Within a business, the managing director oversees daily operations to accomplish goals set by the board of directors, while the CEO provides the overall strategic vision. Both are top executive roles, with the managing director focused on operations and the CEO on goals and strategy. An auditor examines a company's accounts and provides an annual report to shareholders on the company's financial position. Auditors must be qualified chartered accountants and have rights like access to records and attendance at shareholder meetings to perform their examination. They have duties like inquiring about transactions and reporting on financial statements, and can be removed by shareholders or resign.
The document discusses the key aspects of a company's memorandum of association and articles of association under Indian law. It notes that the memorandum of association is the primary constitutional document that establishes a company's name, objectives, capital structure, and liability of members. It outlines the typical clauses included in a memorandum. The articles of association are the secondary document that governs a company's internal management and administration. It provides details on typical matters covered in the articles such as share capital, directors, meetings, and winding up of the company.
The document discusses oppression and mismanagement in companies under Indian law. It defines oppression as a violation of fair dealing standards that shareholders are entitled to expect. Mismanagement refers to gross misconduct that substantially harms the company. The National Company Law Tribunal (NCLT) was established to handle disputes related to oppression, mismanagement, and other matters. NCLT has the power to order investigations, allow the conversion of public companies to private, and other functions to prevent the oppression of shareholders.
This document discusses key accounting concepts and principles, including:
- Accrual accounting, which states that transactions should be recorded in the period they occur rather than when payment is received/made.
- The matching principle, which requires expenses to be matched with related revenues in the same period.
- Use of estimates and judgments in accounting when items cannot be exactly measured.
- The prudence concept, which requires that losses are recorded and gains are not overstated.
- Additional concepts like substance over form, going concern assumption, accounting entity, time period assumption, and GAAP.
The Slideshow discussed Indian Companies Act 2013. It talks about Meaning of a company, kinds of companies, formation of a company, memorandum and articles of association, prospectus - contents and types, company directors and their appointment, removal, powers and duties, meetings of the board, winding up of a company.
This document discusses the different types of meetings held in companies. It describes statutory meetings, annual general meetings, and extraordinary general meetings that are held for shareholders. It also discusses board meetings and committee meetings for directors. Special meetings include class meetings for different types of shareholders and creditors meetings. The document provides details on the definition, purpose, notice requirements and proceedings of these various company meetings.
Corporate digest magazine august, 2017 by venture careKumar Kanaujia
Corporate Digest is a monthly e-magazine published for India Business owners by www.venture-care.com. It contents latest trends and expert opinions on Business, Strategy, Technology, Digital, Finance and Legal.
Within a business, the managing director oversees daily operations to accomplish goals set by the board of directors, while the CEO provides the overall strategic vision. Both are top executive roles, with the managing director focused on operations and the CEO on goals and strategy. An auditor examines a company's accounts and provides an annual report to shareholders on the company's financial position. Auditors must be qualified chartered accountants and have rights like access to records and attendance at shareholder meetings to perform their examination. They have duties like inquiring about transactions and reporting on financial statements, and can be removed by shareholders or resign.
The document discusses the key aspects of a company's memorandum of association and articles of association under Indian law. It notes that the memorandum of association is the primary constitutional document that establishes a company's name, objectives, capital structure, and liability of members. It outlines the typical clauses included in a memorandum. The articles of association are the secondary document that governs a company's internal management and administration. It provides details on typical matters covered in the articles such as share capital, directors, meetings, and winding up of the company.
The document discusses oppression and mismanagement in companies under Indian law. It defines oppression as a violation of fair dealing standards that shareholders are entitled to expect. Mismanagement refers to gross misconduct that substantially harms the company. The National Company Law Tribunal (NCLT) was established to handle disputes related to oppression, mismanagement, and other matters. NCLT has the power to order investigations, allow the conversion of public companies to private, and other functions to prevent the oppression of shareholders.
This document discusses key accounting concepts and principles, including:
- Accrual accounting, which states that transactions should be recorded in the period they occur rather than when payment is received/made.
- The matching principle, which requires expenses to be matched with related revenues in the same period.
- Use of estimates and judgments in accounting when items cannot be exactly measured.
- The prudence concept, which requires that losses are recorded and gains are not overstated.
- Additional concepts like substance over form, going concern assumption, accounting entity, time period assumption, and GAAP.
The Slideshow discussed Indian Companies Act 2013. It talks about Meaning of a company, kinds of companies, formation of a company, memorandum and articles of association, prospectus - contents and types, company directors and their appointment, removal, powers and duties, meetings of the board, winding up of a company.
This document discusses the different types of meetings held in companies. It describes statutory meetings, annual general meetings, and extraordinary general meetings that are held for shareholders. It also discusses board meetings and committee meetings for directors. Special meetings include class meetings for different types of shareholders and creditors meetings. The document provides details on the definition, purpose, notice requirements and proceedings of these various company meetings.
Corporate digest magazine august, 2017 by venture careKumar Kanaujia
Corporate Digest is a monthly e-magazine published for India Business owners by www.venture-care.com. It contents latest trends and expert opinions on Business, Strategy, Technology, Digital, Finance and Legal.
The document discusses the process of forming a company in India. It involves several key steps:
1) Approval of the company name from the Registrar of Companies.
2) Filing the Memorandum and Articles of Association with the ROC along with other required documents and fees.
3) Receipt of the Certificate of Incorporation from the ROC to legally form the company.
4) Additional steps for public companies, including obtaining a Certificate of Commencement of Business from the ROC to officially start operations.
The document summarizes key aspects of the Companies Act 2013 related to directors, board committees, and independent directors. Some key changes include requiring at least one woman director, limiting the number of directorships a person can hold, establishing mandatory board committees for audit, nomination and remuneration, and corporate social responsibility, and increasing the minimum number of independent directors for listed companies to one-third of the total directors. The duties and liabilities of directors and independent directors are also outlined.
The document outlines the key stages in forming a company:
1. Promotion, where an individual called a promoter undertakes initial work to establish the company.
2. Incorporation, which occurs when the company registers with the Registrar of Companies by submitting important documents like the Memorandum and Articles of Association.
3. Capital subscription, where a public company can raise funds from public issue of shares and debentures through steps like SEBI approval and allotment.
4. Commencement of business, the final stage where the company receives a certificate from ROC allowing it to begin operations.
For Linkedin Shares & Capital Structure as my publicationSuper Law Services
This document provides an overview of shares and capital structure from a historical perspective. It discusses how the modern corporate culture began in England and spread worldwide, requiring large amounts of capital raised through the public issuance of shares. A company's authorized capital forms the base of its strength and viability, while issued capital indicates its range of activity. Shares reflect shareholder ownership and rights regarding representation, profits, losses and winding up. Overall the document examines the role of shares and capital structure in corporate law and how they facilitate business formation and governance.
1) The document discusses the formation of a company, including the key steps of promotion, incorporation, and raising capital.
