Ease of doing business for MSMEs: MSME Guide by FE Aspire houses rich content to help an entrepreneur start, run and grow a business in India through explainers, how-to articles, comparisons, definitions, analysis, and more around various MSME schemes, technology platforms for small businesses, financial terminologies in business, regulatory compliances, etc. The section will be updated on a timely basis to guide micro, small and medium-sized enterprise owners through the basics of financial, regulatory, economic and technological developments.
For an enterprise, profit is usually the primary target and a key measure of success. While financing through debt or equity can help a business sustain and grow, generating profit and ploughing them back into the business is important. For those without a source of capital or investors, profit perhaps is the only way to capitalise the business. Moreover, it also incentivises the management or promoter for a larger risk appetite and expansion. Profit can primarily be categorized into gross profit, operating profit and net profit other than net operating profit after tax (NOPAT) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)…(Read More)
GST or Goods and Services Tax was introduced back in 2017 to replace multiple indirect taxes viz., excise duty, value added tax, purchase tax, service tax, etc. Businesses supplying goods with a turnover of more than Rs 40 lakh and services with a turnover of more than Rs 20 lakh are required to register for GST registration. After registration with the 15-digit Goods and Services Taxpayer Identification Number (GSTIN) and registration certificate, the need to change details may arise due to multiple factors such as a change in address or contact number or business details, etc. Here are some key FAQs on the amendments to the GST registration.
The shop and establishment registration is a basic business registration mandatory for all shops and commercial establishments in a particular state or union territory to carry out business activities. Regulated under the Shop and Establishment Act of every state, shops and premises from where goods and services are sold, offices, warehouses, restaurants, hotels, theatres, places for public entertainment or any other place where retail and/or wholesale goods or services are rendered are required to get their shop and establishment license…(Read More)
Similar to a tax invoice, an export invoice is raised by an exporter or supplier of goods and services listing the items exported, the amount due from the importer and other details. The export invoice gains significance in the event of claiming insurance and as a proof of transaction between the exporter and importer. Moreover, apart from being an important part of the entire shipping paperwork, the export invoice also helps the government in determining the right value of the exported items and the taxes to be levied…(Read More)
Insolvency describes the financial situation of an enterprise failing to pay its debts as they become due. The company, in other words, has more debt than assets or income to adhere to its financial obligation towards its creditors. To address the insolvency of a company by helping it revive, the Corporate Insolvency Resolution Process (CIRP) is the procedure established under the Insolvency and Bankruptcy Code (IBC), 2016 by the government…(Read More)
The Central Board of Indirect Taxes and Customs (CBIC) under the finance ministry through a notification in May 2023 had notified the reduction in the turnover threshold for e-invoicing or electronic invoicing. According to the notification, enterprises with a turnover of more than Rs 5 crore, from earlier Rs 10 crore, in any financial year will have to generate e-invoice for business-to-business (B2B) transactions including supply of goods and services and exports with effect from August 1, 2023…(Read More)
Pradhan Mantri Mudra Yojana (PMMY) is among the self-employment and entrepreneurship promotion schemes of the government launched by Prime Minister Narendra Modi back in 2015. The scheme targets micro enterprises, which are generally proprietary concerns, and individual businesses at the bottom of the entrepreneurial pyramid seeking loans up to Rs 10 lakh…(Read More)
Since its launch in August 2016, the government’s public procurement marketplace Government eMarketplace (GeM) has grown to Rs 4.1 lakh crore in gross merchandise value (GMV) with more than 1.5 crore orders processed so far. The buyer and seller count has also jumped to nearly 70,000 and 61 lakh respectively in over six years, indicating the growing digitisation of traditional public procurement to facilitate transparency in the government buying process which otherwise was difficult, particularly for micro and small enterprises in the offline world…(Read More)
The Udyam portal launched in 2020 to ease registration of businesses as micro, small and medium enterprises has grown to 1.73 crore registered enterprises as of Wednesday, according to the available data from the portal. The Udyam certificate is mandatory for enterprises looking to avail of various schemes from the MSME ministry such as credit guarantee scheme, public procurement policy, Prime Minister Employment Generation Programme, MSME Champion scheme, and more…(Read More)
Launched in 2008 and implemented by the Khadi & Village Industries Commission (KVIC), the scheme provides credit up to Rs 50 lakh (increased from earlier up to Rs 25 lakh) to aspiring entrepreneurs for launching their new manufacturing units and up to Rs 20 lakh (from Rs 10 lakh earlier) for new service units. The scheme was also extended over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore…(Read More)
Earning money necessitates spending money in business. In order to grow and scale a micro, small or medium-sized business by earning profits, it is important to put the money earned back into the business as an investment. Investments in a business could be either for the long term or for the short term to enhance business efficiency for growth in returns…(Read More)
Employees’ State Insurance (ESI) scheme is a social security scheme aimed to provide socio-economic protection to organised sector employees in the event of sickness, maternity, disablement and death due to employment injury and also to provide medical care to the insured employees and their families. The scheme is administered by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment with members representing employers, employees, central and state governments, medical professionals and members of Parliament…(Read More)
For lakhs of MSMEs, Udyam registration since June 2020 has been the window to various schemes by the government offered to ease starting and doing business in India. Availing credit at lower interest rates, accessing government tenders, availing tax benefits, incubation, mentorship, and other support measures have been available for Udyam-registered small businesses post Covid…(Read More)
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