How To Turn Your Business Into Private Limited Company

How To Turn Your Business Into Private Limited Company? A Complete Guide

Incorporate Your Company

Are you aware of all the numerous advantages your company is currently missing out on? It’s all because your company isn’t incorporated yet. Let’s begin with understanding the meaning of company incorporation. It simply means to turn your business into a corporate entity. Understanding the difference between a company and a corporation is the first step, to begin with, the process of company incorporation, especially the entrepreneurs starting their new venture.

Understanding Types Of Incorporation

Understanding Types Of Incorporation in Private Limited Company

You thought you understood the incorporation process? Just wait until you hear about the various types of incorporation that are present out there. There are several options available to choose from while registering your company.

  1. Private Limited Company (Pvt Ltd)
  2. Public Limited Company
  3. Partnerships
  4. LLp Registration
  5. One Person Company
  6. Sole Proprietorship
  7. Section 8 Company

What is Private Limited Company?

Heading on to understand what private limited companies are all about. It is one of the most popular types among the seven other types of incorporation available. A Private Limited Company refers to a privately held entity usually for small businesses. The liability is privately shared by the shareholders amongst themselves. This is practised to protect personal assets.

There is a clear distinction between the personal and the business assets of the members which results in ensuring security and protection. The liability of a shareholder is equivalent to the share held. There is also a distinct way of sharing the trade of such entities. Private limited companies’ shares cannot be traded publicly. 

Traits of Private Limited Company

The number of members – A minimum of 2 members and a maximum of 200 are required.

Limited Liability – Limited Liability of each shareholder, saves the shareholders’ personal assets from risk. 

SuccessionIt has perpetual succession through various situations like death, insolvency, or even bankruptcy. The company exists through anything.

Index of numbers – Holding the added benefit over the public entity, it doesn’t require to maintain an index of its members

Directors – The number of directors must be 2. 

Paid-up capital – A minimum paid-up capital of rs 1 lakh or above is a must.

Prospectus – No need for a statement with detailed information about the company and its working which is issued by the company for the public. 

Name – The suffix of Private Limited must be used after the name of the company

Minimum Subscription – Private Limited Company does not need the minimum subscription for the allotment of shares to the public. 

Benefits of choosing Private Limited Company

Benefits of choosing Private Limited Company

There are some exclusive benefits of the entity of a Private Limited Company in India viz. Easy transfer of shares by just shining of share certificate, higher borrowing capacity enables the company to seek external financial help, and a separate legal entity allows the company to take up loans. That’s not all, there are several more advantages like

  • Lesser number of shareholders, hassle-free decision making
  • The minimum number of shareholders is as low as 2.
  • Does not require to disclose the information and their financial reports to the public.
  • Flexible decision-making for short-term and long-term both.
  • Not under the pressure of the stock market
  • Minimum share capital required
  • Confidential information remains intact

What is in there for startups?

Small businesses and startups gain the credibility and reputation of a well-established business by registering themselves as a Private Limited Company. It elevates their impression in front of financial institutions, customers, and others. It helps them to get loans from banks or other institutions at minimum compliance at the beginning stage of the business. 

Thinking About Keeping it Private?

Now that you know about all the benefits of registering your business as a Private Limited Company, are you ready to incorporate yours? Avail all these benefits without falling into the rut of extensive documentation and hassles of registration. Wondering how to do that? You just need to call Egniol services and everything will be taken care of. 

 

Our professionals at Egniol, provide you with a start-to-finish service for all your business needs. We ensure that you complete the formalities without any delay and receive the ‘Private Limited’ suffix to your company name at the earliest. Startup owners get in touch with us today. 

Venture Capital Assistance Scheme – Startup India - Egniol

Venture Capital Assistance Scheme – Startup India

When it comes to agriculture, the venture capital assistance program has been a godsend.

The agricultural sector in India is the largest private sector in the country. As people’s eating habits shift across the country, there is a great need for reasonably priced food products, which means that the industry has a great deal of room to expand.

The agricultural industry in India is a success thanks to the way it was framed. India’s economy relies heavily on agriculture. The agricultural sector provides income for more than 70 per cent of rural households. The agricultural industry in India is vital to the country’s economy. About 60% of the workforce and 17% of GDP come from agriculture. As a result, the Indian government has a pressing obligation to support the agricultural sector in every possible way.

What exactly is a Venture Capital Assistance Scheme?

