GOVERNMENT SCHEMES FOR SMALL SCALE BUSINESSES IN INDIA

GOVERNMENT SCHEMES FOR SMALL BUSINESS IN INDIA

• The Credit Guarantee Fund Scheme for Micro and Small Enterprises

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to provide collateral-free credit to Indian MSMEs. Both the existing and the new enterprises are eligible for the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the scheme.Company formation services in India

• Credit Link Capital Subsidy Scheme for Technology Upgradation

Upgradation of the process as well as the corresponding plant and machinery is important to help SMEs reduce the cost of production and remain price competitive in the global market. To help SMEs flourish in international trade markets, the Ministry of Small Scale Industries (SSI) runs a scheme for technology upgradations of Small Scale Industries. Known as the Credit Linked Capital Subsidy Scheme (CLCSS), it aims at facilitating technology upgradations by providing an upfront capital subsidy of 15% (limited to maximum Rs.15 lakhs) to SSI units for credit availed by them for the modernisation of their plant and machinery. All sole proprietorship, partnership firms, cooperative, private and public limited companies are eligible for this scheme. Since the inception of this scheme, more than 28,287 units have availed subsidy of Rs.1619.32 crore. Company formation in delhi

• Small Industries Development Bank of India (SIDBI)

Small Industries Development Bank of India (SIDBI) started its small business funding programs way back in 1990. Established by an act of Parliament, SIDBI is now one of the most illustrious names among the government financial institutions. This loan has played an active role in the promotion and development of the small business industry. Company formations Procedure in India

• National Small Industries Corporation Limited (NSIC)

National Small Industries Corporation Limited (NSIC) came into effect in the year 1999 with an objective of encouraging the small scale industries in the country. The prime feature of NSIC is to import machines on hire-purchase terms. It lay emphasis on supplying and distributing both indigenous and imported raw material as well as on exporting the products of small business units. Besides, it also creates awareness of advancements occurring in the field of small scale industries. New Company Registration in delhi

• National Bank for Agriculture and Rural Development (NABARD)

National Bank for Agriculture and Rural Development or NABARD came into existence mainly for promoting agriculture-based rural business enterprises. NABARD mostly offers financial assistance to small scale industries viz; cottage and village industry. New Company Registration in india

• Market Development Assistance Scheme for MSMEs

To help Indian manufacturing SMEs gain traction in the international markets, the Market Development Assistance Scheme for MSMEs offers funding for participation in international trade fairs and exhibitions under MSME India stall. It also offers funding for sector-specific market studies by industry associations, export promotion councils, and FIEO. This scheme offers reimbursement of 75% of a one-time registration fee and 75% of annual fees (recurring) paid to GSI by SMEs for the first three years for the bar code.To know more 

• Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises

This scheme aims at sensitizing the manufacturing MSME sector to use energy efficient technologies and manufacturing processes in order to reduce production cost and emissions of harmful gasses. The scheme also aims to improve the product quality of MSMEs to encourage them towards becoming globally competitive. For this, the Government of India provides financial support to the extent of 75% of the actual expenditure to help to manufacture MSMEs buy energy efficient technologies for production.To know more 

• Mini Tools Room and Training Centre Scheme

To assist state governments set up Mini Tool Room and Training Centres, the Government of India provides financial assistance in the form of one-time grant-in-aid. The financial aid equals to 90% of the cost of machinery/equipment (maximum to Rs. 9 crores) in case new Mini Tool Room has to be created and 75% of the cost (maximum to Rs. 7.50 crore) in case an existing room has to be upgraded. The main objective of this scheme is to develop more tool room facilities in order to provide technological support to the MSMEs and training facility in tool manufacturing and tool design to create a workforce of skilled workers, supervisors, engineers/designers, etc.To know more  

Foreign Investment deas

It is a very common belief that starting a business in India requires huge amount of investment. But not all businesses require too much investment. India is a land of opportunities and one can start a business with low investment or even no investment. You can start a business in India with a nominal amount of investment and grow your business. India has a rapidly growing economy and has a massive population. In this article we will discuss some ideas for business start-up in India.

• Home canteen: Running a home canteen requires low investment in business. Off late, the business of food supply has gained a lot of popularity. It is a profitable small-scale business. You can start a business in India with a nominal amount of investment and grow your business.

• Dance instructor:You can work as a dance instructor and this does not require a whole lot of money. You can open your own school or work as a freelance dance instructor. Since dance forms an integral part of Indian culture, many parents like their kids to learn dance from a very early age. Therefore, there are plenty of opportunities for a dance instructor to earn both fame and money.