2) It outlines the roles and responsibilities of promoters in establishing a company. Promoters are responsible for initial planning, organization, and launching of the company.
3) The two most important legal documents for forming a company are the Memorandum of Association and Articles of Association. The Memorandum outlines the name, objectives, capital structure and liability of the company while the Articles provide internal regulations and procedures.
Incorporation of Company - ROC filling & procedure (Business Law)Yamini Kahaliya
This presentation is on forming a company it includes details about following points :-
Introduction
Importance
Steps involved in formation of company (as per Companies Act 2013)
Forms required for company formation & filling procedure
Attachment
Fees
Our company profile
Conclusion
The document discusses the process of promoting and establishing a company. It begins by defining a promoter as someone who undertakes to form a company for a given project. Key promoter functions include identifying business opportunities, conducting feasibility studies, registering the company name, signing the memorandum of association, and preparing necessary legal documents. These documents - the memorandum of association, articles of association, consent of directors, and statutory declaration - are submitted to the registrar for incorporation. Upon receiving a certificate of incorporation, the company can legally operate and the promoters' pre-incorporation contracts become valid. The company may then raise capital through an initial public offering by issuing a prospectus and completing other steps.
The 2010 Annual Survey of Philippine Business and Industry found that there were 148,266 establishments in the formal sector in 2010, a 0.7% decline from 2009. The document then provides definitions and requirements for different types of business organizations under Philippine law, including sole proprietorships, partnerships, corporations (stock and non-stock), and foreign corporations.
The document provides a backgrounder on the key highlights of the Companies Act, 2013. Some of the major changes introduced include:
- Definition of new terms like associate company, dormant company, foreign company, independent director, etc.
- Introduction of concepts like One Person Company, small companies with relaxed compliance.
- Faster registration process with e-governance features.
- Stricter disclosure norms for prospectus and allotment of securities.
- Provisions for reduction of share capital and redemption of preference shares.
- Enhanced role of e-governance for various company processes.
- Changes in board composition with limits on minimum and maximum number of directors.
The document provides information on the formation and registration of a company under Indian law. It discusses the key stages in company formation including promotion, incorporation, capital subscription, and commencement of business. It also describes the roles and responsibilities of a company secretary during the formation process and defines some important documents required for registration like the memorandum of association.
Companies Act 2013 - Directors, Independent Directors and MeetingsAbhishek Murali
The document discusses the evolution of independent directors and corporate governance norms in India from various committee reports. It outlines the roles and responsibilities of independent directors, board of directors, and managerial personnel as per the Companies Act. Key points include minimum number of independent directors required, their selection process, remuneration, and liabilities. It also summarizes provisions around director qualifications, meetings, and remuneration of managerial personnel.
NO. FJ2 (49)/2021-LEGIS) THE LEGISLATION WAS RECEIVED ON DECEMBER 1, 2021 AFTER BEEN APPROVED BY THE PARLIAMENT HEREAFTER PROMULGATED ON DECEMBER 04, 2021 CALLED AS THE COMPANIES (AMENDMENT) ACT, 2021.
There are several methods of conducting business in Pakistan including sole proprietorships, partnerships, and companies. Companies can be incorporated as private limited companies, public limited companies, or companies limited by guarantee. Foreign companies wishing to operate in Pakistan can open project/branch/liaison offices by registering with the relevant authorities and providing required documents.
The document summarizes key changes introduced in the Companies Bill 2013 as compared to the existing Companies Act 1956. Some important changes include increasing the maximum number of directors and directorships allowed, introducing provisions for one person companies, CSR requirements for large companies, mandatory appointment of women directors and independent directors, tightened disclosure requirements, and making secretarial standards statutory. The bill aims to facilitate ease of doing business while strengthening corporate governance.
The document discusses the key stages and processes involved in forming and operating a company in India according to the Companies Act of 1956. It covers the stages of promotion, incorporation, capital subscription, and commencement of business. It also discusses essential documents like the memorandum of association, articles of association, and prospectus. Other topics covered include types of company meetings, roles and powers of directors, and winding up processes like voluntary and compulsory liquidation.
Principle and concept of business ownership, including factors that are influence the choice of ownership, types, characteristics of each business ownership, advantages and disadvantages, the differences of business ownership and the procedure of business ownership registration.
The document provides information on the types of joint stock companies. It discusses companies based on:
1) Method of formation - chartered, statutory, registered companies
2) Liability of members - companies limited by shares, guarantee, unlimited companies
3) Membership - private, public limited companies
4) Ownership - government companies
It also outlines the key characteristics and stages of promotion for establishing a joint stock company.
There are two types of business entities - commercial and non-commercial organizations. Commercial organizations work to earn a profit that is distributed to owners, and include sole proprietorships, partnerships, and limited companies. Non-commercial organizations do not work to earn a profit but use it for their objectives, and include cooperatives, NGOs, and trusts. Accounting requirements differ between sole proprietorships, partnerships, and limited companies in how capital, drawings, and profits/losses are recorded.
The document discusses the roles and responsibilities of directors in a company. It provides information on how directors are appointed, their duties to the company and shareholders, powers they can exercise individually or through board resolutions, and liabilities they may face. It also covers topics like types of directors, qualifications for becoming a director, restrictions on directorships, and roles of managing directors.
The document discusses the definition and types of companies under Indian law. It defines a company as an artificial person with separate legal identity regulated by the Companies Act. Companies are classified as private limited or public limited, with minimum requirements for each type outlined. The key steps for incorporating a new company in India are also summarized, including registering with various regulatory authorities and filing required forms and documents.
This document provides an overview of laws governing business organizations in Indonesia. It discusses the main types of business entities recognized in Indonesia, including sole proprietorships, partnerships, corporations, and joint ventures. For each type of business entity, the document outlines how they are formed, governed, and their basic legal characteristics such as limited liability and ownership. It also discusses the process for setting up a business and company in Indonesia, as well as relevant regulations regarding foreign ownership of Indonesian businesses.
1. Accounting involves systematically recording, analyzing, classifying, summarizing, and interpreting business transactions and financial information.
2. The main purposes of accounting are to plan finances, keep financial records, enable information sharing, and use data to make decisions.
3. Accounting provides both internal and external users with financial information to assess a business's performance and financial position.
The document discusses the process of forming a company in India. It involves several key steps:
1) Approval of the company name from the Registrar of Companies.
2) Filing the Memorandum and Articles of Association with the ROC along with other required documents and fees.
3) Receipt of the Certificate of Incorporation from the ROC to legally form the company.
4) Additional steps for public companies, including obtaining a Certificate of Commencement of Business from the ROC to officially start operations.
The document summarizes key aspects of the Companies Act 2013 related to directors, board committees, and independent directors. Some key changes include requiring at least one woman director, limiting the number of directorships a person can hold, establishing mandatory board committees for audit, nomination and remuneration, and corporate social responsibility, and increasing the minimum number of independent directors for listed companies to one-third of the total directors. The duties and liabilities of directors and independent directors are also outlined.
