, majorly technical.(or at least a please where I can scout)
    2. Arrangement of finance for the same.

    I will be glad if I get suggestions here.
    Regards

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