What exactly is a Venture Capital Assistance Scheme

Scheme administered by the Small Farmers Agri-business Consortium; also known as the Venture Capital Assistance Scheme. The success and prosperity of farmers and their agricultural enterprises are the intended outcome of this plan. Loans to farmers whose projects meet the criteria set out by the Venture capital assistance scheme will help them acquire the necessary funds to see those projects through to fruition. It’s one of the country’s finest initiatives to promote agricultural entrepreneurship. To make up for funding shortfalls, the program provides zero-interest loans to the agricultural sector.

A program like this is a huge boon to people and communities that want to pursue agriculture as a profession and launch their businesses. With the help of the scheme, agribusiness entrepreneurs can get financial backing for their ventures. With the help of the Project Development Facility, potential investors can get the funding they need to create detailed project proposals that can be taken seriously by financial institutions.

Who Can Apply?

The following individuals are eligible to receive funding from the Venture Capital Assistance scheme:

  • Individuals.
  • Farmers.
  • Partnership/ Proprietary firms.
  • Producer Groups.
  • Self-help Groups (SHG)
  • Companies
  • Agri-export units.
  • Agriculture graduates taking up agri-business projects.

Institutions Eligible for Financing in Venture Capital Assistance Scheme

Nationalised banks, SBI & its Subsidiaries, IDBI, SIDBI, NABARD, NCDC, RRBs, and other State Financial Corporations are all examples of banks and financial institutions regulated by the Reserve Bank of India that have more than 50% ownership by the Central or State Government.

Goals of the Venture Capital Assistance Scheme

The scheme’s primary goals in providing funding for startups are as follows:

  • To assist and aid entrepreneurs in establishing an agribusiness venture that is acceptable to banks and other financial institutions.
  • With the right policies in place, we can help steer agricultural entrepreneurship in the right direction.
  • To entice private Venture Capital Assistance Scheme into agribusiness endeavors.
  • Facilitate agribusiness initiatives’ backward linkages.
  • To schedule training sessions and guarantee regular visits from Agribusiness owners.
  • The current state and national SFAC must be fortified.
  • The Project Development Facility is being used to encourage farmers to form SHGs.

The purpose of the Venture Capital Assistance Scheme is to help agribusinesses across the country succeed. Farmers must be prioritized for the time being, and they must be given every chance to improve their situation so that they can help the agricultural sector and the Indian economy as a whole. All that needs to be done is for people to learn about these scams. We at Egniol are committed to assisting you with everything you need to avail the benefits of the venture capital assistance scheme because our team of experts is just a click away.

prism scheme and Its importance in the present day

PRISM Scheme And Its Importance In The Present Day.

Innovation in technology is essential for progress. Our government has implemented the PRISM scheme to support new ventures, SMEs, and innovators in order to compete in the global tech race. With this plan, they can gain access to much-required funding.

Scientific startup companies have seen significant growth recently. The PRISM program was developed by the government to encourage the adoption of scientifically sound technological strategies. PRISM is an acronym that stands for Promoting Innovation in Individuals, Startups, and MSMEs.

What Exactly Is the PRISM Scheme?

what exactly is the prism scheme

Technology advancement was prioritised with the launch of the “Technopreneur Promotion Programme” (TePP) in 1998–1999. After more than two decades, this programme has been revised and is now known as the Program for the Promotion of Innovations by Small and Medium-Sized Enterprises (PRISM). The goal of this programme is to help an individual innovator become a prosperous technopreneur by supporting and encouraging entrepreneurship on the part of the Government of India’s Ministry of Science and Technology.

It’s a way to get money to help tech innovators be as creative as they can be. Student innovators are recognised as a distinct group in the PRISM scheme, along with more traditional business owners and tech experts. Therefore, the scheme is open to anyone who has a workable, commercially viable, and new idea.

Who Can Apply in PRISM Scheme?

In the PRISM scheme, there are two stages. Phase one targets people from India, including academics, citizens, and creative thinkers.

The first stage is typically reserved for entrepreneurs whose ground-breaking ideas have the potential to become profitable businesses.

The second phase of PRISM is for innovations or innovators who have shown proof of concept with funding from the government or an established institution. Proposals for research and development are also welcome, as are collaborations with independent organisations like labs and universities.

It also helps groups that are established as separate entities under a different law, such as societies registered under the Society Registration Act, of 1860 or the Indian Trusts Act, of 1882.