The document outlines the key stages in forming a company:
1. Promotion, where an individual called a promoter undertakes initial work to establish the company.
2. Incorporation, which occurs when the company registers with the Registrar of Companies by submitting important documents like the Memorandum and Articles of Association.
3. Capital subscription, where a public company can raise funds from public issue of shares and debentures through steps like SEBI approval and allotment.
4. Commencement of business, the final stage where the company receives a certificate from ROC allowing it to begin operations.
For Linkedin Shares & Capital Structure as my publicationSuper Law Services
This document provides an overview of shares and capital structure from a historical perspective. It discusses how the modern corporate culture began in England and spread worldwide, requiring large amounts of capital raised through the public issuance of shares. A company's authorized capital forms the base of its strength and viability, while issued capital indicates its range of activity. Shares reflect shareholder ownership and rights regarding representation, profits, losses and winding up. Overall the document examines the role of shares and capital structure in corporate law and how they facilitate business formation and governance.
1) The document discusses the formation of a company, including the key steps of promotion, incorporation, and raising capital.
2) It outlines the roles and responsibilities of promoters in establishing a company. Promoters are responsible for initial planning, organization, and launching of the company.
3) The two most important legal documents for forming a company are the Memorandum of Association and Articles of Association. The Memorandum outlines the name, objectives, capital structure and liability of the company while the Articles provide internal regulations and procedures.
Incorporation of Company - ROC filling & procedure (Business Law)Yamini Kahaliya
This presentation is on forming a company it includes details about following points :-
Introduction
Importance
Steps involved in formation of company (as per Companies Act 2013)
Forms required for company formation & filling procedure
Attachment
Fees
Our company profile
Conclusion
The document discusses the process of promoting and establishing a company. It begins by defining a promoter as someone who undertakes to form a company for a given project. Key promoter functions include identifying business opportunities, conducting feasibility studies, registering the company name, signing the memorandum of association, and preparing necessary legal documents. These documents - the memorandum of association, articles of association, consent of directors, and statutory declaration - are submitted to the registrar for incorporation. Upon receiving a certificate of incorporation, the company can legally operate and the promoters' pre-incorporation contracts become valid. The company may then raise capital through an initial public offering by issuing a prospectus and completing other steps.
The 2010 Annual Survey of Philippine Business and Industry found that there were 148,266 establishments in the formal sector in 2010, a 0.7% decline from 2009. The document then provides definitions and requirements for different types of business organizations under Philippine law, including sole proprietorships, partnerships, corporations (stock and non-stock), and foreign corporations.
The document provides a backgrounder on the key highlights of the Companies Act, 2013. Some of the major changes introduced include:
- Definition of new terms like associate company, dormant company, foreign company, independent director, etc.
- Introduction of concepts like One Person Company, small companies with relaxed compliance.
- Faster registration process with e-governance features.
- Stricter disclosure norms for prospectus and allotment of securities.
- Provisions for reduction of share capital and redemption of preference shares.
- Enhanced role of e-governance for various company processes.
- Changes in board composition with limits on minimum and maximum number of directors.
The document provides information on the formation and registration of a company under Indian law. It discusses the key stages in company formation including promotion, incorporation, capital subscription, and commencement of business. It also describes the roles and responsibilities of a company secretary during the formation process and defines some important documents required for registration like the memorandum of association.
Companies Act 2013 - Directors, Independent Directors and MeetingsAbhishek Murali
The document discusses the evolution of independent directors and corporate governance norms in India from various committee reports. It outlines the roles and responsibilities of independent directors, board of directors, and managerial personnel as per the Companies Act. Key points include minimum number of independent directors required, their selection process, remuneration, and liabilities. It also summarizes provisions around director qualifications, meetings, and remuneration of managerial personnel.
NO. FJ2 (49)/2021-LEGIS) THE LEGISLATION WAS RECEIVED ON DECEMBER 1, 2021 AFTER BEEN APPROVED BY THE PARLIAMENT HEREAFTER PROMULGATED ON DECEMBER 04, 2021 CALLED AS THE COMPANIES (AMENDMENT) ACT, 2021.
There are several methods of conducting business in Pakistan including sole proprietorships, partnerships, and companies. Companies can be incorporated as private limited companies, public limited companies, or companies limited by guarantee. Foreign companies wishing to operate in Pakistan can open project/branch/liaison offices by registering with the relevant authorities and providing required documents.
The document summarizes key changes introduced in the Companies Bill 2013 as compared to the existing Companies Act 1956. Some important changes include increasing the maximum number of directors and directorships allowed, introducing provisions for one person companies, CSR requirements for large companies, mandatory appointment of women directors and independent directors, tightened disclosure requirements, and making secretarial standards statutory. The bill aims to facilitate ease of doing business while strengthening corporate governance.
The document discusses the key stages and processes involved in forming and operating a company in India according to the Companies Act of 1956. It covers the stages of promotion, incorporation, capital subscription, and commencement of business. It also discusses essential documents like the memorandum of association, articles of association, and prospectus. Other topics covered include types of company meetings, roles and powers of directors, and winding up processes like voluntary and compulsory liquidation.
Principle and concept of business ownership, including factors that are influence the choice of ownership, types, characteristics of each business ownership, advantages and disadvantages, the differences of business ownership and the procedure of business ownership registration.
The document provides information on the types of joint stock companies. It discusses companies based on:
1) Method of formation - chartered, statutory, registered companies
2) Liability of members - companies limited by shares, guarantee, unlimited companies
3) Membership - private, public limited companies
4) Ownership - government companies
It also outlines the key characteristics and stages of promotion for establishing a joint stock company.
There are two types of business entities - commercial and non-commercial organizations. Commercial organizations work to earn a profit that is distributed to owners, and include sole proprietorships, partnerships, and limited companies. Non-commercial organizations do not work to earn a profit but use it for their objectives, and include cooperatives, NGOs, and trusts. Accounting requirements differ between sole proprietorships, partnerships, and limited companies in how capital, drawings, and profits/losses are recorded.
The document discusses the roles and responsibilities of directors in a company. It provides information on how directors are appointed, their duties to the company and shareholders, powers they can exercise individually or through board resolutions, and liabilities they may face. It also covers topics like types of directors, qualifications for becoming a director, restrictions on directorships, and roles of managing directors.
The document discusses the definition and types of companies under Indian law. It defines a company as an artificial person with separate legal identity regulated by the Companies Act. Companies are classified as private limited or public limited, with minimum requirements for each type outlined. The key steps for incorporating a new company in India are also summarized, including registering with various regulatory authorities and filing required forms and documents.
This document provides an overview of laws governing business organizations in Indonesia. It discusses the main types of business entities recognized in Indonesia, including sole proprietorships, partnerships, corporations, and joint ventures. For each type of business entity, the document outlines how they are formed, governed, and their basic legal characteristics such as limited liability and ownership. It also discusses the process for setting up a business and company in Indonesia, as well as relevant regulations regarding foreign ownership of Indonesian businesses.
