Starting a Book Store in India

India has a strong and growing print and bookstore industry backed by a population that is becoming more educated and affluent. Though the internet and the advent of e-readers have transformed the print and book industry, there still exists good opportunity to start and grow a successful bookstore business in India. In this article, we look at the process for starting a book store in India.

Industry Overview

India has a growing and vibrant print book industry in India that is estimated at about 26000 crores including imports. The industry is mainly unorganised with small book stores garnering the largest market share. In recent years, ecommerce, book store chains and e-readers has began to make strong in-roads into this market by providing a larger selection of books and instant availability.

Investment Requirement

A book store can be setup in India with minimal investment. Two of the major areas where the capital will be applied are infrastructure and stocking of books. Usually about 10 - 20 lakhs is spent on infrastructure like rental deposit, interior, etc., while Rs. 40 to Rs. 80 lakhs is spent on stocking the book store with a wide selection of books. Hence, a book store can be setup in India with an investment of about Rs.50 lakhs.

Business Registration

The following are registrations and licenses that maybe required while starting and managing a book store in India.

Company Registration

A typical book store started with an investment in stock of books valued at Rs.1 crore usually achieves an annual revenue of about Rs.2 crores, based on location and other factors. Further, most book stores have investment in books of more than Rs.25 lakhs. Hence, its best to

start a private limited company for conducting the business of book store.

VAT Registration

VAT rates and regulations differ from state to state. Hence, its important to know about the relevant State VAT regulations before setting up a book store. Though VAT registration may not be required in most states for selling books, it is recommended that VAT registration be obtained and nil VAT return be periodically filed to stay compliant. Having a VAT registration will enable the book store to easily sell online through platforms like 1,

Snapdeal, Amazon, etc., or obtain a payment gateway to sell online.

IE Code

Customers of a book store may at often times request books from foreign press and it may be required for the book store to carry books from foreign press. In such cases, the book store would import goods from abroad. For such instances, an

import export code or IE code would be required for the book store to clear customs. Hence, its recommended that book store obtain IE code after commencing operations.

Trademark Registration

Book stores having unique names or those establishing a chain of book stores can

trademark the book store name. Trademarking the book store name early on can help protect the brand and set the stage for franchising or opening of multiple outlets in the future.

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Frequently Asked Questions

Common questions about Starting a Book Store in India: Investment & Registration.

The article mentions that a bookstore can be set up in India with an investment of about Rs. 50 lakhs. This includes around Rs. 10-20 lakhs for infrastructure like rental deposit and interiors, and Rs. 40-80 lakhs for stocking a wide selection of books.

Yes, the article recommends starting a private limited company for conducting the business of a bookstore, especially if the investment in stock of books exceeds Rs. 25 lakhs or if the expected annual revenue is around Rs. 2 crores or more.

Although VAT registration may not be required in most states for selling books, the article recommends obtaining it and periodically filing nil VAT returns to stay compliant. It also enables the bookstore to sell online through platforms like Flipkart, Snapdeal, Amazon, etc., or obtain a payment gateway for online sales.

An IE Code is recommended for bookstores that plan to import books from foreign publishers or presses. This code is necessary for clearing customs when importing goods from abroad, which may be required to cater to customer requests for books from foreign publishers.

Trademarking the bookstore's name can help protect the brand and set the stage for franchising or opening multiple outlets in the future. This is particularly beneficial for bookstores with unique names or those planning to establish a chain of bookstores.

According to the article, the two major areas where capital is invested in setting up a bookstore in India are infrastructure (like rental deposit and interiors) and stocking a wide selection of books.

The article mentions that although the internet and the advent of e-readers have transformed the print and book industry, there still exists a good opportunity to start and grow a successful bookstore business in India due to a strong and growing print and bookstore industry backed by an increasingly educated and affluent population.

The article states that the print book industry in India, including imports, is estimated to be around 26,000 crores (Rs. 2,600 crores or approximately $350 million).

According to the article, in recent years, e-commerce platforms, bookstore chains, and e-readers have begun to make strong inroads into the Indian book market by providing a larger selection of books and instant availability.

The article mentions that the Indian print book industry is mainly unorganized, with small bookstores garnering the largest market share, although organized players like e-commerce platforms and bookstore chains are gaining prominence.