Advantages of the PRISM Scheme for New Businesses

  • The scheme’s greatest benefit is that it is distinct from alternative startup loan assistance programmes. The Ministry of Science and Technology provides the funding for this project. This funding could also be used to create a working prototype and begin marketing the finished product.
  • The government’s assistance with evaluations and technical, and financial viability studies can point out where a tech startup needs to make improvements.
    The PRISM programme hopes to aid inventors in mastering the basics of the patenting process.
  • Beginning with the conceptualization of an idea, these professionals aid startups with both the technical and strategic development necessary for the commercialization of the project.
    As a result of the proliferation of government programmes like Startup India, Make in India (https://www.pmindia.gov.in/en/major initiatives/make-in-India/), and Digital India, technological innovation has gained new prominence. Therefore, the PRISM plan is intended to encourage even more creative thinking.

Focus Areas of the Scheme

Although the programme is available to any new technology venture, priority will be given to specific foci. Here are some of them:

  • Green technology
  • Clean energy
  • Industrially utilisable smart materials
  • Waste to wealth
  • Affordable healthcare
  • Water and sewage management
  • Any other technology in a knowledge-intensive area
    A startup idea, prototype, or concept in these areas is more likely to be prioritised for funding by the Ministry of Science and Technology. In the event that beneficiaries abandon the project, innovators must return the funding, plus 12% interest, to the DSIR. Therefore, get in touch with our team of experts for more detailed information and apply today. And our team will do everything to assist you in every step of the process.
start-up india innovation summit

Start-up India Innovation Summit

What Is Start-Up India Innovation Summit?

The start-up India innovation summit is the biggest start-up revolution to be celebrated through various international events that are held in different parts of the world. With the help of this innovation summit, we will be able to honour India along with the leading start-up destination in the world.

Participants of Start-Up India Innovation Summit

The expected global participation is by start-ups, innovators, venture capitalists, angel investors, corporates, incubators, accelerators, academic institutions and government stakeholders. The Summit is also anticipated to advance local debate on cutting-edge companies and innovations, allowing the general people to engage with and experience the thought leadership that India has attained in the innovation ecosystem over the previous few years. This is the best platform to showcase the skills and talent to the world and build a strong network with global ecosystem stakeholders.

Start-Up India Innovation Summit Program

start-up india innovation summit program

Relevant stakeholders who will be involved includes Ideation stage start-up, Validation stage start-up, Early traction start-up and Scaling stage start-up.

Procedure Post Submission

The application for the start-up India innovation summit will be pre-screened by the start-up India scheme and the evaluation will be done by designated evaluation committee that is formed by the department of promotion of industry and internal trade. In November 2022 the final results will be out.

The Key Objective Of Start-Up India Innovation Summit Are

As start-up India innovation summit is most recognized event for the world because of objectives of the summit.

  • To display India as a core innovation ecosystem of the world, for the sake of this one exhibition that will include start-ups from across India and from all different sector, we need to acknowledge the work.
  • To highlight the strength of Indian start-up ecosystem and to present them in front of all and optimize innovative start-up.
  • For start-ups with key PE/VC firms there will be facility for investment matchmaking.
  • High potential start-ups to be recognized and rewarded in India.
  • For start-up ventures to raise global and domestic money.
  • Bringing global ecosystem stakeholders together on a single platform.
  • To facilitate information distribution for potential entrepreneurs through mentoring connections, technical seminars, and ideation bootcamps.
  • To strengthen the global entrepreneurial culture.

Why To Register For The Event?

why to register for the start up innovation event
  • So, to show the opportunity to new and innovative start-ups through dedicated booth space at exhibition.
  • To get a networking opportunity from investors and stakeholders around the world.
  • Exchanging knowledge with fellow entrepreneur around the world.

Who All Can Apply?

The shortlisted startups will be given a complimentary startup pass to the event. Startup India, DPIIT will cover all additional fees associated with participation, such as travel, exhibition booth space, and lodging. All start-ups recognized by DPIIT can apply.

You may consider taking a help of Egniol Services Pvt. Lmt. for application.

How Will This Be Helpful?

So, as we look at this we can understand that start-ups needs constant motivation, support and help from the government and the people. So, here we can understand he will never do this. But, for sure Egniol, services will help.

Make In India 2.0 Step Towards Becoming Atmanirbhar

Make in India 2.0: A Step Towards Becoming Atma-Nirbhar

The make in india initiative was launched on September 25, 2014, with the goals of easing the way for foreign investment, encouraging innovation, creating a world-class manufacturing infrastructure, simplifying the way for businesses to operate, and boosting skill development. The initiative also seeks to open up new industries to foreign investment, modernise existing ones, improve efficiency, and forge a partnership between the government and industry by cultivating a constructive frame of mind.

