Some rules have been framed for MSME industries by the Ministry of Micro, Small and Medium Enterprises, Government of India. Whatever the rules, regulations and laws related to micro, small and medium industries present in the country and this ministry is the supreme body or institution for the formulation of new laws when required. The economic strength, hope and business of every country rests more on the young entrepreneur. The Government of India provides the facility of easy registration to MSMEs, keeping in mind that small and big business organizations do not face difficulties in their business.
Types of MSME
MSME belongs to any of these three categories of industries, micro, small and medium. MSME industry is the backbone of any economy. It acts as an engine to promote equal development and economic development for all. MSMEs are classified according to the capital investment made in the purchase of small and large machinery plants. The Micro, Small and Medium Enterprises Act 2006 applies only to those industries which are working in the manufacturing sector and investing equipment for the services sector companies ie working in the service sector. Following is the description of the three categories of MSME industry: –
- Micro or micro-industry: Micro industry is the smallest institution. Under this manufacturing business, you can invest at least 1 crore in plant and machinery, whose turnover should be 5 crores.
- Small Scale Industries: Under this, 10 can be invested in plant and machinery for the small manufacturing industry, whose turnover should be at least 50 crores.
- Medium Industries: For the medium manufacturing industry, you can invest 20 crores in plant and machinery, whose turnover should be at least 100 crores.
Documents required to be held in MSME Registration
- PAN card copy or Xerox
- Aadhar card, passport, driving license, etc., one of them is required to be present as an identity certificate.
- Passport size photo
- Document of rent agreement if you do industry on rental property
- Document of Deed or Document of Property for Owned Property
- Declaration document
- Two people as witnesses
Method of registration in MSME
- For online registration, go to the portal issued by the Government of India or link http://udyogaadhaar.gov.in/UA/UAM_Registration.aspx and submit the application after filling the Aadhaar number, owner’s name etc. as per the instruction given.
- After that, an OTP ie unique number will come on your registered number or email, which you have to enter in the application and submit the captcha given below in the application and submit it.
- When you start the MSME industry, you have to apply for final registration, after which you are given the final MSME certificate. You can apply for a permanent certificate after the start of production.
- First of all, fill your basic information in an application form with the department for which you are starting an industry, then register it with the relevant documents in the MSME office.
- Before submitting the application and the document, get all the documents certified by an expert, after that submit the application, you can submit the application by going to the District Industries Center in any district where you are starting your business.
- After this, your application will be filed with the MSME registrar along with your document by the department, then the experts will verify it. After the application is approved after verification, you will be issued MSME certificate and you will be informed through courier and email.
It is an agency of the Government of India. “Rita Teotia is the current FSSAI Chairman” FSSAI works to make a distribution, production, storage, sale, sales available for human consumption. Its job is also to ensure that the citizens are getting healthy and safe food. its headquarters is located in Delhi. Was established by the Central Government in 2011 under the FSSAI Act 2006.
FSSAI not only looks after the food items in the country but also the items that are imported from the country.
FSSAI examines the quality of food, a chemical used in food, food colour, fragrance, size, etc. and only if it is correct, through the vendors Is sold in the market. FSSAI also periodically checks the quality of retail and wholesale food items.
Functions of FSSAI
FFSI performs many important functions. Let us know about the functions that come under it.
- It arranges training programs for individuals or entrepreneurs who are involved in food-related occupations.
- Authentication of the laboratory and the accredited laboratory determines the procedure for notification and the FSSAI Guidelines.
- Examining the food that is made by food businesses and to ensure that it is fit for people to eat.
- To build an information network in the country so that consumers, panchayats etc. can get food security and related information.
Such functions are to be done by the FSSAI which is in the interest of the customers.
Types Of FSSAI License
Types of FFSI
State FSSAI License: If your business is more than 12 lakhs but less than 20 crores then you will come under State License. Those who have branches in different states, then you have to get a state license for each one.
Basic FSSAI License: If the annual turnover is between Rs. 0 to Rs. 12 Lakhs, they can apply for it. Under this, all small scale operators come from the same area or city.
Central FSSAI License: This license is for people who have a business of 20 crores and have branches in more than one state. So they come under Central License.
FSSAI License Cost
State FSSAI License Fees
- The FSSAI License Fee is 5,000 for 4 Star Hotel.
- FSSAI License Fee for Food Businesses Operators serving food will be Rs 2,000. College, Office and Institute, including School Canteen, with Caterers, Banquet Halls and Dining arrangements.
- A Manufacture and Miller who produces 1 Metric Ton of Milk or 501 to 10,000 Lpd Milk or 2.5 MP to 500 Metric Ton of Milk has to pay 3,000 rupees every year as FSSAI License Fee.
