How to Setup Beauty Salon Business in India

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Beauty Salon Business or Beauty Parlours are a common sight in India. There has also been a 35 percent rise in the parlour or salon business. According to research from a top lifestyle magazine, India’s beauty business would develop twice as quickly as the US and European markets in the next few years. Beauty items, as well as the creation of beauty parlours, salons, and wellness centers, are all part of the beauty sector. In this article, we will read about all the necessary information you need to know to Setup Beauty Salon Business in India.

Salons or parlours are unquestionably a promising business with several potentials in India, particularly for women entrepreneurs who play a significant role in the industry. So, if you are someone who is looking to setup a beauty salon business in India, continue reading this article.

What is a Salon Business in India?

A place that serves male and female clients with beauty services such as professional haircuts, nail care, and manicures, as well as cosmetics, makeovers, and a variety of cosmetic treatments is regarded as Salon Business in India. With the progression of time, the salon’s demand has grown. Therefore, A salon or beauty parlour may be classified into many types.  One can easily classify salon businesses in India on the services they will give. Generally, the following services are provided at Salon:

  • Spa and wellness center
  • Center for Reflexology
  • Hair salon
  • Center for Health and Wellness
  • A traditional beauty parlour or salon where women go to get their hair done.
  • Clinic for hair and skin
  • A cosmetology center, etc.

How to setup a Beauty Salon Business in India?

To setup Beauty Salon Business in India, you need to take care of many things. There can be factors such as –

  • Decide the services you will provide in Beauty Salon

As we read above, beauty salon provides several types of services. You can decide whether your business establishment will provide services individually or as a package. Furthermore, you will also have to decide the charges for each service and the products that you will use in these services.

  • Setup a Theme for Your Salon Business

Salon Business these days has a particular theme. You can also choose one. For example, a princess theme or a bold ethnic theme for a salon. Furthermore, You should start thinking about interiors, monthly rentals, company capital, target audience, ROI, and other factors after you have a good understanding of how much money a typical consumer will spend in your parlour.

  • Franchise vs Independent Parlour

Lastly, the thing that you should consider before turning ideas into reality is to decide the business type. Beauty Salon Business can start in two ways, i.e. independently or as a franchise.

The salon that works as a franchise of a major business has separate requirements. The franchisor provides assistance with the opening of the business, operations, employee training, and promotion, among other things.

However, in comparison to an independent business, this strategy necessitates a larger investment.

Furthermore, most franchisors will charge a franchise fee based on the salon’s earnings. To ensure that the franchise and franchisee rights cannot be transferred to another person or organization, you can create a franchise on having LLP Company Registration or Private Limited Company Registration.

A single entrepreneur or a group of entrepreneurs who own and manage an independent beauty parlour can also form a Salon Business. In this case, you will need either One Person Company Registration or Sole Proprietorship Registration.

This type is popular since it requires little investment and has low operating costs. However, huge chains with stronger promotional powers are increasingly putting pressure on smaller parlours. To compete successfully, you can apply for government schemes such as MSME Registration. One can also achieve ISO Certification in India and boost the growth of their salon business rapidly while beating the competitors.

How to get funds to Setup Beauty Salon Business in India?

Most firms have considerable upfront expenditures, but as a beginning, spending too much can be problematic. Take into account all of your costs, including beauty supplies, wages, rent, and so on. Once you have the statistics, you may choose from these three funding options to find the best approach to fund your dream salon.

  • Angel investors: Getting investors on board can be daunting for a newcomer to the startup world. Investors are interested in the company’s development, business plan, expansion potential, beauty items, and quality. Before investing in a young firm, one should study the demonstration that covers these aspects.
  • Personal funds: What better mechanism to fall back on than your own? You might also attempt forming a partnership with someone. This both saves money and distributes obligations.
  • Institutional loans: Taking out a loan from a government institution might help you discover your ambitions. However, when dealing with banks, the procedure gets highly official. You can run into difficulties since banks demand someone to underwrite the loan. The best way to get loans under 59 minutes from financial institutions is to have an Udyam Registration.

What are some Mandatory Licenses and Registrations to operate Salons in India?

In India, you must get permits from local government organizations in order to run a beauty salon. The cost may differ depending on how you do business. As a result, it is necessary to get approval in the early stages to avoid penalties and punishments

The following is a list of licenses and registration necessary to start a salon in India.

  • GST Registration

Salons must register with the GST and obtain a GSTIN number. Because GST registration is state-specific, if your salon has locations in many states, you’ll need to register for each one separately.

  • Shop Establishment Registration

Every individual who is establishing any commercial activity, such as a store or corporation, must comply with the applicable state laws. One such mandatory law is to apply for Shop and Establishment Registration within 30 days of commencing the business.

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  • Trade License

A Trade license is required by law to ensure that a person is not engaging in unethical business operations and is adhering to the laws and safety recommendations given by the government from time to time.

  • Trademark Registration

Customers can quickly distinguish your goods or services amid competitor’s items offering in a comparable domain, making the Unique Brand logo the most important asset of any firm. Protecting your brand mark against abuse or replication by others has become critical. Someone else can use your beauty salons’ branding and then create false products or services. Thus, trademark registration becomes an essential registration that you shouldn’t miss.

In conclusion, to setup beauty salon business you need to have detailed planning. The best way to turn your dream of setting up a beauty salon business into reality is by consulting our business experts for free. You can also get mandatory registrations and licenses and detailed guidance from our team of experts composed of experienced chartered accountants and lawyers.

Difference between Trademark and Service Mark

If you require any further guidance on How to setup salon business in India or any other registration or license requirements such as GST Registration, Company Incorporation, MSME Registration, etc. Please feel free to contact our business advisors at 8881-069-069.

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