Significant progress has been made since the launch of the Make in India initiative, and the programme is now concentrating on 27 different industries as part of Make in India 2.0. The Department of Commerce is responsible for the coordination of the service sector, while the Department of Promotion of Industry and Internal Trade handles the coordination of action plans for the manufacturing sector.

Achievements of Make In India 2.0

The Indian government’s efforts to find investors for the Make in India initiative fall under the umbrella of Investment Facilitation for Make in India Action Plans. Indian embassies and state governments are being assisted in their efforts to promote Make in India by hosting conferences, summits, road shows, and other promotional events. Efforts are being made to improve the country’s Ease of Doing Business and attract more foreign direct investment through investment outreach activities.

In recent years, the Indian government has taken several measures, on top of already existing schemes, to encourage more investment within the country. Measures taken by the government to encourage domestic production include the National Infrastructure Pipeline, a cut in corporate tax rates, relief for non-bank financial institutions and banks, and favourable trade policies. Using public procurement orders, the Phased Manufacturing Programme (PMP), and the Schemes for Production Linked Incentives of various Ministries, the Indian government has encouraged the domestic production of goods.

India’s foreign direct investment (FDI) inflow for the fiscal year that ended March 31, 2019, was a record-breaking $74.39 billion, up from $45.15 billion in the previous year. India has received a total of USD 358.30 billion in foreign direct investment (FDI) in the last six fiscal years (2014-20), accounting for 53% of the total FDI reported in the last twenty years (USD 681.87 billion).

For better Ease of Doing Business, measures are taken to streamline and standardise the way things are done. According to the World Bank’s Doing Business Report (DBR) 2020, India has risen from its previous position of 63rd to 62nd in the Ease of Doing Business ranking as a direct result of the government’s efforts to enhance the country’s investment climate. This is because of changes made to the processes of starting a business, paying taxes, engaging in international trade, and winding down an insolvent company.

Eligible sectors:

The Make in India 2.0 initiative, launched by the government of India, places a primary emphasis on developing two distinct facets of the Indian economy simultaneously. These two sectors are broken down even further into 27 different sub-sectors.

Manufacturing

  1. Aerospace and Defence
  2. Automotive and Auto Components
  3. Pharmaceuticals and Medical Devices
  4. Bio-Technology
  5. Capital Goods
  6. Textile and Apparels
  7. Chemicals and Petrochemicals
  8. Electronics System Design and Manufacturing (ESDM)
  9. Leather & Footwear
  10. Food Processing
  11. Gems and Jewellery
  12. Shipping
  13. Railways
  14. Construction
  15. New and Renewable Energy

Service

  1.  Information Technology & Information Technology enabled Services (IT &ITeS)
  2. Tourism and Hospitality Services
  3. Medical Value Travel
  4. Transport and Logistics Services
  5. Accounting and Finance Services
  6. Audio Visual Services
  7. Legal Services
  8. Communication Services
  9. Construction and Related Engineering Services
  10. Environmental Services
  11. Financial Services
  12. Education Services

How To Register Your Start-Up Under Make In India 2.0?

The Government of India has decided to take measures to achieve India’s goal of becoming “Atmanirbhar”. Consequently, it is taking several initiatives to devise more schemes that are similar to Make In India 2.0. And we at Egniol have made it our mission to not only spread awareness about these schemes but also to assist you with applying and registering for the same; with our team of experts that meet all your requirements.

North East Entrepreneurship Development Programme (NEEDP)

North East Entrepreneurship Development Programme (NEEDP)

What Is North East Entrepreneurship Development Programme (NEEDP)

To promote economic growth and job creation in the North Eastern region, the North Eastern Council (NEC) and the Indian Institute of Management (IIM) Calcutta Innovation Park have launched the North East Entrepreneurship Development Programme (NEEDP).

To this end, the North East Entrepreneurship Challenge (Hunt) is being held for entrepreneurs both established and aspiring in all eight North Eastern states. The goal is to select 270 entrepreneurs from this pool using a transparent, methodical selection process that guarantees equal participation from all regions. Pre-revenue stage start-ups will be guided via a pre-incubation programme, while revenue-stage start-ups will be put through an incubation programme.

The goal of this initiative is to help business owners and hopeful entrepreneurs in all the northeastern states expand and succeed.

Meanwhile, 120 start-ups will each receive a commercialization grant of Rs. 3 Lakh, while the top 20 will each receive a grant of Rs. 7 Lakh. Rs. 1 Lakh will be offered as a prototype grant to each of the 150 pre-incubation groups, and another Rs. 4 Lakh will be awarded to the top 25 achievers. This overall means that 270 start-ups can avail of a grant of up to Rs 10 lakh.

