How to Start a Gold Business in India?

Knowing your customers and choosing what to sell is the first step. Find out what kind of businesses customers demand and what's popular right now:

• Gold Jewellery Retail: Selling finished gold (like traditional, modern, or wedding pieces) for everyday wear and special occasions.
• Gold Manufacturing: Designing and making gold pieces. This involves craftsmanship and design expertise.
• Gold Coin and Bar Trading: Buying and selling gold coins and bars for investment. This is for people who want to put their money in physical gold.
• Online Gold Business: Selling gold products through e-commerce platforms. This helps you reach more people beyond just a physical shop.
• Scrap Gold Recovery and Selling: Buying and refining old or damaged gold for resale. If you want to operate as a gold refiner, you need BIS recognition as a refiner, along with the required Pollution Control Board consent and factory license.
• Gold Loan Services: Lending money against gold as collateral is an NBFC activity. It requires registration with the RBI under Chapter IIIB of the RBI Act , subject to the applicable minimum net owned funds requirement.
• Gold Testing and Assaying: Testing gold purity and providing certification services. This requires BIS recognition, along with specified equipment and qualified personnel.
• Custom Gold Design: Creating special, one-of-a-kind pieces for individual customers. This meets unique customer requests.
• Digital Gold Business: Selling gold through online platforms like Paytm and MMTC-PAMP . This model offers low-investment entry but isn't currently regulated by SEBI or RBI as a formal financial product.

Once you've chosen your niche, the next step is to plan your investment, registrations, sourcing, setup, and marketing. The steps below cover what you need to consider when setting up and running a gold business in India:

Step 1: Conduct Market Research and Choose Your Niche

Research current trends, customer preferences, and your target audience before choosing a specific gold business type. Decide whether you want to focus on traditional jewellery, modern designs, coins and bars, or services such as gold loans or testing.

Step 2: Create a Detailed Business Plan

Outline your business goals, target audience, financial projections, and operational strategy. Include your expected startup costs, pricing, sourcing plans, and marketing approach to create a clear roadmap for the business.

Step 3: Arrange Funding

Secure capital through personal savings, business loans, or investors before committing to inventory and shop setup. Most gold businesses require ₹6 lakh to ₹25 lakh or more to start, depending on scale.

Step 4: Register Your Business and Complete Legal Compliance

• Business Structure: Register as a Sole Proprietorship , Partnership, LLP , or Private Limited Company based on your scale and future goals. Use the correct NIC Code for gold businesses during registration to ensure your business activity is classified accurately.
• GST Registration: Register for GST once your turnover exceeds ₹40 lakh for goods businesses or ₹20 lakh in special category states. Gold attracts a specific GST rate distinct from most goods, and you'll need to reference the correct HSN code for gold on your invoices and returns.
• BIS Hallmark Registration : BIS registration is mandatory for jewellers selling hallmarked gold of 14 carats and above, subject to the applicable hallmarking requirements. Apply through the NSWS or BIS portal . Registration is instant, free, and valid for the business lifetime, while hallmarking charges apply separately.
• Trade License: Required from your local municipal authority for a physical retail outlet.
• Shop and Establishment Act Registration : Covers compliance related to working hours, employee rights, and premises safety.
• Fire Safety Certificate: Issued by the local fire department after inspection, essential given the value of inventory stored on-site.
• Pollution Control Board Certificate: Required if you're involved in manufacturing processes.
• PMLA Compliance: As a dealer in precious metals, you fall under the Prevention of Money Laundering Act, 2002, as a Person Carrying on Designated Business or Profession, regardless of business size. Cash transactions of ₹10 lakh or more with a single customer require registration as a Reporting Entity with FIU-IND.
• Cash Payment Limit: Under Section 269ST, you cannot accept ₹2 lakh or more in cash from a single customer in a single day or transaction, even split across bills. Violating this brings a 100% penalty under Section 271DA on you as the seller.

Note: When a jeweller sells an ornament and shows making charges separately on the invoice, it is treated as a composite supply, with gold as the principal supply. The entire value is taxed at the gold rate rather than applying separate rates to the gold and making charges. The 5% job work rate applies to karigar work outsourced by the jeweller, which is a separate transaction.

If your focus leans more toward crafted design work than pure gold trading, here's how to start a jewellery business . It covers design-specific licensing, sourcing, and branding considerations in more depth.

Step 5: Set Up Financial Management

Starting a gold business typically requires ₹10,00,000 to ₹30,00,000 or more for shop setup and initial inventory. Rising gold prices have also increased inventory costs. Since price fluctuations can affect your margins, careful financial management is essential. Here's what to plan for:

• Shop Setup and Security: Expect to spend between ₹1,00,000–₹5,00,000 on setting up your shop and installing strong security. This investment helps protect your gold and build customer trust.
• Initial Gold Inventory: Your first stock of gold will be a major expense, ranging from ₹5,00,000 to ₹20,00,000 or more, depending on your business scale.
• Inventory Management: Keep a close and accurate track of your gold stock. This prevents losses and ensures efficient operations.
• Hedging Strategies: Consider ways to protect yourself against large gold price movements. This helps keep your profits safe from sudden market ups and downs.
• Accounting: Maintain accurate financial records for all money transactions. This is important for taxes and understanding how your business is doing.

Step 6: Source Gold and Materials

Reliable sourcing is crucial. Make sure your gold is genuine and that you get fair prices from trusted suppliers.

