Selling Tobacco in India
Updated on Friday 02nd February 2018
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In order to sell tobacco in India, special regulations have to be followed. Investors interested in how to form a company in India will need to comply with the regulations prescribed under The Cigarettes and Other Tobacco Products Act 2013. It is important to know that, traditionally speaking, India represents a top jurisdiction (the third at a global level) for the annual production of tobacco crops, estimated at 800 million kilograms. At the same time, this country is the world’s third global exporter of tobacco products and our team of specialists in company formation in India can advise on the main procedures for entering into export activities related to this product.
Regulations concerning selling tobacco in India
Companies in India that sell tobacco are required to respect a set of regulations for the manner in which such activities can be carried out here. When starting a company in India selling tobacco, it is necessary to know that products which are not related to tobacco can’t be sold within the premises of the shop.
Following the adoption of The Cigarettes and Other Tobacco Products Act 2013, only shops that have received a license or those that were authorized by the local municipalities may sell tobacco products. Moreover, specific products, such as candies, biscuits, soft drinks or chips, may not be sold in the store, in an attempt to reduce smoking habits among young persons. This is the primary aim of the new policies imposed here. Our team of consultants in company registration in India can offer more details regarding smoking regulations.
Important aspects to consider when selling tobacco in India
Smoking in India is prohibited in specific locations, including in numerous public areas. Smoking is prohibited in hospitals, educational institutions, public transportation and governmental facilities.
However, under the local legislation, special areas designed for smoking are permitted in airports. Companies operating as accommodation units or restaurants can allow persons smoking inside the premises, as long as both types of units are designed to accommodate more than 30 persons.
As a general rule, most of the advertising of smoking products through mass media is prohibited, while the package containing cigarettes should have special graphic images and warnings.
Businessmen interested in company formation in India in the tobacco industry are invited to contact our team representatives for further advice on this subject.