To aid in their commercialization and expansion, these firms will be chosen to participate in incubation and pre-incubation programmes. NEC’s initiative to build an inclusive entrepreneurship ecosystem will benefit the local economy and create jobs.

In addition, the business owners will be linked to a vast network of mentors and corporate executives. These business owners will be able to participate in boot camps, attend knowledge sessions hosted by industry experts, and access a formalised incubation curriculum by joining north east entrepreneurship development programme (NEEDP)

Benefits Of North East Entrepreneurship Development Programme (NEEDP)

Benefits of North East Entrepreneurship Development Programme (NEEDP) - Egniol 2
  • For Incubation Group: Each of the 120 start-ups will receive a Rs. 3 lakhs grant toward commercialization, with the best 20 receiving an additional Rs 7 lakh.
  • For Pre-incubation Group: A total of 150 start-ups will each receive a grant of Rs. 1 lakh to use toward a prototype, and the top 25 will each receive an additional Rs. 4 lakhs.
  • Get in touch with successful businesspeople, angel investors, and corporate executives willing to share their knowledge and experience as mentors.
  • Incubation programmes with a framework for instruction. Speakers at the boot camps and knowledge sessions will include IIMC professors, graduates, ecosystem partners, and subject-matter experts.

Timeline of NEEDP

  • Registration Starts: 2nd September 2022
  • Last Date for Applications: 21st November 2022
  • Announcement of Shortlisted Candidates: December 2022
  • Selection Events: December 2022
  • Start of Incubation/Pre-incubation: January 2023

Eligibility Criteria for North East Entrepreneurship Development Programme (NEEDP)

Eligibility Criteria of North East Entrepreneurship Development Programme (NEEDP) - Egniol 3

Pre-incubation:

  • The applicant must be an Indian citizen.
  • The applicant must be a resident of one of India’s eight North Eastern states.
  • The candidate must have a commercially viable idea or working prototype.

Incubation:

  • The applicant must be an Indian citizen.
  • The applicant must be a resident of one of India’s eight North Eastern states.
  • The applicant must be in the early stages of income generation or have a Proof of Concept for the business strategy.
  • At least one member of the team must be a full-time employee of the company.

In the last five years, the region has been slowly but unmistakably engulfed by the start-up entrepreneur craze. The region has become aware of the immense potential of entrepreneurship, which might alleviate a variety of issues, including unemployment and a lack of national exposure to local culture and resources. While state governments have presented a number of entrepreneurship development projects, this is the first time that a large-scale programme for entrepreneurs from the whole Northeastern area has been created.

Given the scope and scale of the initiative, the North East Entrepreneurship Development Programme (NEEDP) is anticipated to have a significant impact in terms of fostering the emergence of a new generation of first-generation entrepreneurs and strengthening the entrepreneurship ecosystem in the region as a whole.

Do not allow your start-up to fail from a lack of direction and capital. The North East Entrepreneurship Programme is meant to assist you in charting a path to success through individualised mentoring, capacity building, and guaranteed funding. Give yourself a chance to be one of the 270 entrepreneurs to win money and incubation help. Egniol will assist you during the complete scheme application procedure.

MSME Registration : Benefits, Importance & Documents Required | Egniol

MSME Registration : Benefits, Importance & Documents Required

MSME Registration

The Government of India is responsible for implementing guidelines, laws and policies, making it no different for MSMEs. The regulation for MSME is carried out by the Ministry of Micro, Small and Medium enterprises with assistance and guidance from the government throughout the country. Hence, Small and Medium Enterprises are provided with incentives, assistance and access to become as good and competitive in comparison to other SMEs.

It is a very well-known fact that a major section of the Indian Economy is dependent on MSMEs, which means that the livelihood of many people is dependent on MSMEs, meaning that MSMEs play a significant role in our GDP contribution. For enterprises to grow, the government has started an MSME registration program.

Importance Of MSME Registration

MSME Registration : Benefits, Importance & Documents Required | Egniol

It is true that MSMEs are the backbone of our country and contribute a significant percentage to the Indian currency, registering as MSME online with the government under this structure provides several benefits like taxes, the beginning of business and much more. For MSMEs to get more serious and competitive in the market the portal for MSME registration went live on 2nd October 2006. Earlier to avail the benefits of the Government, MSMEs had to have a restricted investment. The MSMEs are categorised by the amount of investment plough in by them into the business. As micro companies are those whose investments are up to Rs. 25 lacs, small companies’ investments are up to Rs. 5 crores and medium, it is up to Rs. 10 crores. The same for the service businesses will be the amount for micro businesses up to Rs. 10 lacs, for small businesses up to Rs. 2 crores and for medium businesses up to Rs. 5 crores. 