1. Accounting involves systematically recording, analyzing, classifying, summarizing, and interpreting business transactions and financial information.
2. The main purposes of accounting are to plan finances, keep financial records, enable information sharing, and use data to make decisions.
3. Accounting provides both internal and external users with financial information to assess a business's performance and financial position.
This document provides an overview of company law and secretarial practice in India. It defines a company and outlines its key characteristics such as separate legal identity, limited liability, transferable shares, and perpetual existence. It then classifies companies based on liability, members, control/holding, and other categories. The document also discusses company promotion, registration procedures, memorandum and articles of association, and the differences between private and public limited companies.
Industry and environmental analysis: business opportunity identificationdorotheemabasa
1. The document discusses industry and environmental analysis for business opportunity identification. It explains that industry analysis is essential before starting a business to understand its strengths, weaknesses, opportunities, and threats using a SWOT analysis.
2. It then describes different types of business organizations including sole proprietorships, partnerships, corporations, and cooperatives. Partnerships can be general or limited, and partners can be capitalist or industrial.
3. Key factors for evaluating industries and potential businesses are identified such as geographic area, industry size and trends, product description, target customers, regulations, competition, and growth factors.
This document defines key business terminology and outlines different types of business organizations. It discusses industries, businesses, sole proprietorships, partnerships, corporations, and cooperatives. Partnerships can be general or limited. Partners are either general, limited, capitalist, or industrial. The document also describes SWOT analysis and its use in evaluating business opportunities and risks. A SWOT analysis considers internal strengths and weaknesses as well as external opportunities and threats.
This presentation is about various Forms of Business Organisations and their features, merits and demerits. It also guides an entrepreuner on how to make a choice among various forms of Business Organisations.
This document provides guidance on key steps for implementing a new business after deciding to pursue an entrepreneurial opportunity. It discusses establishing a clear purpose and compelling vision for the enterprise. Choosing an appropriate name and selecting trustworthy business partners are also covered. Developing a thorough business plan that addresses various operational and financial aspects is presented as an important task. The document outlines options for organizing and structuring the enterprise as a sole proprietorship, partnership or corporation. Requirements for registration and compliance with relevant laws are described. Hiring committed employees who are competent and of good character is emphasized as important after establishing the enterprise.
This document provides an overview of business and management concepts. It discusses management as the process of conducting business activities to maximize results for employers and employees. When applied to the pharmaceutical industry, it is called pharmaceutical management. The key functions of management are then outlined as planning, organizing, staffing, directing, controlling, and coordinating. The importance of management for optimizing resources and reducing costs is also highlighted. The document then discusses different forms of business organizations including sole proprietorships, partnerships, joint stock companies, and cooperatives. It provides details on the characteristics, advantages, and disadvantages of sole proprietorships and partnerships. Finally, it differentiates between general and limited partnerships and outlines the salient features of joint stock companies.
the ownership of small businesses .pptxSociaLInfO1
Small businesses are defined as those requiring less capital, labor, and resources. They produce goods and services on a small scale and include industries like paper products, bakeries, and chocolate shops. Small businesses contribute to the economy by creating jobs, industries, and innovations. However, they often fail due to management shortcomings, inadequate financing, and excessive government regulation. To succeed, all businesses, including small ones, need a solid business plan that identifies customers, competitors, market conditions, and risks.
This document discusses different types of business ownership structures including sole proprietorships, partnerships, joint stock companies, corporations, cooperatives, public sector enterprises, and joint sector enterprises. It provides details on the key characteristics of each type such as capital structure, liability, management, and advantages and disadvantages. Some of the major types discussed are sole proprietorships where one individual owns the business, partnerships where two or more individuals own the business, and joint stock companies where ownership is divided into shares that can be publicly traded.
The document discusses different forms of business organization, including sole proprietorship, partnership, and joint stock company. It provides details on their key characteristics - for sole proprietorship, ownership and management is by one individual; for partnership, two or more individuals jointly own and manage the business; and for a joint stock company, it is an association of individuals who contribute capital towards a common goal. The advantages and disadvantages of each form are also outlined.
- Due diligence is a detailed investigation of a company's financial, legal and operational activities conducted prior to a major transaction like an IPO.
- The purpose is to identify any issues, assess risks and opportunities, ensure compliance with laws, and check the accuracy of financial statements and value of assets.
- Key areas of focus include the company's financials, assets, employees, marketing, industry, competition, legal matters, contracts and intellectual property.
- The due diligence helps identify gaps between the current company and what needs to be publicly listed, to then fill those gaps prior to the IPO.
There are several forms of business organizations that vary in ownership structure and legal requirements. These include sole proprietorships, partnerships, limited liability companies, multinational corporations, franchises, conglomerates, cooperatives, nationalized industries, and government departments. Limited liability companies provide protection to shareholders so they are not personally liable for business debts or bankruptcy. Multinational corporations operate across international borders but may exploit local workers. Cooperatives are owned by members who can obtain goods and services at lower costs.
The "Organizational Plan for Starting a New Venture" PowerPoint presentation (PPTX) provides a comprehensive overview of the strategic blueprint for launching a successful new business venture. This presentation delves into key aspects such as structuring the leadership team, defining roles and responsibilities, outlining the company's hierarchy, and establishing a clear communication framework. Through concise slides and visual aids, this PPTX offers valuable insights into building a robust organizational foundation that supports the venture's growth and sustainability, making it an essential resource for entrepreneurs and business enthusiasts embarking on new ventures.
This document provides an overview of key concepts in IGCSE Business Studies. It covers topics such as the purpose of business activity, factors of production, business objectives, forms of business organizations, costs and revenues, and external influences on business. Key points include defining fixed and variable costs, calculating break-even points, and explaining how government policies and pressure groups can impact business decisions.
The document provides information about accounting for managers, including:
1. It outlines a session plan for an accounting course covering topics like basic accounting concepts, the double entry system, preparing financial statements, and a class test.
2. It discusses different types of business entities like sole proprietorships, partnerships, limited liability partnerships, private and public companies, and one person companies.
3. It provides evaluation criteria for the course, which will be based entirely on an online test.
The Global Social Impact Investment Steering Group (GSG) was established in August 2015 as the successor to the Social Impact Investment Taskforce, established by G8. The GSG is continuing the work of the Taskforce in catalysing a global social impact investment market across a wider membership. Its members include 13 countries plus the EU, as well as active observers from government and from leading network organisations supportive of impact investment.
Across the world, attitudes are changing. Old certainties about tightly defined roles for government, civil society and business are dissolving. Social sector organisations are becoming more business-like, and business is looking ever more to delivering sustainable value.
The document discusses different forms of business ownership including sole proprietorships, partnerships, and private limited companies. It provides definitions and characteristics of sole proprietorships, noting they are owned and managed by a single individual who bears all risks and profits. Registration of partnerships and private limited companies is also covered, outlining the process and benefits such as establishing partnership terms and limiting partner liability.
