P&L Playbook for eCommerce by ex-SUGAR & Raymond Leader

FAQ – Setting up Logistics and Fulfillment in India for International Brands

FAQs on Logistics and Fulfillment in India for International Brands

1) Can a foreign company directly sign with WareIQ or any 3PL to store stock in India?

No. Indian regulations require that any stock held in a warehouse in India must legally belong to an Indian-registered entity.

  • You cannot sign a commercial agreement with a foreign entity and start holding stock in India
  • The warehouse agreement must be signed with the Indian entity that owns the goods and is responsible for tax compliance
  • This Indian entity could be:
    • Your own Indian subsidiary
    • An appointed distributor or Importer of Record (IoR) acting as the legal owner of goods in India

2) What is the sequence before thinking about GST or APOB?

  1. Decide your India legal structure – Subsidiary, distributor, IoR, or Merchant on Record arrangement
  2. Sign agreements – The warehouse/fulfillment agreement is signed with that Indian entity
  3. Set up GST – The entity must have GST registration in each state where inventory is stored (via APOB)
  4. Then start storing stock – Without step 1, APOB alone does not create a compliant framework

3) What is APOB and why is it important?

APOB (Additional Place of Business) is a GST requirement to list each warehouse location where inventory is stored.

  • Mandatory for compliant invoicing and inter-state stock transfers
  • Only the GST-registered Indian entity can apply for APOB, not the foreign parent

4) Can WareIQ help with GST and APOB?

Yes. WareIQ supports:

  • Guidance on APOB documentation and filing
  • State-wise process support
  • Providing warehouse address letters and utility proofs required by GST authorities

5) What if we don’t have an Indian entity?

Options:

  • Appoint an Indian distributor or IoR to hold inventory and handle GST
  • Start with a pilot via a distributor while you evaluate setting up your own entity
  • WareIQ can introduce vetted distributor and IoR partners

6) Does WareIQ offer Merchant on Record services?

Yes, selectively.

  • If there is a fitment, WareIQ can act as a Merchant on Record, importing your products into India and reselling them to marketplaces, as well as online and offline channels
  • This is a case-by-case arrangement and subject to due diligence and commercial alignment
  • If this is of interest, write to us and we will assess the possibility
  • Click here for more details

7) Can WareIQ act as distributor?

No, our core role is fulfillment and logistics.

  • In most cases, we connect you with vetted distributor partners
  • Merchant on Record is the only scenario where WareIQ itself takes on the inventory ownership and resale responsibility

8) Selling on marketplaces like Amazon, Flipkart, Nykaa

  • GST is required except for specific exempt goods
  • Seller account must match the Indian entity or the distributor’s entity
  • WareIQ integrates your catalog and routes orders to compliant fulfillment centers

9) How does WareIQ help international brands scale in India?

  • Pan-India FC network in 12+ cities for regional inventory placement
  • Compliance support for GST and APOB
  • Marketplace and channel integrations – Shopify, Amazon, Flipkart, Nykaa, quick commerce platforms
  • B2B + B2C fulfillment on the same platform
  • Returns QC with media evidence and claims assistance
  • Control Tower dashboard for orders, inventory, and shipping

10) Typical documents for APOB

  • GST registration certificate of the Indian entity
  • Proof of principal place of business
  • Authorization letter from WareIQ for warehouse location
  • State-specific utility bill or property record (provided by WareIQ)

11) Can WareIQ handle international shipping?

Yes. WareIQ can manage both inbound and outbound international shipping:

Inbound

  • Your overseas vendors can send stock directly to WareIQ’s Indian fulfillment centers
  • You must be a registered seller in India (via your own Indian entity, a distributor, IoR, or approved Merchant on Record arrangement)

Outbound

  • When you receive B2B or D2C orders from outside India, WareIQ can ship directly from our fulfillment centers to over 200 countries
  • Integrated with leading international courier partners for label generation, tracking, and customs documentation

12) Next steps for a new brand

  1. Choose entity setup: own subsidiary, distributor, IoR, or Merchant on Record (if applicable)
  2. Sign warehouse agreement with the Indian entity
  3. Apply for GST and APOB for chosen WareIQ fulfillment centers
  4. Complete integrations and run pilot orders
  5. Scale with regional inventory placement
Harsh Vaidya
Author

Harsh Vaidya

Harsh Vaidya is the Founder & CEO of WareIQ - a Y-Combinator-backed full-stack fulfillment solution catering to the fulfillment & shipping needs of 400+ eCommerce brands across categories. He was previously the Chief of Staff at Pitney Bowes managing Corp Dev & Strategy for $2.4 B SMB BU. He has 10+ experience in Strategy Consulting & SMB tech.

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