2. Introduction to venture and
Entrepreneurship
Business venture definition
A new business that is formed with a plan and expectation that financial
gain will follow. Often, this kind of business is referred to as a small business, as
it typically begins with a small amount of financial resources.
Business venture is usually formed out of a need for a service or product that
is lacking in the market.
In economics, entrepreneurship connected with land, labor, natural resources
and capital can generate a profit.
3. Formalities of opening a firm:
1. Checking the Company Name
Availability
Selection of name.
Check the proposed name in the MCA 21
website.
Once the approval is given in website, then
finalizing the Firm Name.
4. Formalities of opening a firm:
2. Acquiring a Director Identification Number (DIN)
(DIN) is a special identification number
Provided by Directors of company that are incorporated
The number can be obtained by filling a DIN-1
application form online.
Then, a printed and signed version of the form must be
forwarded to the ministry along with identity and address
proof for their approval. A permanent DIN is issued after
the verification of the documents and the subsequent
approval of the request.
5. Formalities of opening a firm:
3. Acquiring a Digital Signature
Certificate
A digital signature certificate is an issued
electronic key that validates and identifies the
holder of this certificate.
An application form, identity proof, and
permanent address proof must be submitted by
the company directors when applying for a
Digital Signature Certificate.
6. Formalities of opening a firm:
4. Obtaining an Incorporation Certificate
An incorporation certificate is provided by the Ministry of Corporate Affairs
the following forms must be digitally filed on the official Ministry of Company Affairs
website – e-form 32, e-form 1 and e-form 18.
With form 1 Memorandum and Articles of Association (MoA and AoA), the consent of
directors, and a stamped copy establishing the power of attorney.
The certificate of incorporation will be automatically sent to the e-mail ID
7. Formalities of opening a firm:
5. Creating a Company Seal for official
documentation
A company seal is required to be placed on papers for
sharing certificates and other official documents.
The company official seal is dependent on the number of
words that need to be engraved on it.
8. Formalities of opening a firm:
6. Stamping of all Company Documents
The application to have the company’s
incorporation documents stamped must always
have the unsigned copies of the Memorandum
and Articles of Association attached alongside the
payment receipt for the same. Stamp duty should
be paid online for such documents to the
Registrar of Companies.
9. Formalities of opening a firm:
7. Acquiring a Permanent Account Number
(PAN)
Filing of Form 49A is required for the
application of PAN. Once a unique PAN is
acquired, a physical version of the PAN card
will be delivered to your registered address by
official post.
10. Formalities of opening a firm:
8. Acquiring a Tax Account Number (TAN)
As per the Government of India, a Tax Deduction Account Number
or Tax Collection Account Number (TAN) is a special number
issued by the Income-tax department to all entities that are required
to either deduct or collect tax at the source.
11. Formalities of opening a firm:
9. Obtaining a certificate from the State/Municipal Inspector under the Shops
and Establishment Act
A statement that includes the employer/manager’s names, company’s designated
name and permanent postal address and business category must be provided to
the State Shop and Establishment Inspector along with the payment of applicable
fees. This is a vital step in trade license registration as all companies must be
registered within one month (30 days) of the opening of their business.
12. Formalities of opening a firm:
10. Applying for GST Registration –
goods and service tax
GST registration is mandatory for any
entity seeking to undertake the supply of
goods and services across states while
maintaining an annual aggregate turnover
of more than INR 40 lakhs/20 Lakhs.
13. Formalities of opening a firm:
11. Obtaining a Profession Tax Certificate from the State Profession Tax Office
Every employer (who is not a government officer) is liable to taxation and must
obtain a certificate of registration from the relevant authority. A company is
required to file Form 1 to the State Profession Tax Office to apply for the
Profession Tax Certificate, if applicable.
14. Formalities of opening a firm:
12. Completing a National Employees’ Provident Fund
Registration
Every employer is required to provide their worker information to
the local Employee Provident Fund Organization (EPFO). This
must be done in the prescribed manner so that an Establishment
Code Number (ECN) can be allotted to the company.
16. Location
What is plant location?
Plant location refers to the choice of region and the selection of a particular site for setting up a business or
factory.
The choice is made only after considering cost and benefits of different alternative sites.
Selection criteria
a) Natural or climatic conditions.
b) Availability and nearness to the sources of raw material.
c) Transport costs-in obtaining raw material and also distribution or marketing finished products to the ultimate
users.
17. LOCATION – SELECTION CRITERIA
d) Access to market: small businesses in retail or wholesale or services should be located within the vicinity of
densely populated areas.
e) Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway
stations, airports or sea ports, availability of electricity, water, public utilities, civil amenities and means of
communication are important, especially for small scale businesses.
f) Availability of skilled and non-skilled labor and technically qualified and trained managers.
g) Banking and financial institutions are located nea h) Locations with links: to develop industrial areas or business
centers result in savings and cost reductions in transport overheads, miscellaneous expenses.
18. LOCATION – SELECTION CRITERIA
i) Strategic considerations of safety and security should be given due importance.
j) Government influences: Both positive and negative incentives to motivate an entrepreneur to choose a
particular location are made available.
Positive includes cheap overhead facilities like electricity, banking transport, tax relief, subsidies and
liberalization.
Negative incentives are in form of restrictions for setting up industries in urban areas for reasons of pollution
control and decentralization of industries.
19. PLANT LAYOUT
Definition:
A plant layout can be defined as: Plant layout refers to the arrangement of physical facilities such as
machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest
flow of material at the lowest cost and with the least amount of handling in processing the product from
the receipt of material to the shipment of the finished product.
20. Objectives of Plant Layout
Proper and efficient utilization of available floor space
To ensure that work proceeds from one point to another
point without any delay
Provide enough production capacity.
Reduce material handling costs
Reduce hazards to personnel
Utilize labor efficiently
Increase employee morale
Reduce accidents
Provide for volume and product flexibility
Provide ease of supervision and control
Provide for employee safety and health
Allow ease of maintenance
Allow high machine or equipment utilization
Improve productivity
21. Building
Factory building: The nature and size of the building determines
the floor space available for layout. While designing the special
requirements, e.g. air conditioning, dust control, humidity control
etc. must be kept in mind.
Building structure is based on :- Nature of product, Production
process, type of machineries, Repairs and maintenance,
Human needs, Plant environment.
22. Lighting & Ventilation
Buildings needed openings to ensure the air would move through the
building and keep it cool.
A natural ventilator is an effective way to help bring fresh air and natural
light into a building.
By placing vents to let the hot air out at the ceiling level and intake
openings on side walls at the floor level, air will move throughout the
interior space.
Natural ventilation also provides natural day lighting.
23. Material Handling
Material handling is “the loading, unloading, and movement of goods, as within a
factory or warehouse, especially by the aid of mechanical devices.”
Material handling can be defined as function of moving the material to the right place
in the right time,in the right amount, in sequence, and in right condition to minimize
the cost.
This movement of materials from one processing area to another and from department
to department necessitates the use of much personnel and equipment and the handling
of treatment tonnages of materials.
To manufacture any product, it is necessary either that materials move from one step
of the manufacturing process to another or that operators move to the materials.
25. Availability of Labour
Labor is the amount of physical, mental, and social
effort used to produce goods and services in an economy.
It supplies the expertise, manpower, and service needed to
turn raw materials into finished products and services.
The economy runs most efficiently when all members
are working at a job that uses their best skills. It also helps
when they are paid according to the value of the work
produced. The ongoing drive to find the best match
between skills, jobs, and pay keeps the supply of labor
very dynamic.