• Nominated Agencies: DGFT restricts gold imports to notified agencies. Verify the current list directly with DGFT before choosing an import route.
• Bullion Dealers: Established domestic dealers buy from nominated agencies and resell to jewelers and retailers. This is a practical option if you do not import directly.
• BIS-Approved Refiners: Businesses handling scrap gold or gold dore bars can work with BIS-approved refiners for purification and domestic supply.
• Local Wholesale Markets: Markets such as Zaveri Bazaar offer competitive sourcing options. Always verify gold purity and supplier credibility.

Import rules and sourcing channels can change frequently. Check the latest DGFT requirements before finalizing your sourcing strategy and build reliable supplier relationships.

Step 7: Set Up Your Shop and Facilities

A secure and efficient shop is essential when handling high-value inventory. Plan for the following:

• Location: Choose a safe, accessible location with good footfall. Established jewelry markets and busy commercial areas are usually suitable.
• License: Physical outlets may require Shop and Establishment Act registration. Some municipalities exempt shops below 300 sq. ft. from fire licensing, but requirements vary by state. Confirm with your local fire department.
• CCTV and Camera Placement: Cover entrances, exits, display cases, cash counters, and vault or back-office doors. Keep 30–90 days of footage if required by your insurer.
• Alarm and Access Control: Install door and window sensors, motion detectors, and glass-break sensors. Use access control for vaults and back-office areas to track who enters and when.
• Safe Storage: Store high-value stock in a fireproof, tamper-proof safe or vault secured to the floor. Shop safes can cost around ₹10,000–₹50,000.
• Insurance: Jewelry insurance typically costs 1–3% of insured stock value annually. Insurers may also require specific security measures and footage retention.
• Equipment: Invest in tools for making, testing, and weighing gold, including melting machines, purity testing kits, and precise weighing scales.

Strong security helps prevent theft and supports insurance claims. It also builds customer confidence in your business.

Step 8: Handle Import and Export (If Applicable)

If you plan to trade internationally, obtain an Import Export Code (IEC) and secure any other required registrations. Understand the current import and export duties before planning your costs. These rules can change, so always check the latest requirements.

Step 9: Plan Your Marketing and Sales

Build a strong digital presence and maintain personal customer relationships. Focus on:

• Google Business Profile and Local SEO: Reach customers searching for gold in your area.
• Instagram and Pinterest: Showcase designs, craftsmanship, and bridal collections.
• WhatsApp Business: Share personalized collection updates, offers, and occasion-based messages.
• Festival Campaigns: Plan promotions around Dhanteras, Akshaya Tritiya, and wedding season.
• AR Try-On and Virtual Consultations: Help customers explore jewellery before visiting your store.

Focus on building trust across every customer touchpoint, from online research to the final purchase.

Step 10: Focus on Quality Control and Customer Trust

Maintain strict hallmarking standards and transparent pricing. Hallmarked gold should carry the BIS logo, purity or fineness mark, and six-digit HUID number, which customers can verify through the BIS Care App.

Display your BIS registration certificate and make key details such as purity, weight, making charges, and hallmarking charges clear on every invoice. These visible checks help customers feel confident about the quality and authenticity of their purchase.

Importing and exporting gold in India is highly regulated. The rules have also tightened in 2026, so it is important to stay updated on the latest requirements.

1. Importing

• Gold imports can be made through banks and other authorized channels listed by the DGFT. The latest DGFT Public Notice No. 04/2026-27 lists the banks authorized to import gold and silver from April 1, 2026.
• For gold-only imports, the notification specifically lists Union Bank of India and SBER Bank. It also lists 15 banks authorized to import both gold and silver.
• Since April 1, 2026, certain finished silver products under ITC (HS) codes 71131144 and 71131145 have moved from "Free" to "Restricted" import status. DGFT Notification No. 63/2025-26 applies this change until June 30, 2026.
• Jewellers recognized as " Qualified Jewellers " by the IFSCA can import gold directly. The India International Bullion Exchange (IIBX) at GIFT City offers a separate route from the traditional nominated-agency channel.
• Private businesses outside these routes need an IEC registration, a BIS license , and RBI authorization to import. However, commercial gold imports remain restricted to the eligible categories mentioned above.
• You must also pay customs duties on imported gold. As of May 2026, the effective rate is 15%, including 10% Basic Customs Duty and 5% Agriculture Infrastructure and Development Cess.
• Imported gold also attracts 3% GST. This brings the total tax burden to roughly 18.45% on refined gold. This rate has changed twice in under two years. Verify the current rate before finalizing your import costs.
• Manufacturers and exporters using the Advance Authorisation scheme for duty-free imports now face a cap of 100 kg per license. This limit is effective from May 2026.

2. Exporting

• India actively encourages exporting gems and jewellery, and this remains one of the country's largest export categories.
• Obtain an IEC and follow the specific export rules and documentation requirements set by the DGFT.
• This route can open genuinely large international markets for your products, particularly given India's manufacturing strength in gems and jewellery.

The gold industry requires ongoing attention to regulatory and compliance changes. Import duty has increased from 6% to 15% in under two years. Nominated agency eligibility has also narrowed, and hallmarking rules continue to evolve.

Staying current on compliance is as important as getting your initial setup right. Stay updated on compliance, maintain strong security, offer clear pricing, and build customer trust. These practices can help a gold business grow steadily and build long-term wealth in India.