Post on 14-Apr-2018
7/29/2019 Formalities for Setting Up of a Small Scale
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By: Jaspreet Singh and Navdeep Flora
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Strong entrepreneur most vital aspect of successful
project
Suitable project has to be decided. This involves
Product and Service selection
Location selection
Feasibility study
Business plan
Project profile
Selection of a Project
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Entrepreneur has to consider following factors:
Background and experience
Availability of technology
Marketability of product/service
Investment capacity
Availability of infrastructure, plant and raw material
Product or Service
selection
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Some major decisions regarding location selection
are:
Proximity to market Availability of raw material
Transportation and communication facilities
Government policies
Concessions/incentives Power
Drainage/disposal facility
Location Selection
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Project feasibility study
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Feasibility literally means whether some idea will
work or not. We need to do
Market analysis Financial analysis
Technical analysis
Economic analysis
Ecological analysis
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Keep target audience in view
Strategy- core of a business plan
Think competitively throughout
Be realistic
Involve people
Facts
Business plan
preparation
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It acts like a birds eye view on the whole project
Helps in obtaining the Provisional Registration
Certificate (PRC) from District Industries Centre forapplying to industrial area development board forthe land or to SSIDC.
Project profile
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To start an industry the promoter(s) have to decide
on the constitution of the unit. There are four major
alternatives:a. Sole Proprietorship
b. Partnership
c. Corporation/Limited Company
d. Cooperative
e. Franchising
Decide on the
constitution
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Small scale industries should seek registration with
the Director of Industries of the concerned State
governmentObtain a Provisional Registration Certificate. Once
the unit goes into production, the PRC has to beconverted into a Permanent Registration Certificate
(PMT). PRC is necessary for obtaining sources like land and
finances.
Registration
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PMT will help SSI with:
To apply for scarce raw material
For imported raw material
For working capital loans from banks and financialinstitutions
Central excise duty concessions
Tax exemption
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Obtained all necessary clearances like Drug license,
NOC from Pollution Control Board
Not violating any location restrictionsValue of plant and mach. is within limits
Not owned, controlled or subsidiary of otherindustrial undertaking
Basis of evaluation
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For a new project proper planning is necessary. A
detailed report provides such plans for the project.
Major contents of a project report Summary
Company details
Operational details
Project details Project cost
Means of finance
Project report
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www.bplans.com for business plan softwares and
free sample business plans
www.sba.gov information on starting a businesswww.pipdic.com procedure for starting SSI
www.mdifranchise.com discover franchiseopportunities
www.opportunityindia.net identifying new businessopportunity
Websites
http://www.bplans.com/http://www.sba.gov/http://www.pipdic.com/http://www.mdifranchise.com/http://www.opportunityindia.net/http://www.opportunityindia.net/http://www.mdifranchise.com/http://www.pipdic.com/http://www.sba.gov/http://www.bplans.com/