Is this foreign brand fulfilment model legally viable in India? (GST/FEMA/Import question)
I'm stress-testing a business model and would appreciate feedback from anyone with experience in international e-commerce, imports, payments, tax, or cross-border trade.
Proposed model:
- A foreign D2C brand continues to operate its existing international website.
- We import inventory into India under our own IEC on a consignment basis.
- Indian customers place orders on the brand's website.
- The India storefront uses our payment gateway to collect payments from Indian customers.
- Orders are fulfilled domestically from inventory stored in India.
- We charge storage, fulfilment, and handling fees.
- The remaining amount is remitted to the foreign brand periodically.
The idea is to help smaller foreign brands test the Indian market without establishing an Indian entity, warehouse, or local operations team.
My main concern is identifying legal or regulatory issues before spending time building this.
Some questions:
- Can inventory legally be imported on a consignment basis and sold in this manner?
- Are there FEMA or RBI restrictions on remitting sale proceeds (after deducting agreed fees) to the foreign brand?
- Could payment gateway providers object to processing orders for products marketed under another company's website and brand?
- Are there any major compliance issues that would make this model impractical?
Not looking for formal legal advice—just trying to understand where the biggest regulatory risks or blind spots might be.
Any insights, examples, or experiences would be greatly appreciated.