The document discusses various forms of business ownership and registration procedures in Pakistan. It covers sole proprietorships, partnerships, private limited companies, and public companies. Key points include:
- The three main legal forms of business ownership are sole proprietorship, partnership, and company.
- A sole proprietorship is owned and managed by one individual who assumes all risks and profits/losses. Registration is not required.
- A partnership involves two or more owners who share profits/losses and management. Registration provides legal benefits but is not compulsory.
- A private limited company limits ownership to 50 members and prohibits public share offerings. It offers liability protection and more flexibility than a public company.
A sole trader business is owned and operated by one person. It has few legal requirements beyond registering with tax authorities and adhering to relevant industry laws. Advantages include complete control, keeping all profits, and flexibility. Disadvantages include unlimited liability, limited financing options, and risk if the sole proprietor becomes ill or dies.
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How to start a business enterprise for finance, subsidy & project related support contact - 9861458008
1. 1
HHOOWW TTOO SSTTAARRTT BBUUSSIINNEESSSS
EENNTTEERRPPRRIISSEE
Prepared By:
NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LTD.
NEDFi House, G.S.Road, Dispur
Guwahati
2. 2
TTAABBLLEE OOFF CCOONNTTEENNTTSS
STARTING A BUSINESS .................................................................................................................... 3
1 CREATING A BUSINESS PLAN ................................................................................................. 3
2 CHOOSING A FORM OF BUSINESS ORGANISATION............................................................... 4
3 NAMING AND REGISTERING A BUSINESS .............................................................................. 6
4 MAKING A PRODUCT CHOICE ................................................................................................ 7
5 CHOOSING THE LOCATION OF THE INDUSTRY ...................................................................... 8
6 SETTING UP INFRASTRUCTURE.............................................................................................. 9
7 SOURCING PROCESS, RAW MATERIALS, MACHINERIES AND EQUIPMENTS....................... 10
8 PRICING YOUR PRODUCT..................................................................................................... 12
9 FINANCING A BUSINESS....................................................................................................... 12
10 MANAGING HUMAN RESOURCES........................................................................................ 15
11 POLICIES AND REGULATIONS............................................................................................... 16
12 BRIEF FEATURES OF NEIIPP, 2007 :...................................................................................... 18
13 INCENTIVES AVAILABLE FOR ENCOURAGING ENTREPRENEURSHIP UNDER DIFFERENT SCHEMES
OF GOVERNMENT OF INDIA ....................................................................................................... 21
3. 3
STARTING A BUSINESS
Entrepreneur should undertake the task of preparing the business plan personally.
Although outsiders - consultants, accountants, and lawyers - should be tapped for their
advice and expertise, the promoter or the initial top management team should be
responsible for the writing. Personally drafting the plan will enable the entrepreneurs to
think through all aspects of the proposed business and ensure that they are familiar with
all the necessary details, for they will have to make decisions about the new venture
and be responsible for those decisions.
1 Creating a Business Plan
The business plan can personally benefit the entrepreneurial team. Usually a great deal
of money is at stake, and the consequences of poor decisions can affect many people
for a long time. In developing and writing a business plan, the entrepreneurial team
reduces these anxieties and tensions by confronting them in advance. By projecting the
risks of the new venture into the future, the team comes to grips with potential negative
outcomes and the possibility of failure.
Every business plan should include:
Profile of the company's management - Listing the names of top executives
and their qualifications and industry experience.
Kind of Business - A brief description of the industry your firm is focusing on or
the new venture’s strategy.
Objectives - The short term and long term objectives of the new business
venture.
Financial requirements - Briefly state how much finance is required indicating
the degree of flexibility you are willing to show in case the investor suggests any
changes in your plan.
Budget allocations - How you will be using the finance.
Market Analysis - The business plan should dwell upon the prevailing
competitive environment with a view to convincing the investor that his/her
4. 4
product/service is a niche product or service with substantial prospects for growth
and capable of attaining a competitive position in the market.
Environmental Influences - The impact of the environmental influences such as
political, economic, technological, socio-demographic and ecological factors that
affect your area of business.
Quality - The quality control measures to be put into place for ensuring quality of
the product/service.
Marketing - Identify the target market which should be substantiated by a
thorough market research. Once the target market has been identified, focus on
the communication strategy including advertising, branding, packaging etc.
Sales Forecast - Sales forecast is primarily dependent on three factors - size of
the market, fraction of the market you will be able to capture as a result of your
marketing strategy and the pricing strategy.
Financial Plans - A new venture must show projected profit and loss statements
and cash flow statements.
Human Resources - Make an organisation chart with details of key executives
and profiles of individuals likely to be hired.
Form of Business - Describe the legal form of your business - whether it is a
sole proprietorship or a partnership, public limited co., private limited co. or
society, etc.
Critical Risks - As a legal and moral obligation, the entrepreneur must, in the
business plan, envision risks the investor would be undertaking in case he makes
a choice to invest in your business. This will protect you from civil and criminal
liability.
2 Choosing a form of Business Organisation
The right choice of the form of business is very crucial because it determines the power,
control, risk and responsibility of the entrepreneur as well as the division of profits and
losses.
5. 5
The choice of the form of business is governed by several interrelated and
interdependent factors:-
The nature of business is the most important factor. Businesses providing direct
services like tailors, restaurants and professional services like doctors, lawyers
are generally organised as proprietary concerns. While, businesses requiring
pooling of skills and funds like accounting firms are better organised as
partnerships. Manufacturing organisations of large size are more commonly set
up as private and public companies.
Scale of operations i.e. volume of business (large, medium, small, micro) and
size of the market area (local, national, international).
The degree of control desired by the owner(s).
Amount of capital required for the establishment and operation of a business.
The volume of risks and liabilities as well as the willingness of the owners to bear
it.
Comparative tax liability.
Some of the forms of business organizations are:
Sole Proprietorship - It is a one-man organisation where a single individual
owns, manages and controls the business. This form of organisation is suitable
for the businesses which involve moderate risk, small financial resources, capital
requirement is small and risk involvement is not heavy like automobile repair
shops, small bakery shops, tailoring, etc.
Partnership firm - A partnership is formed by an agreement, which may be
either written or oral. When the written agreement is duly stamped and
registered, it is known as "Partnership Deed". Ordinarily, the rights, duties and
liabilities of partners are laid down in the deed. But in the case where the deed
does not specify the rights and obligations, the provisions of the THE INDIAN
PARTNERSHIP ACT, 1932 will apply. Partnership is an appropriate form of
ownership for medium sized business involving limited capital. This may include
small scale industries, wholesale and retail trade; small service concerns like
6. 6
transport agencies, real estate brokers; professional firms like chartered
accountants, doctors' clinic, attorney or law firms etc.