- A Manufacturers and Miller who produce 501 to 2500 Metric Ton of milk solids every year, from 10,001 to 50,000 Lpd Milk or above 1 Metric Ton per day would have to pay an amount of Rs 5,000 for FSSAI license. is.
- The FSSAI License Cost for Food Business Vendors and other Food Business Operators is 2,000 which includes Clubs, Restaurant / Boarding Houses etc. which serve food.
- The FSSAI License Cost for Renewal will depend on the number of years selected.
- Food License Fees will be 10% of Applicable License Fees for making Duplicate License.
Central FSSAI License
- The new FSSAI Central License has a fee of Rs 7500 which is Annually Fixed.
- Improvement in FSSAI license is 7500 rupees.
- The cost of the FSSAI License for Renewal has been fixed at Rs 7500 per year.
So this was the cost of making FSSAI License, which you have to fill to get these License.
FSSAI License Documents
To obtain the FSSAI License, you must have the following mentioned documents.
- Applicant Passport Size Photo
- Identity cards like – PAN Card, Driving License, Voter ID Card
- Address certificate (Address Proof)
- Declaration Form
- Authority letter with name and address of the person
- Go To Website: First of all, you have to login FSSAI for which this food licensing website. Gotta go in.
- Check Eligibility: First of all you have to check your eligibility on the website. Which category of business do you want to do and which license do you have to take.
- Enter Details: This will be followed by a Page Open. Fill whatever details have been asked of you in this.
- After checking Fee Structure / Document: Eligibility, on the homepage, you will get a link related to Fee Structure and Documents, from where you can take complete information.
- Sign Up FSSAI: Now you have to sign up. Enter your Username and Password. There will be a new page open in front of you, in this you have to fill all your information, and click on Register.
- How To Apply: After this, you will get the option to How to Apply on the homepage, by clicking on it, you can select and apply by selecting one of the Central Licensing, State Licensing, Registration.
Businessmen living in small cities can also do business with the government. The central government has created GeM (government e-market) i.e. online market through e-portal. Through this, all types of shopping will be online. Babus and Middleman will interfere with the purchase process. There are 36,665 buyer associations on this portal. There are 2.5 lakh vendors and service providers. There are over 1 million products. 2,252 startups are connected to this platform. Uttar Pradesh is in the forefront of placing orders. It has placed orders worth Rs 2,636 crore so far. GEM has made the whole process so easy that any enterprise can easily register on this portal and deal with the government and sell their product.
What is GEM
GEM is the government’s e-marketplace. It was launched on 9 August 2016. It was initiated by the Commerce Ministry by closing down the Director-General and Supplies and Goods (DGS & G). Earlier it used to manage government procurement. In its place, GEM is a completely paperless, cashless e-marketplace. Any vendor on this platform can easily register. Being an open platform, there is no barrier here for those doing business with the government. At every step, the buyer is sent an email by email to the head of his organization, the seller. Direct purchase on GEM can be done in minutes as the entire process is online. GEM’s speciality is that it is run by a team of only 50 people. GEM Portal offers over 1 million products. These include everything from office stationery to vehicles. Efforts are also made to include micro, small and medium enterprises in this platform.
According to GEM CEO Radha Chauhan, the GEM platform works quite fast. This saves time. It has also reduced prices by about 25 per cent. Where the vendor registration work was done in 30 days, it takes only 10 minutes. This platform is proving to be very helpful for new startups.
GEM Registration and Document Required
You have to first register yourself on the GEM i.e. government e-market. For this, you will need some important documents. If you want to register on GEM you must have these documents.
– Aadhar Card
– Aadhaar linked mobile number
– SIN, PAN, DIPP, Udyog Aadhaar, Income Tax Return
– Firm Address
– Bank Account
For this, you will have to verify your document within two days. Only then you can sell your product on this platform. At the same time, Gem members will also help to increase your business. You can also register yourself as a buyer or seller by visiting this link. For registration, you will need documents mentioned above along with your personal information
What is Shop Establishment Act
It is a this kind of Act where it is going to decide payment wages, holidays, Service Rules, Ect many more thing which is in the favour of labour. This act comes under the Labour Act where the government gives some liabilities to the labour. All business is going to connect this Act. Apart from this, there are also societies, charitable trusts, educational institution. However, this rule does not apply to the factory.
Important things related to it
(1) If you are starting a shop, you will have to file for registration under this Act within 30 days of the commencement of your establishment. This registration is mandatory for several reasons including opening a current account with the bank. . This license is made as a basic license and proof of your business to apply for other registration required to run a business in India.
