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Small business can make developed India | Company Vakil

India is developing economy and country and many small business in india and industries are establishing. Since independence time, employment has been working as the lifeline of livelihoods. Citizens had opted job’s way to fulfill their requirements.  They didn’t think about small business in India even. They select either job or agriculture as their carrier option. The human mentality was, business is fulfilled with risks & stress. Apart of India, other countries have elected business as their option. They had established many medium & small scale industries to manufacture usable products even their financially week person also planned for business. Financially week person stated household business. With this industrial revolution foreigners made themselves financially stronger, consequently their country become developed and we still on race. Indian’s mentality made developing country.

Company Vakil provides services related to MSME Registration

In this scenario everyone has changed their mentality towards business in india, they actually know to become financially stronger they must start the business, the business can be either small scale or house friendly. The Indian government also knows actual imports of small business in india that’s why there we are sounding many good business schemes. The government actually want to appreciate entrepreneurs, they know human should assist with some financial support then they can’t hesitate about business. The government realizes Indian youths have good skills and innovative brain which can develop some of the unique ideas to develop their self & their country. Business can categories in some streams-

Large-scale business: A large enterprise is an enterprise that checks at least one of the following two conditions:

  • has at least 5000 employees;

This category of business is defined by implementation decree No. 2008-1354 or Article 51 of the law on the modernization of the economy, relating to the criteria which allow for the definition of the class to which a business belongs for the purposes of statistical and economic analysis.

Medium scale business: A large enterprise is an enterprise that checks at least one of the following two conditions:

  • has at least 50 -249 employees;

This definition is provided in Section 7 of Micro, Small & Medium Enterprises Development Act, 2006

Small-scale business: A small business is an enterprise that checks at least one of the following two conditions:

  • has at least 10-49 employees;

House held business: this is house held business applicable for himself, Just need to register for GST.

The following are some of the most common incorporation and compliance services required to operate a small business in India.

LLP registration – A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. Cost under ten thousand for one time.

GST return filing – A return is a document that a taxpayer is required to file as per the law with the tax administrative authorities. Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return.

Trademark Registration – A trademark is a visual symbol, which may be a word, name, device, label or numerals used by a business to distinguish its goods or services from other similar goods or services originating from a different business. Trademarks in India are registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India.

Indian citizens are searching small business scope on house held and small-scale business ideas. Some of best house held business ideas are here-

Coaching & tuition: in this small business in india mostly women are participating. In this scenario, parents are totally involved in their job, business and profession. They want to increase their salary as higher they can. Parents have everything instead of time but they want the best future of their child. So they prefer good tuition & coaching class.

Beauty Parlor: this is also the best option for women to stable their business and explores her qualities and this business no need to invest much amount.

Social Marketing:  it is combining ideas from commercial marketing and the social sciences, social marketing is a proven tool for influencing behavior in a sustainable and cost-effective way. In this time period, human needs 4 important products to survive that are air, food, water and social networking sites. Everyone is on social networking platform, due to this heavy traffic all companies want to promote their product on this platform. Anyone can get this job from freelancer.

Tiffin service: In India food cooked at home with care and love is considered to deliver not only healthy but familiar too. Lunch is usually eaten thali-style, with a tantalizing selection of regional delicacies that may include any combination of spicy vegetables, dhal, rice, pickles, bread and pudding served on a big steel plate or a banana leaf. The separate compartments in the tiffin lunchbox accommodate thali lunches perfectly. Women have the best business opportunity to cook food and spread their taste.

Government’s assistance for business

In this scenario, Indian government have launched some of best schemes to appreciate & assist financially. Some of the good schemes are mentioned below

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)

The government of India launched CGS in order to render collateral-free financial assistance to MSMEs. The scheme is valid for new entrants as well as existing business units throughout the country. A trust was established by the Ministry of MSME along with SIDBI (Small Industries Development Bank of India), named as ‘Credit Guarantee Fund Trust for Micro and Small Enterprises’ (CGTMSE) in order to implement CGS for MSMEs.

The scheme features easy and collateral free credit facilities in the form of working capital finance as well as term loans of the cumulative amount up to Rs. 1 crore per business unit. The contributed amount among GOI (Government of India) and SIDBI is in the ratio of 4:1 respectively. The scheme also caters rehabilitation assistance to existing sick units.

Small Industries Development Bank of India Loan for Small Enterprises (SMILE)

SIDBI established a small business funding schemes in 1990 which has gone quite popular and plays a crucial role in the promotion and development of small business units of the nation. Some of such schemes are described as under:

    Scheme and Equipment Finance Scheme

    Indirect Assistance Scheme

    Mahila Udyam Nidhi (MUN)

    Single Window Scheme

    Integrated Development of Leather Sector Scheme (IDLSS)

    National Equity Fund, Scheme

    FPTUFS – Scheme for Food Processing Industries

    Promotional and Development Activities

    Direct Assistance Scheme

    Technology Development and Modernization Fund Scheme

GOI in association with SIDBI launched a loan program, the SIDBI Make in India Loan for Small Enterprises (SMILE) for MSMEs. SMILE has been allocated with an overall budget of Rs. 10,000 crores. SMILE focuses on 25 sectors under the Prime Minister’s ‘Make in India Vision’ and hence offers term based short-term loans as well as quasi-equity to MSME sector in India with easy rules and regulations.