Co-Operatives - Co-operative organisation is a society which has as its
objectives for promotion of the interests of its members in accordance with the
principles of cooperation. It is a voluntary association of ten or more members
residing or working in the same locality, who join together on the basis of equality
for the fulfillment of their economic or business interest. It is subjected to the
provisions of the Co-Operative Societies Act, 1912 or State Co-Operative
Societies Act.
Private Limited Company - A private limited company is a voluntary association
of not less than two and not more than fifty members, whose liability is limited,
the transfer of whose shares is limited to its members and who is not allowed to
invite the general public to subscribe to its shares or debentures. A private
company is preferred by those who wish to take the advantage of limited liability
but at the same time desire to keep control over the business within a limited
circle and maintain the privacy of their business. The state of Sikkim has not
ratified the Indian Companies Act, 1956 and therefore, Registrar of Companies
does not have their presence in the state. However, for the limited purpose of
registration and other statutory requirements Sikkim Companies Act of 1961 and
Registration of Companies Act of Sikkim 2007 are in force in the state.
And other forms of business organizations are:
Public Limited Company (PLC).
Hindu Undivided Family Business (HUF).
Limited Liability Partnership (LLP).
Societies.
3 Naming and Registering a Business
All the business must be named and registered with the competent authorities as below:
7. 7
Sole Proprietorship - The registration can be done at District Industries Centre
(DIC), Gangtok for North and East Districts and Jorethang for South and West
Districts.
Partnership firm - The registration can be done at Registrar of Firms, District
Administrative Centre, Gangtok.
Co-Operatives - It must be registered with the Registrar of Co-Operative
Societies.
Private & Public Limited Company - Registrars to be done under Sikkim
Companies Act 1961, amended as Registration of Companies Act of Sikkim,
2007. It must be registered with Department of Law, Government of Sikkim, The
Secretariate, Gangtok.
Societies – It must be registered with the Registrar of Firm & Societies, Law
Department, The Secretariate, Gangtok.
Hindu Undivided Family Business – It comes into existence by the operation of
Hindu law and not out of contract. The rights and liabilities of co-parceners are
determined by the general rules of the Hindu law. Registration is not necessary,
but the rights of its members to sue third parties for claims of debt remain
unaffected.
Limited Liability Partnership (LLP) – To be registered on the website of
Ministry of Corporate Affairs, developed for LLP services i.e; www.llp.gov.in.
4 Making a Product Choice
The choice of a particular product or service to be manufactured by the firm can be
done by analyzing the following:
Assessing the size and structure of the market for the products.
Determining the future demand pattern for each of them.
Comparing their competitive positions in the market.
Graphing the life cycle of each product.
Finding the shelf life of each product.
The ease of availability of raw materials.
8. 8
Technology for production.
Manpower.
Government policies, regulations and incentives by both state and central
government.
List of some of the important organizations who can help in obtaining an idea about the
products and services that can be produced are:
North Eastern Industrial & Technical Consultancy Organisation Ltd. (NEITCO).
North Eastern Handicraft & Handlooms Development Corporation Ltd.
(NEHHDC). (http://www.nehhdc.com/)
North Eastern Regional Agricultural Marketing Corporation Ltd. (NERAMAC).
(http://www.neramac.com/)
Entrepreneurship Development Institute of India (EDI). (www.ediindia.org/)
Micro, Small & Medium Development Institutes (MSME-DI).
(http://dcmsme.gov.in/)
Khadi and Village Industries Commission / Board (KVIC / KVIB).
National Bank for Agriculture and Rural Development (NABARD).
(www.nabard.org/)
Small Industries Development Bank of India (SIDBI). (www.sidbi.in/)
North Eastern Development Finance Corporation Ltd. (NEDFi). (www.nedfi.com/)
State Financial Corporations (SFCs).
Department of Industrial Policy and Promotion in the Ministry of Commerce and
Industry. (http://dipp.gov.in/)
District Industries Centre (DIC) located at each district of the state.
5 Choosing the location of the Industry
Location of the business is the most important factor influencing its success or failure. It
is a long-term decision which should take into consideration not only the present
requirements of the organisation but also its future expansion plans. Hence, the most
9. 9
advantageous location is that at which the cost of gathering material and fabricating it
plus the cost of distributing the finished product to the customers will be at a minimum.
The choice of location depends on several important factors:
5.1 Factors affecting selection of a region-
Availability of required raw materials.
Availability of required grade of labour i.e. skilled, semi-skilled or unskilled.
Proximity to the product market.
Availability of transport facilities
Adequate supply of power and fuel.
Climatic factors based on the product types.
Government regulations and policies.
Law and order situation.
Existence of complementary and competitive industries
5.2 Selection of the exact site-
The price and size of land.
Disposal of liquid waste requires proper sewer-connections or river outlets, while
disposal of solid waste needs availability of a dump or an extra piece of land for
the purpose.
6 Setting up Infrastructure
Setting up of basic infrastructural facilities for commencing business operations
involves:
Land and Construction of Building – For acquisition of the plot of land, the
entrepreneur must approach the concerned authority (Municipality, Land
Revenue & Settlement Department). The architectural design of the factory must
be approved by the concerned authority before starting the construction of the
building.
10. 10
The site must be well connected to the nearest transport network i.e. rail, road or
port.
The availability of the basic amenities like, water, power supply is equally
essential.
Setting up of a good telecom facility for the industry is necessary for the growth
and expansion of the business.
The State and Central Government offers incentives like land and building tax
concessions, providing land at cheaper rates through the Government Agencies to new
and existing entrepreneurs. It also offers concessions in water tariff, power subsidy,
subsidy on generating sets, capital investment subsidy, transport subsidy, insurance
subsidy, incentive for pollution control and quality equipment depending on the location,
size of investment and category of the industry.
7 Sourcing Process, Raw Materials, Machineries and Equipments
The next important step is to select appropriate technology and equipment to produce
the same. In addition to this, the source of raw material has to be decided upon. The
requirements of all these can either be met through domestic sources or can be
imported subject to the regulatory requirements of the Government.
7.1 Process Selection:
While choosing the process technology, following considerations are essential:-
The level of skilled workers or complex machines required by the process.
The quantity of water and / or power required.
If any process or product patent is needed in order to utilize the selected process
technology.
Any special Pollution or Environmental regulation is to be followed.
The appropriateness of the technology to the Indian environment and conditions.
7.2 Raw Materials:
Proper planning of raw materials is essential because non-availability of the required
raw material may result in production hold-ups, idle machinery and manpower. On the
11. 11
other hand if too much is ordered too soon, considerable amount of working capital gets
locked up. All this will lead to increased production costs. But proper inventory
management can lead to manageable cash flow situations. For imported raw material
whose lead time are large, proper planning is all the more essential.
Key issues to be considered by the entrepreneur regarding sourcing of raw material are:
Identify the raw material required for manufacturing the desired product.
Whether locally available in sufficient quantity and quality or has to be sourced
from outside.
