By

C. Rajesh kumar BTech

Salem, Tamilnadu
 PROCEDURE TO SETUP WOVEN GARMENT FACTORY

• Sufficient industry experience

• Preparation of Feasibility & Project Reports
 PRELIMINARY ANALYSIS & BUSINESS PLAN FOR GARMENT
MANUFACTRUING START-UPS
1. Product Identification: Conduct Market Survey and study the products as regards
their demand in the market.
• Check whether it is a seasonal product or it has demand throughout the year.
• Study similar products available in the market that can be probable competitors.
Analyses them as regards their utility, quality and cost.
• Find whether the product can be exported
• Explore the possibility whether some product can be manufactured in collaboration
with a foreign country. This provides readymade technical know-how and saves a
lot of time and money otherwise wasted in developing a suitable method of
manufacture.
 PRELIMINARY ANALYSIS & BUSINESS PLAN FOR GARMENT
MANUFACTRUING START-UPS
1. Decide the product that you are going to manufacture, on the basis of
– Market Survey (as explained above)
– Financial implications involved.
– Technical know-how available
– Experience in the line, etc
2. Preparation of preliminary project report to get rough idea on Machinery, raw
material and financial requirements.
3. To decide form of ownership which may be sole proprietorship or partnership etc
4. To decide factory location
5. To buy land or take built up shed
 PRELIMINARY ANALYSIS & BUSINESS PLAN FOR GARMENT
MANUFACTRUING START-UPS
6. To invite quotations for machinery and equipment
7. To prepare detailed project report which will include: Analysis of Industry, present
demand, future demand, requirement of equipment, raw material, labour, power,
finance, breakeven analysis, profitability etc
8. Apply for registration
9. Plan finance & Follow up sanction of loan
10. Open bank account
11. Estimating Production requirement
12. Type of Machines required
13. Number of Machines required
 PRELIMINARY ANALYSIS & BUSINESS PLAN FOR GARMENT
MANUFACTRUING START-UPS
14. Place order for Machinery
15. Plan layout of machinery
16. Factory Space requirement
17. Manpower requirement
18. Apply for Power
19. Apply for income tax and sales tax numbers
20. Sourcing of raw material and Accessories
21. Recruit personnel
22. Plan buying for raw material
23. Conduct trial run to see whether the desired quantity and quality of product is coming
PRELIMINARY ANALYSIS & BUSINESS PLAN FOR GARMENT
MANUFACTRUING START-UPS

24. Decide on pricing policy

25. Organize marketing
26. Plan account keeping
27. Plan commercial production
 LEGAL FORMALITIES TO START A GARMENT INDUSTRY
 Government procedures: getting an employment identification (EI) number is essential.
 Legal formalities-The legal formalities in a business may differ according to the location of
Industry (Place of the Industry). It is essential that first we should give a name to the
company and approve it before incorporation.
• We should file the application form with the registrar of the company and provide the
name and the address details to the registrar.
• Director Identification Number is important for Directors of both Indian and Foreign
company.
• The directors must get a DSC (Digital Signature Certification) for all the professionals or
other authorized representatives.
• The Memorandum and the articles need to be stamped. It depends on the authorized share
capital.
Documents required to be filled: The directors have to fill in few documents which include
Memorandum, Form 1, Form 18, Form 29, Form 32 etc. Power of Attorney, Tax Compliances,
Pan Card details, Insurance etc.
 LEGAL FORMALITIES TO START A GARMENT INDUSTRY
What is a TIN?
Tax Information Network (TIN) is an initiative made by Income Tax Department of India to
modernize the current system for collection, processing, monitoring and accounting of direct
taxes using information technology. It is a repository of Tax related information from across
the country. It is unique registration eleven digit number that is used for identification of
dealers registered under VAT.
Who should register for TIN?
TIN number registration is required for Manufacturers, Traders, Exporters and Dealers. When
new registration is undertaken under VAT or Central Sales Tax a new TIN will be allotted
under registration number. The TIN number should appear on all Quotations/Orders/Invoices
by both Sending Company and Receiving Company.
 LEGAL FORMALITIES TO START A GARMENT INDUSTRY
What is the procedure of TIN registration?
We can apply for this number online or visit one of the governments many facilitation centres across the
country and submit this form.
These are the documents that we will need to apply for a TIN number
1. ID Proof / Address proof / PAN card of proprietor with six photographs
2. Address proof of Business premises
3. 1st Sale / Purchase Invoice, copy of LR/GR & payment/collection proof with bank statement
4. Surety/Security/Reference.
This may differ slightly from State to State. After these documents are checked and scrutinized, a unique TIN
number is provided to applicant. For applicants who have Central Sales Tax number, this can be changed to
TIN number on request by the tax department.
Thank you