In India, as per a notification issued by the Ministry of Small Scale Industries (govt. of India) in October 2006, a small business or enterprise is that business set-up which employs 50-100 workers, and has made investments up to INR-5Crore in its plant and machinery (excluding land and building costs). The minimum amount of investment in any small business must be greater that INR-25 Lakhs. Those enterprises which invest less than or up to INR-25 Lakhs in their respective plant and machinery, are termed as the micro enterprises.
The micro and small enterprises (MSEs) sector play a very significant and outstanding role, in the industrial output of any progressing country, in a massive employment of its people and professionals, in country's total exports, and in the contribution to the national GDP every year. In India, the MSEs sector accounts for about 40% of India's manufacturing output every year, about 33% of India's exports, and employs more than 30 million people. Our reputed law firm which has been helping individuals, investors, and companies regarding their all types of company formations in all across India and abroad, essentially supports entrepreneurs in setting up small businesses in any desired industrial or commercial field.
Process of Starting a Small Business in India
In India, the sector of MSEs has been ever-growing, with inception of more and more businesses every year in diverse fields. The most prominent and profitable fields for setting up small businesses in India at present are --- food products, non-metallic mineral products, metal products, wood products, basic metal industries, computer software and hardware, chemicals and chemical products, tools and machinery parts, paper products and printing industry, hosiery and garments, rubber and plastic products, and so on.
- In India, for registration of any small business, the immediately concerned governmental bodies are Directorate or Commissioner of Industries in the relevant State of India, and the District Industries Center (DIC) in any district of the State.
- The process of starting a small business in India, essentially covers the tasks of business planning, market research, making registration with any of these governmental bodies, receiving financial assistance from governmental bodies of industrial or commercial banks, establishment of production infrastructure, hiring workforce, and making all arrangements for distribution and marketing of the produced products.
- In every State of India, there are two categories of registrations for small scale industries. One is for obtaining the Provisional Registration Certificate (PRC), which is valid for a period of five year; and the other is for the Permanent Registration Certificate, that lasts as long as the business runs.