Price trends, demand & supply of critical raw materials.
Products whose production is subject to seasonality of supply. Continuity of
supply to be assessed.
Compare the prices and get quotation from atleast 3-4 places and also check
whether price is inclusive or exclusive of transportation costs.
Arrangements for procurement.
Transportation to the site with respect to cost, wastage / damage during
transportation, etc.
Whether raw materials can be purchased on credit, cash or advance.
7.3 Machinery and Equipments:
The machinery and equipments required may be either domestically available or
imported from abroad. The imports are regulated by the Foreign Trade (Development
and Regulation) Act, 1992. Generally, technology or process provides with the
necessary specifications relating to machinery and equipment required. Otherwise, an
extensive techno-economic survey of the available machinery and equipment may be
carried out.
An entrepreneur can avail advice of the following organizations for identifying correct
machinery and equipments:
12. 12
Micro, Small and Medium Enterprises Development Institutes (MSME-DIs)
formerly known as SISIs. For more details, refer the website of Ministry of MSME
i.e; http://dcmsme.gov.in/
8 Pricing your Product
Fixing the right price for a product is the most difficult task as it affects the volume of
sales of the product of the firm as well as the profits of the firm. Prices are set by a firm
by taking into consideration factors like costs, profit targets, competition and perceived
value of products. Taking into account the various factors, the steps generally followed
in setting the price of a product are:-
Setting the pricing objective of the firm.
Determining the demand for the product.
Estimating the cost of operation and profit margin.
Determining the competition for the product.
Considering the governmental regulations on taxation.
9 Financing a Business
A business firm requires finance to commence its operations, to continue its operations
and for its expansion and growth. Hence, a financial plan needs to be prepared, which
indicates the requirements of finance, sources for raising the finance and the application
of funds. Financial planning for starting a business begins with estimating the total
amount of capital required by the firm for the various need of the business.
9.1 Methods of Raising Capital and its Sources:
Institutions comprising of banks, financial institutions, non banking financial companies
and venture capital companies cater to the diverse financial needs of the industry.
Various schemes are being implemented by various banks and financial institutions to
cater to the financing needs of the MSMEs. A firm may raise funds for different
purposes depending on the time periods ranging from very short to fairly long duration
and the business can be financed by the following means:
13. 13
Investment of own savings.
Raising loans from friends and relatives.
Loans from commercial banks - Medium-term loans can be raised from
commercial banks against the security of properties and assets. Funds required
for modernisation and renovation of assets can be borrowed from banks.
Loan from financial institutions - Long-term and medium-term loans can be
secured from financial institutions (FIs). Loans agreed to be sanctioned must be
covered by securities by way of mortgage of the firm's property or assignment of
stocks, shares, gold, etc.
Public deposits - Companies often raise funds by inviting their shareholders,
employees and the general public to deposit their savings with the company. The
Companies Act permits such deposits to be received for a period up to 3 years at
a time. Public deposits can be raised by companies to meet their medium-term
as well as short-term financial needs.
Reinvestment of profits - Profitable firms do not generally distribute the whole
amount of profits as dividend but, transfer certain proportion to reserves. As
these retained profits actually belong to the shareholders of the firm, these are
treated as a part of ownership capital. Retention of profits is a sort of self
financing of business.
Issue of shares – There are two types of shares :-
a) Equity shares: The rate of dividend on these shares depends on the
profits available and the discretion of directors. Hence, there is no fixed
burden on the company. Each share carries one vote.
b) Preference shares: dividend is payable on these shares at a fixed rate and
is payable only if there are profits. Hence, there is no compulsory burden
on the company's finances. Such shares do not give voting rights.
Issue of debentures - Companies generally have powers to borrow and raise
loans by issuing debentures. The rate of interest payable on debentures is fixed
at the time of issue and is recovered by a charge on the property or assets of the
company, which provide the necessary security for payment. The company is
liable to pay interest even if there are no profits. Debentures are mostly issued to
14. 14
finance the long-term requirements of business and do not carry any voting
rights.
Trade credit - Firms buy raw materials, components, stores and spare parts on
credit from different suppliers. Generally suppliers grant credit for a period of 3 to
6 months, and thus provide short-term finance to the firm.
Factoring - The amounts due to a firm from customers, on account of credit sale
generally remain outstanding during the period of credit allowed i.e. till the dues
are collected from the debtors. The book debts may be assigned to a bank and
cash realised in advance from the bank. Thus, the responsibility of collecting the
debtors' balance is taken over by the bank on payment of specified charges by
the company.
Discounting Bills of Exchange - Widely used for raising short-term finance.
When the goods are sold on credit, bills of exchange are generally drawn for
acceptance by the buyers of goods. Instead of holding the bills till the date of
maturity, firms can discount them with commercial banks on payment of a charge
known as bank discount. The rate of discount to be charged by banks is
prescribed by the Reserve Bank of India from time to time. The amount of
discount is deducted from the value of bills at the time of discounting.
Bank overdraft and Cash Credit - It is used for meeting short-term financial
requirements. Cash credit refers to an arrangement whereby the commercial
bank allows money to be drawn as advances from time to time within a specified
limit. This facility is granted against the security of goods in stock, or promissory
notes bearing a second signature, or other marketable instruments like
Government bonds. Overdraft is a temporary arrangement with the bank which
permits the firm to overdraw from its current deposit account with the bank up to
a certain limit. The overdraft facility is also granted against securities. The rate of
interest charged on cash credit and overdraft is relatively much higher than the
rate of interest on bank deposits.
9.2 Approaching a Bank / Financial Institution
Some of the important information that has to be provided when approaching the
banks/financial institutions for financial assistance of a new / existing business venture:
15. 15
Letter of Introduction
Profile of the promoters setting out the educational achievements, professional
training, qualifications, employment record and achievements, Networth, etc.
Details of existing business, if any.
Detailed report of the proposed business plan with product details.
Organisation structure & its management.
Bank and other technical references.
Proof of firm’s ownership or Registration.
Audited Balance Sheet, Profit-and-Loss Account, and Cash-Flow Statement of
existing business or associate firms.
Proposed financial estimates.
Marketing and selling arrangement.
Raw materials, consumables and utilities.
Cost of the project.
Means of finance.
Techno-Economic Feasibility study of the proposed project.
No objection / Certificate / Status of Clearances from various authorities.
Guarantees or Collateral being offered.
If it is an existing business, audited Balance Sheet, Profit and Loss Account and Cash
Flow Statement of the business or associate firms are to be furnished. Companies
registered under relevant acts should produce the Memorandum and Articles of
Association which contain the above information in detail.
10 Managing Human Resources
The idea of Human Resource Management strategy is that of development of
innovation skills and aptitude, improve quality of performance of employees and to
reduce costs in an organisation by motivating workers to work harder, applying their
best efforts, skills and knowledge towards their work and organisation.
Some important aspects of human resource management are:
16. 16
Orientation or Induction programme for newly appointed employees.
