Formalities for Setting Up of a Small Scale

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
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Formalities for Setting Up of a Small Scale

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