Now, the MSME classification is changed by Atma-Nirbhar Bharat Abhiyan, where the industrial and service sector categories are not different and have integrated the composite criteria for both venture and yearly income. Now under the new categorised standard, if the annual revenue of a company is less than Rs. 5 crores, for a small company it needs to be up to 10 crores, a company with Medium-sized businesses with assets of up to 50 crores and revenues of more than 25 crores would be classified as large companies.

Documents Required For MSME Registration

Proper documentation is required for MSME registration online. To register MSME PAN and Adhar card is required. These documents are all that are required for the registration process. Company-related matters will be directly downloaded by the MSME website from PAN card to GST and all other tax-related information.

Benefits Of MSME Registration

MSME Registration : Benefits, Importance & Documents Required | Egniol

MSME registration benefits everyone who registers, and here is a list of a few of the many benefits that your business will enjoy: 

    1.  MSME certificate holders get a loan at a much lower rate than from a bank.
    2. One who holds an MSME certificate also gets the benefit of tax exemption.
    3. Government issues licences and certificates so in this case as well registered MSMEs are given more preference.
    4. For an enterprise to get easy access to loans and credits, MSME certificates are a must.
    5. If a registered MSME is applying and getting an ISO certificate, then they will be reimbursed for the cost incurred to get the certificate.
    6. It allows keeping credit of MAT (Minimum Alternate Tax) to carry forward for 10 to 15 years.
    7. The overall cost of starting an industry decreases after various discounts and rebates post-MSME registration.
    8. It gets very easy to acquire government tenders because the Udhyam registration portal of government E-Market, acquiring E-Tenders is easy and direct.

Therefore, this shows how important it is to register for MSME. Registering for MSME not only gives you an MSME licence but along with that comes a whole umbrella of benefits like tax exemptions, low-interest rate loans, government projects, etc. so it is important to register for all small businesses.

And our experts at Egniol provide you with all the knowledge, guidance and help for registering for MSME and many other required services that have benefitted more than 200+ till now.

What is National Agriculture Infra Financing Facility? - By Egniol

National Agriculture Infra Financing Facility

What Is National Agriculture Infra Financing Facility Scheme (NAIF)?

A well-developed infrastructure scheme like National Agriculture Infra Financing Facility Scheme is essential for agriculture to progress and for increasing the output dynamics. Until infrastructure, particularly in the post-harvest phase, is developed, the fruits of farmers’ labour will not be used to their full potential, and they will not receive a just price for their efforts. The growth of such infrastructure needs to account for natural hazards, geographical differences, human resource development, and the maximisation of our finite land’s potential.

For this reason, the Department of Agriculture and Food and Workforce Development (DA&FW) developed the Central Sector Scheme to attract a medium-to-long-term debt financing facility to fund investments in economically sound projects involving postharvest management infrastructure and farming assets for communities.

Subsequently, it was announced in the 01.02.2021 budget that APMCs would also be eligible to receive benefits from the scheme. With the Cabinet agreement, the scheme was revised to be more welcoming of many perspectives.

Objectives of National Agriculture Infra Financing Facility Scheme (NAIF)

What is National Agriculture Infra Financing Facility? - By Egniol

Multiple objectives of national agriculture infra financing facility can be accomplished with the help of this finance facility for the various players in the agricultural ecosystem.