(2) It is necessary to keep the details of the hours of daily and weekly work.
(3) Rules for the work of women and children
(4) In this, all the rules have been set for the business and those working in it.
(5) When a person opens a shop or does any business, he is legally responsible for his debts and losses. But in the registration of shops and establishment, your personal property is not included in that business. Meaning that if there is any loss, then your house and other property will not be affected.
Limited Liability Partnership
LLP stands for Limited Liability Partnership which is categorised as an organization for entrepreneurs that includes the concern of profit for both the partnership firm and the company in a single form of organization.
Features of Limited Liability Partnership (LLP)
- It has its own authorised entity just like companies
- The accountability of each associate is limited to the contribution made by the partner
- Forming LLP is affordable
- Minimum capital contribution is not needed.
At least 2 partners have to be there formating LLP out of which one should be resident of India while no upper limit defines the maximum number of associates. The responsibilities of the designated partners will be according to the LLP agreement. And they will be under provisions of LLP Act 2008 specified by LLP agreement.
Process of Registration as LLP
- Get DSC
- Apply for DIN
- Reserve your Name
- Incorporation of LLP
- File LLP agreement
Documentation to Register as LLP
- ID Proof of partner
- Address Proof of partner as well as of Registered office
- Photograph of partner
- Passport ( in case of Foreign/NRIs)
- Digital Signature of certificate
Time Involved in Registration
The whole procedure of LLP takes approximately 15-20 days provided the associates with all necessary documents.
A Partnership is an essential business organization between peoples that collectively forms a business whose profit is shared among agreed ratio.
Criteria for naming Partnership firm
- The name should not match to an already present firm doing a similar bit of work.
- The name must contain words that show sanction or approval of the government.
Details required in the partnership agreement (deed)
- Name of firm, of all partners and address, must be mentioned.
- Profit/loss sharing ratio among partners must be predetermined.
- Interest on capital invested or any loans provided by partners to the firm must be in knowledge of all the associates.
- Rights, duties and obligation of all partners should be thoroughly informed.
- Partner must be aware of the processes followed on accounts after the retirement or death of a partner.
- If any other clauses found partner must solve by mutual discussion.
Documents required for registration
- Application for registration of partnership
- Prof in form of Affidavit
- Original copy of Partnership agreement
- Prof of business place
If Registrar found all the documents fine, he will complete the process in the register of firm and issues a Certificate of registration.
The Register of Firms contains up-to-date all the required information so that anybody upon payment of certain fees can go through them.
Proprietorship is also known as a sole proprietorship. It means – ‘the ownership of a person’. Only one person is a business owner. All the business-related work and control is in his hands.
Sole proprietorship aims at profit-making. The owner has to bear the loss in case of loss. He benefits when there is a profit. He arranges all his resources in a planned manner.
What is proprietorship?
Ownership in a sole proprietorship is unlimited. In the event of loss, he has to pay the borrowings by selling his personal property and assets.
No share in profit and loss
In a sole proprietorship business, only one person is the owner. Therefore, he has to bear the loss profit. There is no other partner.
Secrets of trade alone
In a sole proprietorship business, only one person is the owner. He is the owner of all the assets associated with the business. Business can be terminated after the death of the owner or by his will.
Easy to setup
It is easy to establish a sole proprietorship business, as it is owned by a single person, so the legal formalities are also less. Starting a business with more than one partner requires more legal formalities.
How to register for Sole Proprietorship How to register for Sole proprietorship?
- Choose a business name (the name from which your business will be started) such as Haldiram Snacks Pvt Ltd
- Choose a place to start a business.
- To get paid in the name of the business, you have to open a current account in the bank. Along with this, you will have to show proof of your business so that the bank knows that your business is truly dynamic.
- You have to get a PAN card for your business and also have to provide address proof (Pan card and ID for address proof of proprietor) For business address proof, you can also get electricity bill or registered rental agreement in your name. can give.
- Documents such as registration of your industry, license, service tax registration, VAT / GST (registration documents confirming name and address of the business, shop establishment license, service tax registration, VAT / GST etc.) will have to be given.
- You must also give a certificate given by CA (Chartered Accountant). (CA Certificate)
Private Limited Registration
It means a private limited company or a privately formed company. Private company can have minimum 2 members and maximum 200 members. The shareholders of the company are the owners of the company. Private limited company is not listed in Stock Exchange . Private Limited Company Registration Charges vary according to the package.
Private Limited Company Registration Documents
If you are registering a private limited company, then it is necessary to put some necessary documents.
