How to set-up a Ayurvedic Company for online selling?

Abstract:

For online selling of any material, you must have GST registration number. Nearly all online sale portal will ask for you GSTIN, Pan card, company account number etc. I know this because I have registered at Amazon and Snapdeal for selling. That's way I know their documentation. They must need GSTIN. You should apply for GSTIN if you want to sale online. For more detail, you can verify at their customer care first before going in third party manufacturing.

Query:

My company will be a Ayurvedic – Start up. I have passion for Ayurveda and personally tried some of products as well. Currently looking for product – Brahmi.
Below are the details which I require to know from manufacturer:

1. What is the price for 55% bacosides (500 mg capsules 320mg extract + 180 mg whole bacopa powder (We are not looking at addition of any fillers or gluten substances(point 3)
   Also would be interested to know price for following strengths:
   *500 mg(15%)
   * 500 mg(20%)
2. What are the capsules (for example veggie capsules or animal), We prefer it to be veggie
3. Does it contains any of this(flow agents, fillers, binders, artificial ingredients, preservatives, Sterates, Laurates, Sulphates, or Dioxides)
4. What are the various certification you have for your products, We are prefering USDA organic to start with (Very similar to what ——- is doing it in US, See here Currently they are in a problem as their Brahmi has been found traces of Lead) This will differentiate it from other competitors playing in the market. As people is getting more aware of what they are putting in the body, The certification will be a big boost.
5. Do manufacturer have a independent lab certificate of analysis of purity (like heavy metals(lead) tests etc) done on this extract.
6. Will manufacturer be providing any Quality certificate for the batch.
7. Do mention Minimum order that manufacturer can supply.
8. Advance payment – How much %
9. Documents required to place the order
10. Packaging

Do I require GST registration at this point of starting the business. I am planning only for online marketing. Please suggest.

Response:

Ayurveda has bright future in coming years. Its best option to start with Ayurvedic products but as specification, you are searching for is not available to small and medium size Ayurvedic Manufacturing Companies. In Ayurvedic Field most manufacturers are of small and medium size. Most of manufacturers will not have USDA certification. Based on your queries, I trying to provide you some clearances… Yellow color area is of your query:

1. Same formulation you can get from any manufacturer but quantity will be high for this. You have to search for Ayurvedic manufacturer who has regular supply of this product. Manufacturer having regular consumption can only give you less quantity. Other wise you have to invest in whole batch. i.e. not less than 50000 cap.
2. Both type of capsules you can get. only some rate difference will occur. That is not big problem. In Ayurvedic Products has good demand of Vegetarian capsules.
3. Same formulation, you could get. No other additives will be mixed with bacopa powder. At present I don’t have rates of this. I give you after some time. In capsules, there is no need to add any additional additives as you mentioned. Bacopa powder can be filled directly in capsule shell. In case of tablet, manufacturer need to add binders, fillers, gum etc to provide it strength and shape
4. Small and macro manufacturers will have only GMP, ISO certification. Very Few companies will have USDA certification. Only MNC’s and big companies will comply with USDA certification compliance.
5. Every companies have its testing lab. But in Ayurvedic section, most of small companies don’t do heavy metals testing for their preparations. Heavy metal testing can be done from independent laboratory.
6. Quality certificate will be provided by manufacturer for ingredients and strength added in product. COA ( Certificate of Analysis) and Test reports will be attached with sale invoice.
7. In third party manufacturing, you will not get less than 25000-30000 cap in single batch. You have to get manufactured 25000 cap batch size at once. Manufacturer having regular batch for this product can give minimum quantity. You can ask to manufacturer about minimum quantity. May anyone could arrange to fill minimum quantity.
8. Most of manufacturer takes 25-30% advance and remaining against performa invoice before dispatch.
9. Only you tax identification number, company registration documents, registered office may require. But you can also get manufactured your ayurvedic products from any one of above documents. Don’t required much documents.
10. Packing as per your choice will be available. Packing Material is marketing company’s choice. Even You can make available packing material from your side if you want. In that case, you will send packing design to manufacturer for any technical correction only. Manufacturer also can available packing material, he will charge as packing material security for remaining packing material after consumption at your product. You need product in pet bottle as you describe about products. it will require only label or additionally it can have outer box. Packing material cost will not be much higher for it.

If you want to know third party manufacturing procedure, you can read here: What is Third Party Manufacturing, Procedure and Documentation etc

For online selling of any material, you must have GST registration number. Nearly all online sale portal will ask for you GSTIN, Pan card, company account number etc. I know this because I have registered at Amazon and Snapdeal for selling. That’s way I know their documentation. They must need GSTIN. You should apply for GSTIN if you want to sale online. For more detail, you can verify at their customer care first before going in third party manufacturing.

Mainly required certification from manufacturer are Quality certificate, GMP, ISO certicate etc.

Hope above information is useful to you…

For any query and suggestion, mail us at pharmafranchiseehelp@gmail.com

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