A. Farmers (including FPOs, PACS, Marketing Cooperative Societies, and Multipurpose cooperative societies)
  • A better marketing system would facilitate farmers’ increased value realization on by enabling them to sell directly to a wider audience of consumers. The result will be a rise in farmers’ average income.
  • Farmers will have fewer post-harvest losses and fewer need for intermediaries if they invest in logistical infrastructure. This will increase farmers’ autonomy and enhance their market access.
  • Farmers will be better able to maximise profits by timing market sales with access to modern packaging and cold storage systems.
  • Farmers may save a lot of money by pooling their resources and using them to boost output and maximise the efficiency of their inputs.
B. Government
  • Through interest subvention, incentive, and credit guarantees, the government can steer priority sector lending toward economically feasible projects. Because of this, a virtuous cycle of agricultural innovation and private-sector investment will begin.
  • Government efforts to lower national food waste percentages as a result of post-harvest infrastructure upgrades will position the agricultural industry to compete with global norms.
  • Central/State Government Agencies and local governments will be able to design successful PPP projects to attract investment in agricultural infrastructure.
C. Agri entrepreneurs and start-ups
  • If investors are willing to put money specifically toward the agricultural sector, innovative new technologies like the Internet of Things and artificial intelligence will be implemented.
  • Connecting the ecosystem’s participants will increase opportunities for business owners to work with farmers.
D. Banking ecosystem
  • With Credit Guarantees, incentives, and interest subvention, lending institutions will be able to extend credit with a lower level of risk. This plan will aid in expanding their consumer base and diversifying their business.
  • The refinancing facility will enable cooperative banks and RRBs to play a larger role.
E. Consumers
  • With fewer inefficiencies in the post-harvest ecosystem, the primary advantage for consumers will be a greater proportion of products reaching the market and, consequently, improved quality and prices. Overall, all eco-system participants will profit from the funding facility’s investment in agricultural infrastructure.

Who Can Apply?

What is National Agriculture Infra Financing Facility? - By Egniol
  • Agricultural Produce Market Committee
  • Agri-Entrepreneur
  • Central sponsored Public-Private Partnership Project
  • Farmer
  • Farmer Producers Organization
  • Federation of Farmer Producer Organisations
  • Joint Liability Groups
  • Local Body sponsored Public-Private Partnership Project
  • Marketing Cooperative Society
  • Multipurpose Cooperative Society
  • National Federations of Cooperatives
  • Primary Agricultural Credit Society
  • Self-Help Group
  • Federations of Self-Help Groups
  • Start-Up
  • State Agencies
  • State Federations of Cooperatives
  • State-sponsored Public-Private Partnership Project.

Loans up to Rs. 2 crores would be eligible for credit guarantee coverage from this financing facility under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. The government will fund the cost of this insurance. The DA&FW FPO promotion scheme includes a credit guarantee facility that can be used by FPOs.

Interest on loans taken out under this financing facility would be subsidized at a rate of 3% per year, up to a maximum of 2 crores. Subsidy funding will be provided for a maximum of 7 years. Whenever a debt exceeds 2 crores, the amount of interest that can be subsided is capped at 2 crores. The National Monitoring Committee has the authority to establish maximum levels and fixed percentages of financing for private entrepreneurs from the total financing facility.

The Scheme’s implementation period extends from the 2020-21 fiscal year to the 2032-33 fiscal year. The program’s loan disbursement period is set to conclude in six years.

EGNIOL‘s objective is to create India’s largest MSME and start-up ecosystem. In order to accomplish this, Egniol offers comprehensive solutions for the broadest spectrum of government benefits, management consulting, training, and mentorship for MSMEs & start-ups. Our mission is to be the go-to partner for all of a start-up’s needs, providing them with the proper advice for future growth. Contact us now for more information on this scheme or for consultation!

why you need nidhi prayas yojana scheme 2022

Why you Need Nidhi Prayas Yojana Scheme 2022?

What is Nidhi Prayas Yojana?

Nidhi Prayas yojana is a combination of a scheme lead and a scheme. Where, Nidhi has many schemes under its umbrella and PRAYAS is just an abbreviation for PR- promoting and A- accelerating Y- young and AS- aspiring technology entrepreneurs. The main goal of Nidhi Prayas is to help young and aspiring entrepreneurs to turn their start-up ideas into reality through prototype funding. Innovators should be using this Prayas scheme grant to create a prototype of their idea that can be commercialised.

The start-up or the innovator should possess ownership of IT if generated. Even though the monitoring committee of Prayas before the centre can only approve the final amount for start-up funding the maximum financing support an innovator or start-up can get is Rs. 10 lacs only.

What are the eligibility criteria for Nidhi Prayas?

What are the eligibility criteria for Nidhi Prayas Yojana

An innovator who doesn’t have a start-up or start-up founder can apply for this Nidhi Prayas grant.

In case the person applying is an Individual innovator without a start-up and wants to apply:

  • The individual who is applying for the Prayas scheme must be an Indian citizen who possesses a valid passport, voter id card, etc. which is Indian government-approved nationality proof.
  •  As of the date of application the age of the applicant should be a minimum of 18 years old.
  • If the applicant has worked in a team then the whole group of innovators should agree to one lead innovator and further the funds will be transferred to the account of the lead innovator post-selection. As per the agreement, the IP that will be generated will be in the name of an innovator or the team and then taken ahead for commercialization.