• Fashion designing:If you are good at art and like fashion, then fashion designing is the best choice. In order to make the most sought-after outfits you will have to undergo training in this field.

• Data entry jobs:This job does not require huge investment. If you have a computer at home and internet connection, you can start a data entry company. Filling up forms online is a popular example of data entry jobs on the Internet.

• Homemade chocolates:Making chocolates in your home is amoneymaking business. You just have to get the ingredients that are essential to make chocolates at home. After preparing the chocolates, pack them with fancy wrappers to add creativity and make them more attractive.

• Event management:It is a cost-effective business for people who are interested in organising different types of events and functions.

• Wedding consultant: In India, weddings are big events and take a lot of time. You can work as a wedding consultant to make things simpler and manage them for people who just don’t have the time to do it for themselves.

Apart from this there are many small-scale businesses that require low investment. Business opportunities in India are tremendous.

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Tax Consultancy Services in India

Income Tax and Service Tax are liable to be paid on income earned from blogging in India. In this article, I would mainly be focussing on the manner in which income tax is levied on blogging and in my next article I’ll try to explain service tax on blogging. The manner of computation of Income Tax has been explained in detail below in this Article.

Benefit of filling Income Tax

The most important benefit of paying taxes and filing your income tax return is that only the income disclosed by you in your income tax return is considered your true income. If you are required to show your income at any place in future, only the amount disclosed in your income tax return would be considered as a valid proof of your income.

Moreover, even if you apply for any Loan from a Bank, you are mandatorily required to show them your income tax return and only the income disclosed in this income tax return would be considered as a valid source of income.

Computation of Income Tax in India/ Tax Consultancy

Any person earning income from any source is liable to pay income tax as per the tax rates prescribed by the govt. While computing the income on which tax is to be paid, the total of all Incomes earned by a Blogger are to be taken into account. You are requested to note that Income Tax is not payable on the Total Revenue earned but is payable on the Total Income earned. Total Revenue is the Gross Amount received and Total Income is the amount earned after Depreciation and Payment of Expenses incurred for the purpose of earning the Revenue.

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Starting Business in India

These days, most people want to start business in India. From foreign nationals to NRIs to Indian residents, many people are looking at investing their money in India. There are two reasons behind this trend.

One is because the Indian economy is growing at a fast pace and in the near future it has potential to grow more. The other reason is because India is a diversified country and hence it is the most favoured location for doing business. Being a diversified country, India offers different routes of investment to its people.

The most suitable for of entity for carrying out business in India would be to form a private limited company. The formation of a private limited company takes approximately 12-15 working days after receipt of the necessary documents.

In this article, we will discuss the procedure of forming a private limited company in India.

The minimum requirement to start a private limited company:

• Identify the directors of the company (minimum of 2 directors should be present and maximum of 8 is allowed).

• Minimum 2 shareholders

• Minimum capital of the company should be INR 1,00,000/-

• DIN (Directors Identification Number) for both directors. If you do not have one, you can apply for it online

• Digital signature of all directors

• Reservation of the name of the company (You can submit 5-6 names in the order of which you prefer. Based on

 availability, you get your company name)

• Apply for incorporation of company

• Consent from subscriber to director

• Preparation of documents such as Memorandum of Association.

• Filling documents with authorities

• Liaison with the authorities and correction

• Proof of registered address

• NOC from the owner of the premises

• Getting final certificate of incorporation

The procedure:

• The most important step in forming a private limited company is applying for DIN. Only directors that do not have

 this need to apply. They need to submit the form to the central government with a fee of rupees1500 per director.

• Obtaining digital signatures is the next step. The director has to apply for the digital signature certificate. This is 

necessary to file company registration documents.

• Submit 5-6 preferred names for your company in order of the most preferred. Check for name availability.

• Apply for name availability to the concerned ROC.

• Once the name has been approved, you need to apply for incorporation of the company. For this, you will have to

 prepare a Memorandum of Association that details company operation and list of directors.

• Once it is approved, make at least 10 copies of Certificate of Incorporation and Memorandum of Association and 

have it in a booklet form.

• You will then have to fill various forms in the ROC.

• You will have to submit proof of registered address (pan card, voters id)

• Filling fees for final documents

• Other government expenses

• If the registrar is satisfied with all the requirements that have been compiled by the company, they will issue 

certificate of incorporation. The date mentioned on the certificate is the date of incorporation of the company.

• Lastly, you can open a current bank account in any leading bank to carry out your operations.

Therefore, formation of a private limited company is not that difficult as it seems. If you lack the expertise to do it on your own, you can always take the advice and assistance of professionals. Roughly, formation cost of a company should be INR 25,000.

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