Company Vakil provides services related to MSME Registration in Mumbai

Credit Link Capital Subsidy Scheme for Technology Up-gradation

To survive the competitive global markets by reducing the manufacturing costs, the Indian industries constantly need to work on upgrading their processes as well as the setup (Plant and Machinery) of the industry. To help the industries do this, the Ministry of SSI (Small Scale Industries) has come up with a technology up-gradation scheme- the Credit Linked Capital Subsidy Scheme (CLCSS). This is done by extending a 15% upfront capital subsidy to SSIs for credit availed to upgrade their respective plant and machinery, and equipment. It must be noted that the maximum amount of subsidy is Rs. 15 lakhs.

National Bank for Agriculture and Rural Development (NABARD)

This scheme was basically launched in order to promote agriculture-based business enterprises in rural areas. Village and cottage industries are the major beneficiaries of NABARD, which aims at their financial assistance. The capital is shared between RBO and GOI which stood Rs. 5,000 crores in March 2015, out of which 4980 crores were held by Government of India.

National Small Industries Corporation Limited (NSIC)

It was launched in the year 1955 aiming to encourage SSIs in India. The major objective of the scheme is to import costly machinery on a hire-purchase basis. The scheme also caters to distribution as well as the supply of both imported and indigenous raw material along with the export of the output of SSIs in the country. NSIC creates awareness in SSIs regarding the latest advancements in the field of SSI. To know more, one can log on to NSIC-FFC portal or visit nearest FFC centre along with loan proposal.

Mini Tools Room and Training Centre Scheme

In order to provide assistance to state governments, the Government of India set up Mini Tool Rooms and Training Centers which offer one tome grant-in-aid as personal financial assistance. To develop more tool room facilities is the mission of the scheme, which ultimately aims at providing technical support to the MSME. The scheme supporting small business in india also caters for the training of public in tool design as well as tool manufacturing in order to create the skilled workforce, engineers, supervisors and designers.

The scheme finances up to 90% of the cost of machinery/ equipment in the case of new mini tool room, subject to a maximum of Rs. 9 crores. In case of upgrading an existing tool room, maximum financial assistance offered is 75% of the project cost, subject to the maximum of Rs. 7.5 crores.

Market Development Assistance Scheme for MSMEs

This scheme facilitates MSMEs in the way of financing for participating in international exhibitions and trade fairs under MSME India kiosk. The scheme is meant for showcasing the power as well as the strengthening of the Indian manufacturing MSMEs. The scheme also finances for sector-specific studies by export councils and industry associations. Hence, the scheme reimburses the one-time registration fees as well as annual fees, paid to GSI for the first three years of the bar code, at the rate of 75%.

Technology and Quality Up-gradation Support to MSMEs

It is aimed at improving the quality of production of the MSMEs by encouraging them to adopt global manufacturing standards. The mission of the scheme is to lean the manufacturing MSME sector towards energy-efficient manufacturing processes and technologies which may ultimately reduce manufacturing costs. It will also help in the reduction of the emission of harmful gases along with other by-products which hamper the atmosphere.

Under the scheme, the Government of India aids up to an extent of 75% of the actual expenditure which is incurred by the manufacturing unit for purchase of eco-friendly and energy efficient technology or process.

MUDRA (Micro Units Development and Refinance Agency Ltd) Loan Scheme

This organization is established by the Indian Government for refinance and development activities related to micro units. ‘Funding the Unfunded’ is the vision of MUDRA. There are three categories of loans under this scheme depending upon the stage of business and unit size. The maximum loan amount is also divided into the same criteria.

  1. Shishu loan- start-ups can be financed up to a maximum of Rs. 50,000
  2. Kishor loan- existing businesses can be financed for a new business ranging from Rs. 50,000 to Rs. 500,000.
  3. Tarun loan- established business units can be financed for expansion ranging from Rs. 500,000 to Rs. 1,000,000.

Low-cost funding is made available to Micro-Finance Institutions. MUDRA loans can be availed under Pradhan Mantri Mudra Yojana (PMMY) through any bank, NBFC or MFI. The rate of interest is as per RBI guidelines.

Stand-Up India Scheme

Launched in April 2015, the scheme Stand-up India was funded with Rs. 10,000 crores by the Government of India. The fund is supposed to be utilized for providing easy, convenient, cheap and collateral free loans to the women, scheduled tribe and scheduled caste entrepreneurs in order to promote micro-enterprises.

    The scheme features granting loans ranging from Rs. 10 lakhs to Rs. 1 crore for setting up a new firm. The project needs to be the green-field project which means no prior finance from any bank or NBFC should have been obtained by the enterprise.

    The scheme features debit cards for withdrawing working capital, comprehensive support to the borrowers and repayment period of 7 years.

    The minimum age required is 18 years. The individuals need to be SC, ST or woman. In the case of non-individual borrowing, at least 51% stake needs to be held by SCs, STs or women.

Conclusion: conclusively this is best supporting atmosphere for start-up of small business in India. We all should exploit the opportunity and pay our best role to make developed India.

This article can be used as a scheme tutorial.For more such articles and related services visit Company Vakil

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