Good health and safety environment for the employees.
Systematic and scientific training of employees.
Employee benefits such as wages, voluntary retirement services (VRS), bonus,
leave, social security, etc.
Work-Life balance.
11 Policies and Regulations
Once an entrepreneur has taken all the important decisions relating to starting a
business, he/she has to take into account the basic regulatory requirements which are
to be followed for setting up the organisation.
Policies are issued by both, the Central Government and State Governments. Policies
can range from being relevant to a multitude of sectors, as well as being specific to a
single sector. Policies are of extreme importance as they can determine the growth
potential as well as the ease of doing business in a particular industry. Therefore,
entrepreneurs should pay close attention to the Government (both Central and State)
policies.
The most important policies and regulations are:
11.1 Central Government-
North East Industrial and Investment Promotion Policy (NEIIPP) 2007.
(http://dipp.gov.in/)
The Micro, Small & Medium Enterprises Development (MSMED) Act, 2006
(http://www.and.nic.in/C_charter/indust/msmeact2006.pdf)
The Companies Act, 1956 which regulates all the affairs of a company.
(www.mca.gov.in)
The Industrial Disputes Act, 1947 is the legislation for investigation and
settlement of all industrial disputes. (http://labour.nic.in/)
17. 17
The Trade Unions Act, 1926 which deals with the registration of trade unions,
their rights, liabilities and responsibilities as well as ensures that their funds are
utilized properly. (http://labour.nic.in/)
Laws relating to Intellectual Property Rights (IPRs)
Environmental regulations administered centrally by Ministry of Environment and
Forests (MoEF) and State Pollution Control Board at state level
Export and Import (EXIM) Policy for foreign trades
Labour policy, occupational health and safety of workers. (http://labour.nic.in/)
Competition Act, 2002. (http://www.cci.gov.in/)
Tax Law and Rules. (http://www.incometaxindia.gov.in/)
Excise and Customs Act. (http://www.cbec.gov.in/)
18. 18
12 Brief features of North East Industrial and Investment Promotion
Policy (NEIIPP), 2007:
Introduction:
The Government has approved a package of fiscal incentives and other concessions for
the North East Region namely the ‘North East Industrial and Investment Promotion
Policy (NEIIPP), 2007’, effective from 1.4.2007, which cover units located anywhere in
the 8 states of NER including Sikkim. All new units as well as existing units which go in
for substantial expansion will be eligible for incentives for a period of ten years from
the date of commencement of commercial production.
The Fiscal Incentives include:-
(1) Excise Duty Exemption:
Excise Duty exemption is made available on finished products manufactured in North-
Eastern Region based on duty payable on value addition undertaken in the manufacture
of such goods. For details including stipulated rate of value addition may please refer to
the notifications of Department of Revenue, Ministry of Finance, Govt. of India.
(2) Income Tax Exemption:
100% Income Tax exemption will continue under NEIIPP, 2007.
(3) Capital Investment Subsidy:
Capital Investment Subsidy of 30% on the investment in plant and machinery will be
eligible for following categories -
(A) Manufacturing Sector
(B) Biotechnology Industry
(C) Power Generating Industries for
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Capital Investment Subsidy - 30% on cost of construction of building (excluding the
cost of land) for following sevice sector activities:
(i) Hotels (Not below “Two Star” category)
(ii) Adventure and leisure sports including ropeways
(iii) Nursing Homes (with a minimum capacity of 25 beds)
(iv) Oldage Homes
(v) Vocational Training Institutes for:
a. Hotel Management
b. Catering and Foodcraft
c. Nursing and Paramedical
d. Civil Aviation related training
e. Fashion
f. Design
g. Industrial training
(4) Interest Subsidy:
Interest Subsidy is available @ 3% on working capital loan under NEIIPP, 2007.
(5) Comprehensive Insurance:
New industrial units as well as the existing units on their substantial expansion will be
eligible for reimbursement of 100% insurance premium.
* For details on eligibility may please refer to the guidelines/circular issued by
DIPP, Ministry of Commerce from time to time.
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The Service Sector defined under MSME Act-2006 is different from the Service
Sector covered under NEIIPP-07. The entrepreneurs are requested to check
eligibility of the activity under NEIIPP-07 before taking up a project.
The Classification of Service Sector & Manufacturing Sector as per MSME Act is
mentioned below for reference only.
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13 INCENTIVES AVAILABLE FOR ENCOURAGING ENTREPRENEURSHIP
UNDER DIFFERENT SCHEMES OF GOVERNMENT OF INDIA
1. Tea Board extends support towards plantation, irrigation, transport vehicle,
exhibitions, advertisement etc. for details please visit http://www.teaboard.gov.in
2. Coffee Board extends support towards replantation, water augmentation, quality
upgradation etc. for details please visit http://www.indiacoffee.org/
3. Coconut Development Board provides financial support for production &
distribution of planting material, integrated farming for productivity improvement,
market promotion, coconut palm insurance scheme etc. for details please visit
http://coconutboard.nic.in/
4. Coir Board provides financial support for skill upgradation, organising workshop &
seminars, exposure tour and quality improvement programme. Mahila Coir Yojana
(MCY) is the first woman oriented self employment scheme by giving subsidy of
75% of the cost of purchase of ratts to the trained women artisans. For details
please visit http://coirboard.nic.in/
5. Ambedkar Hastshilp Vikas Yojana (AHVY) wherein the main thrust is on a
projectised, need based approach for integrated development of potential
handicrafts clusters with participation of the craft persons at all stages for
implemenation of the scheme. AHVY extends financial support for development &
supply of improved modern tools, design & technical development workshops,
training, organising seminar & exhibitions etc. For details please visit
http://handicrafts.nic.in/ahvy/ahvyscheme.doc
6. Market Access Initiative (MAI) scheme is an Export Promotion Scheme formulated
on focus product- focus country approach to evolve specific strategy for specific
market and specific product through market studies/ survey. MAI provides financial
support for opening showroom & warehouses, display in international departmental
stores, publicity campain and branch promotion etc. For details please visit
http://commerce.nic.in/trade/mai_guide.pdf
7. Agricultural and Processed Food Products Export Development Authority (APEDA)
mission is to develop agricultural commodities and processed food to promote
exports. APEDA provides financial support for packaging development, export
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promotion and market development etc. For details please visit
http://www.apeda.gov.in
8. Ministry of Food Processing Industries (MoFPI) covers setting up technology
upgradation, modernization of food processing industries in fruits & vegetables,
pulses etc. The scheme provides 25% of the cost of plant & machinery and
technical civil works subject to a maximum of Rs.50 lakhs in general areas and
33% up to Rs.75 lakhs in difficult areas like NER. For details please visit
http://indarun.gov.in/htm/foodprocessing/decentral.pdf
9. National Horticulture Board (NHB) provides financial support for land development,
cultivation expenses, poly house or shade nets, farm tools etc. For details please
visit http://nhb.gov.in/
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