Foreign Direct Investments (FDI) in Beauty & Wellness Products in India-2: Lawyers Advice on Foreign Investments in India | Law Firm for Foreign Investments in India | FDI Attorney in India | India Business Entry | Legal Advice for Foreign Investors in India
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Company Registrations, Compliances, Licenses and Permits which are to be procured:
• GST and Shop Registration
• License on form 32 is issued for production/selling/distribution of cosmetics.
• License on Form 32-A is issued for loan for production/ sale distribute of cosmetics.
• Registration with the State-specific Authority as a private medical establishment.
• Registration under the Prenatal Diagnostics Techniques Act, 1994.
• Registration under various direct and indirect tax legislations.
• Possession of Drug License for operating of X-ray machines, CT scan.
• License to obtain drugs and operate a blood bank from Food and Drug Administration (FDA).
• Medical Termination of Pregnancy Act, 1971.
• Authorization for creation of a facility for generation, collection, transport, storage of bio-medical waste under the Bio-Medical Waste (Management and Handling Rules), 1998
Precautionary Measures:
• Innovative Pricing: Companies should be introducing innovative pricing strategies to gain consumer’s confidence.
• Personalised Touch: in order to create a personal bond with the customer and retain them for a longer duration, the focus on customization has increase. Leading players are offering personalized products and services based on taste, preferences, lifestyle, body type and even genetics.
• At Home Services: digital portals have created perfect opportunities for companies to explore on-demand at-home service model. The model creates a win-win situation by ensuring customer convenience.
• Social Media Presence: Exclusive websites, digital tracking and promotional activities helps consumers be aware of the market’s leading companies and variety of options one could choose from.
Functioning and Management:
• The digital strategy of any business comprises of three key segments:
a) Customer engagement: this includes widespread usage of digital platforms such as apps and social media to persistently engage with the customers. Social media has become a strong platform for companies to build and toughen their brand value.
b) Operational optimization: this includes adoption of latest methods to enhance operational effectiveness and efficiency.
c) Product and service transformation: It allows companies to create an edge through differentiation, thereby building brand value in the market.
Taxation Aspects:
• Goods and Services Tax (GST) eliminates various problems that the enterprise in the market had to face when the tax regime was not unified. Now the products, cost of good and the services rendered comes under the same umbrella which saves the owner’s time and money.
• In case of small businesses like salon chains, GST is proving to be an advantage for them as it provides added tax set-off benefits on consumables paid against their GST of services rendered giving them a profit margin.
Export Potential:
• The skill development programs organised by the reputed institutions like VLCC, Oriflame helps to get a wider reach amongst people for the products available in the market.
• World Bank aided Andhra Pradesh to develop around 7500 health care centres.
Recent Developments:
• Japan based venture capital firm and a subsidiary of SBI group “SBI Investment” invested $17.2mn for health-tech AI startup named Mfine.
• Amway India to invest up to $4.7 million to improve its digital platform
• DM Aster group plans on investing $59.6 million to Chennai’s 500 bed multifacility hospital.
• FSSAI prohibited the use of 14 ingredients lacking scientific data for safe usage, in the manufacturing of health supplements and nutraceuticals, governed under the nutraceutical regulation.
Authored By: Adv. Anant Sharma