Advantages of MSME Registration

Advantages of MSME Registration

Advantages of MSME Registration

Not every company can be as large as TCS, Infosys or Reliance. There are thousands of other companies that do not fall under the category of large companies. In fact, you can count these large companies on your fingers but not the small or medium ones. MSME stands for Medium, Small and Micro Enterprises. This bifurcation is recognized by Government as well as tax authorities. Recently, in Budget 2017-18 the Modi Government also decreased income tax on such companies to 25%. We learn here Advantages of MSME Registration, MSME registration is not mandatory and neither its statutory but it has its own advantages.

MSMED Act

The definition of medium, small and micro companies is given under Medium Small Micro Enterprise Development Act, 2006. MSMEs constitute the biggest part of our country's economy. Even Sensex and Nifty has a separate index for medium and small listed companies, named MidCap and SmallCap. According to Government survey MSMEs contribute to 40% of industrial production and 45% of exports.

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Benefits of MSME Registration

Through its growth policies the Government is trying hard to support MSMEs. To avail those benefits you must first register yourself as an MSME. 

  • Credit Guarantee Scheme: According to this scheme MSMEs are extended a loan up to ₹1 crore to MSMEs wherein Central Government takes the guarantee of the borrower. So if you have an investment plan or want to diversify your business the Government is here to help you.
  • Tax Benefits: MSMEs are also extended tax benefits from time to time. Recently income tax was also reduced from 33% to 25% for financial year 2017-18.
  • Subsidies: From time to time Central as well as State Governments roll out subsidies to promote MSMEs. Even SIDBI offers loans at subsidised rates to MSME industries.
  • Banking benefits: The Modi Government recently introduced a corpus fund of ₹10,000 crores for small and medium businesses under MUDRA Scheme wherein they could borrow maximum of ₹10 lacs at low interest rates to fund their working capital.

Apart from these there are various other cash and non-cash benefits bestowed upon MSMEs by Central and State Governments. Get your enterprise registered today and avail numerous benefits.  

With introduction of GST there won't be any need of Central Sales Tax as all inter and intra state sales, as a given product will be taxed at the same rate.

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What is the Process of FSSAI Registration?

The Process of FSSAI Registration

What is The Process of FSSAI Registration?

FSSAI stands for Food Safety and Standards Authority of India and every entity involved in food business of any kind must mandatorily get registration done under Foods Safety & Standards Act, 2006. The Act was introduced solely to improve the food quality by keeping a close watch on the quality and hygiene standards maintained by the firm. The Process of FSSAI Registration, According to the Act no business entity engaged in manufacturing, packaging, processing or distribution of food products must commence business unless it has been allotted an FSSAI license. 

Registration procedure

To apply for the FSSAI license you must first check your eligibility as a food business operator. If you are eligible you must the  apply for the license. The license application must be submitted with the Authority in the prescribed format, that is, Form B. The registration is done under three categories, viz.

  • License for a single-state business with a turnover less than ₹12 lacs
  • License for single state medium sized businesses with turnover less than ₹20 crores but more than ₹12 lacs
  • Central license from entities having turnover more than ₹20 crores

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In case a company wants to open outlets in more than one state, then it must obtain a central FSSAI license for its registered office and state license for every individual outlet. The application for FSSAI license can be prepared using a lawyer or professional's help. The application must then be submitted with the FSSAI licensing office. Along with the application all the essential documents must be attached and submitted. If all goes as per the procedure, it won't take more than 20-22 working days to get a license.

The documents that must be submitted along with the application are photo ID and ID proof of proprietor/ directors/ partners along with address proof of registered office or outlet and that of proprietor/ directors/ partners. The applicant should also submit list of food items he will manufacture, process, package or sell accompanied with complete food analysis report.

Normally, FSSAI license is valid for 1-2 years post which it must be renewed. Once the 14-digit FSSAI registration is received it must be printed on all the food items manufactured or packed by the applicant. 

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Starting a Restaurant Business in India

Starting a Restaurant Business in India

Starting a Restaurant Business in India

Starting a restaurant business requires capital and acumen. It looks simple from the outside but requires hard work and proper management. There are a variety of restaurants and you have to choose which is best for you. At some point of time in our lives we all want to open a restaurant or own a franchise of a leading food chain. To starting a restaurant business in India you need to follow the following steps:

Pledge Capital

A business’ success and failure depends upon the money you are investing in it. Money is the blood in a business and if there is a constant supply it will survive and even thrive. Before starting a restaurant you need to pledge the amount of money you are ready to invest. Restaurants do not become popular overnight.

They need time to establish themselves. The money you are ready to invest must be divided into two parts, viz. fixed capital and working capital.

You must choose a model as per the capital you can invest. For instance, if you have Rs. 10 lacs or less than opening a kiosk or taking up a small franchise is advisable. Restaurants require frequent inflow of cash and you must have enough to see it through.

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Form a company

Company is undoubtedly the best form of entity. Form a company and start a restaurant. Purchase a place in the name of the company. A company provides limited liability and can accept loans which other form of entities like partnership and sole proprietorship cannot. You also need to apply for a service tax number and TIN number, as both a levied on selling of food.

Register your Trademark

Registering a company does not imply registering a Trademark. Trademark or tradename is the identity of your restaurant. It carries a goodwill of your business. Trademark enables you to give out franchisees to others or open more restaurants in the same name. I am sure you have heard of number of restaurants named as ‘Farzi’ café, Social, MyBar etc. all these restaurants will have a trademark which can be further leased and cannot be copied by others.

Quality

People are often attracted to quality services. In restaurants cleanliness and hygiene play an important role. You need to maintain adequate sanitization to prevent food poisoning and other related diseases.

Secondly, restaurant business runs on taste. If you can provide food that will make the taste buds want for  more then in no time you’ll become the most popular restaurant.

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What are the Benefits of One Person Company ?

What are the benefits of a One Person Company image

What are the Benefits of One Person Company?

One person company (OPC) is a unique concept introduced by Companies Act, 2013. A one person Company is a company that has only one member. One person company registration is simple and doesn't take much time. It is like a sole proprietorship but in form of a company. Infact, the concept of One Person Company was introduced to give a more formal structure in place of Sole Proprietorship.

An OPC requires only one member who is also the director of the company. The member starting OPC needs to appoint another person as a nominee, so that he can take over the affairs of the company in case of death or incapacity of the former. A company registered as OPC also writes private limited company after its name. The benefits of One Person Company forming are:

1. Less Compliances

As compared to a Private Limited Company and Public Limited Company, One Person Company has to comply with less provisions and statutory compliances. For instance it doesn't have to compulsorily hold Annual General Meetings and may not hold even a single Annual General Meeting. It exercises relaxation for Sections 100 to 110 of Companies Act, 2013 which private or public companies don't.

2. Can accept foreign funding

Unlike sole proprietorships and partnerships, one person companies can accept foreign direct investment. They can receive foreign investment and can also do overseas direct investment. This is an important relaxation given to the One Person Company wherein investment to and from India directly to a small business is allowed.

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3. Can accept debt

One person company can accept debt and apply for loans with financial institutions which partnership firms and sole proprietorships cannot. As compared to them OPC gets better and prompt banking facilities. Since it enjoys separate legal entity it can even role out debentures and accept funding in form of debt.

4. Limited liability

In case of one person company member or director has limited liability as the liability lies upon on the company. The business is done in the name of company and members are liable only up to the amount of shares they hold. Unlike OPC, in sole proprietorship and partnership liability is unlimited.

5. Separate entity

One person company is an artificial person that is different from its owner's. It is a separate legal person and has its own identity, like PAN CardCompany Identification Number, etc.

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