- A passport size photo
- Pan card copy
- name of the company
- Business address proofs like- electricity bill , telephone bill, tax bill, gas bill
- Voter ID Card
- Aadhar Card
- driving license
- Rent agreement copy
How to do Register Private Limited Company?
Some steps are required to be followed for registering a private limited company. You can do Private Limited Company Registration with these steps.
Step 1: Apply For Director Identification Number (DIN)
First of all, you have to apply for the director number, which is received from the Ministry of Corporate Affairs (MCA). The online application of DIN can be made on the MCA website.
Step 2: Apply For Digital Signature
Organizations authorized by the Government of India, such as e-Mudra, Sify will have to get Digital Signature done.
Step 3: Check the Name Availability at MCA’s Website
Go to the MCA website and check if the company name is available. The name you need to apply is available or not.
Step 4: Fill Up the Form
Now the Private Limited Company Registration Form has to be filled. Go to the website of www.mca.gov.in and log in. Then E-form 1A is to be filled. Perform a digital signature by depositing fees with it.
Step 5: Draft MOA and AOA for Company Registration
Now MOA and AOA registration have to be done. After this, the company has to submit Form 1 from Service Request Number. For this, log on to the website given above. Submit MOA and AOA.
Step 6: Submit MOA and AOA
Annexure is to be submitted. It should have the same information as MOA and AOA.
Step 7: Submit Power Of Attorney
Now the power of attorney has to be submitted.
Step 8: Declaration Of Registered Office
Now Form no. Declaration of the company’s registered office has to be given in 18. Which should be the signature of the director, company secretary or managing director.
After this, Form no. Along with the digital signature of the registered director, managing director, secretary in 32 and submit their complete information in this form.
Director Identification Number
DIN a unique 8-digit Director identification number with lifetime validity given to any person who will be a director or is already a director of a company.
If a person is director of a number of companies, then also he will have only 1 specific DIN.
Usage of DIN
Whenever a director signs a return, an application or any other company-related information under any law he has to undersign his DIN number while submitting it.
Procedure for applying DIN
Applying for DIN needs to fill the following related e-forms and they must be digitally signed and uploaded on the MCA21 portal :
- SPICe Form- If the director of a new company is applying then has to mention in this SPICe form only.
- DIR-3 Form- Person intending to be a director of an already existing company then has to mention through this form.
- DIR-6 Form- Amendation if required in any particulars of the directors has to be filled in form DIR-6.
Important documents to be attached
- For SPICe– ID and Address proof.
- For DIR-3– Photographs, ID proof, residence proof, proof for verification.
(Foreign Nationals has to submit their passport.)
- For DIR-6– If changes need in form 1 and 2, then along with the form attested supporting documents are also to be submitted.
This company preferably comes under the group of Non-banking Financial Company (NBFC) that do not owe its RBI license. Nidhi Company can receive deposits and lend out loans only to its members.
It is also known as Mutual Benefit Company that shares the skill of saving and efficiently utilizes the fund among its members. Nidhi Company can not make a deal with any person until he is a member of this company.
- Minimum 3 Directors, 7 shareholders
- Minimum capital investement of 10 lacs.
- DIN for all directors
- Maximum shareholders should be200
- Net owned funds deposit ratio must be more than 1:20
Step:1- Apply for Digital signature and Director PIN number for Nidhi Company.
Step:2- File for approval of company Name (with 3 names) one will be selected by the Nidhi Company.
Step:3- Draft Memorandum of Association and Article of Association with MCA.
Step:4- Get an Incorporation certificate as a proof of registration by Nidhi company.
Step:5- Build an application for PAN, TAN and bank account.
This registration process can also be done by applying electronically or SPICe form in Form INC-32, with eMoA in Form INC-33 and eAoA in Form INC-34.
- Udyog Aadhar Registration (MSME)
- FSSAI Licence (Traders For 5 Years) (Delhi)
- FSSAI Registration (Excluding Govt. Fees)
- FSSAI License Processing Charges (Excluding Govt.Fees) / Renewal
- Gem Registration
- Registration Under Shop & Establishment Act (excluding Govt. fees)
- LLP Formation (Excluding State Stamp Duty)
- Partnership Registration
- Proprietorship Registration
- Director Identification Number (DIN)
- Charitable Trust Registration (Delhi)
- Tax Deduction Account (TAN) Registration
- Compulsory Conversion of OPC into Private Limited Company
- Conversion of Private Limited into Public Limited
- Conversion of Private Limited Into OPC
- Voluntary Conversion of OPC into Private Limited Company
- Nidhi Company Registration
- Section 8 Company Registration
- OPC Registration (Excluding Stamp duty)