Starting a new Business

Kapil Kathpal (Sole Prop) (26 Points)

07 November 2009  

Hello guys,

Need some guidance. Here's my scenario, what I'm going to do.

I'm starting a new dietary supplement brand. Currently, i'm going to take various raw material from importer in Delhi. One of my friend is MD of Pharma company. They'll mix raw material for me. I'll provide them jars and labels. They'll pack final material in jars i've given them and lastly seal them.

After that sealing the jars, they'll give me final product. I want to sell them online on various websites. Do I need any Sales Tax number? I heard from my friend that there's no need of sales tax number if your sales are below 5lacs.

Importer is asking me some "C FORM". I'm in Panchkula, Haryana. Kindly guide me, what should I do?

Tomorrow i'm going to open current account. I want all payment should go via current account to importer and I should receive all payments of sold products in that current account. I'll sell products all over India (not limited to my state only).

One more thing i want to ask, like i'm giving my friend raw material and he's mixing them. Is it right to put on label that it's manufactured by my friends firm, and marketed by my firm.

Looking for kind help,
Kapil K.