Professional Documents
Culture Documents
Legal Obligations of Retail Industry
Legal Obligations of Retail Industry
Introduction
Retailing can be said to be the interface between the producer and the individual consumer buying for personal consumption. Retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. It is a sale to the ultimate consumer
Retail Industry
1) Organized Retailing-Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses.
2) Unorganized Retailing-Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.
Legal Requirements
1. 2. 3. 4. 5. 6.
The first thing is to enter into an Agreement for taking place for opening of store. The nature of Agreement depends on case to case like Lease Agreement, Leave & License Agreement etc. Contact the registrar for obtaining a name for your company. Apply for your tax identification number (or EIN: Employer Identification Number). The government uses this number to identify a business. Get a trade license. Register the store under Shops and Establishment Act of the respective state. Other acts likeSales tax act The consumer protection act, 1986 Weights and measures act,1976 The prevention of Food Adulteration Act, 1954 The Sale of Goods Act, 1930, etc are applicable. A plethora of taxes too govern the sector like CENVAT, Sales tax act etc.
Certification Required
1. 2. 3.
Food, Pharmaceutical, Healthcare and MedicalHACCP (Hazard Analysis and critical control point) WHO-GMP (Good Manufacturing Practices) BRC (Food and Packaging)
1. 2.
1. 2. 3.
Contd.
1. 2. 3. 4. 5. 6. 7. 8.
SA8000
ISO 27001 ISO 28000 SA 8000
Introduction
To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999. The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (FIPB) would be required
Franchise Agreements
Cash And Carry Wholesale Trading Strategic Licensing Agreements Manufacturing and Wholly Owned Subsidiaries.
FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route.
FDI up to 100% with prior Government approval (i.e. FIPB) for retail trade of Single Brand products.
FDI up to 51% is permitted in Multi Brand Retailing in India.
FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity. The policy of allowing 100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use. India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and costcompetitiveness.
Move will lead to large-scale job losses. Global retail giants will resort to predatory pricing to create monopoly/oligopoly. This can result in essentials, including food supplies, being controlled by foreign organizations
References
UL DQS India www.Scribd.com Retailing Mgt. by Michael levy, Barton A weitz It happened in India By Kishore Bayani Reuters India