In case the applicants are co-founders of a start-up who are applying:

  • The individual who is applying for the Prayas scheme must be an Indian citizen who possesses a valid passport, voter id card, etc. which is Indian government-approved nationality proof.
  • As of the date of application the age of the applicant should be a minimum of 18 years old.
  • The start-up must be started in India with 51% of its equity held by Indian citizens further add the start-up should not be more than 7 years old.
  • The start-up is willing to develop a prototype for the new product and for that they have not received funding from other financing agencies.
  • Since its inception, the start-up should have not exceeded the turnover of Rs. 25 lacs.

       The generated IP will remain with the start-up.

 

      Extra time for working innovators OR students at any R&D organisation OR academic institution. NOC from their organisation or institution is required for workplace innovators or students. The NOC should include authorization to apply for PRAYAS as well as time to work on the PRAYAS project. The innovator would own the resulting intellectual property. 

 

Regardless of the aforementioned, the following will be excluded from Nidhi-Prayas consideration. Projects include pure software development, e-commerce, service solutions, and app-based solutions. Student internships or research grants in academic institutions or R&D organisations.

Guidelines to use the funds:

  • Outsourcing Fees for R&D/Design Engineering/Consultation/Testing/Expert Cost.
  • Raw materials, consumables, and spares.
  • Charges for a working model or process fabrication or synthesis.
  • Fees for business travel and event participation (up to 10% of approved project cost)
  • Patent filing fees (PCT- 10% of approved project cost)
  • Contingency – (A maximum of 10% of the authorised project cost)

The fund cannot be used to:

  •  Pay compensation to the recipient or their relatives.
  •  Pay back prior debts or promises made by the entrepreneur.
  • The Prayas funding will be used to cover the Incubator’s use costs. If such charges emerge, the recipient may pay them with additional funds.
  • Paying own house rent or renovating it.
  •    As a temporary strategy to supplement other professional endeavours.

Terms and conditions of the Nidhi Prayas scheme:

  • Grant up to Rs. 10 lacs will be provided by the Nidhi-Prayas scheme. Committee member of PC where the Prayas application is applied by the inventor that will be considered. The inventor will determine whether to accept, reject, or change it.
  •  The applicant will be completely dedicated to working on the prototype development for which funding is being sought, with the goal of commercialization. 
  • The project will last 18 months. The prototype must be completed within 18 months after receiving the grant’s first phase.
  •  If the project is incomplete the innovator will have to submit the incomplete project fund.
  •  If the innovator has begun a firm then he should have IP ownership rights to start-ups.
  •   Innovators or start-up teams must lock in mind that they can avail of the scheme only once and not more than once centre as well. Innovators are not allowed to avail of Nidhi-EIR and Nidhi-Prayas at the same time. If the innovator has received support from Nidhi-EIR then they must note it should not be for the same idea. 

How to Avail The Benefits of Nidhi Prayas Yojana?

We know that Nidhi Prayas is helping and motivating the Prayasee (innovator or start-up) with the best of its scheme, a good amount of funding and majorly focusing on young entrepreneurs, women entrepreneurs and those who are starting up for technologies. Egniol will help you the most with business and start-up consultancy, guide in application in a hassle-free manner. Our team of experts will give you the help and artwork you need for starting your venture and assist you with availing of the government benefits you deserve.

Here's why the right time in the market is everything for a startup's success

Here’s why the right time in the market is everything for a startup’s success:

Importance of Timing in Start-Ups:

Starting up is not a bed of roses. It requires a set of knowledge without which it may get very difficult to start up. Start-up is a very famous word these days. But do you know where the roots of starting up are in? Start-Up the word originated in the 1970s and referred to small companies that have astonishing growth potential. Still, it got famous in the 1990s and 2000s with the growth of companies like Microsoft and Apple at a growth pace like none other and never before.

So, the importance of timing in a start-up is very crucial. So, to have this one needs to have a properly detailed outlook as to how the work needs to be followed if one wants to start up. So let us look into the importance of timing in a start-up.

Due Diligence To Consider When Starting Up:

A heart and mind full of creativity, motivation and being driven are indeed required but these are just values, more of one requires consistency and now is the time to what things one should keep in mind before starting up. A thorough research of the right time, situation, demand and needs has to be done in real-time. If you are starting up, you need a number of growth strategies and journeys to keep in mind.

So when you are looking at a good plan and time to work this should ensure it counts using methods like crowdsourcing, angel investors, or even friends and family and paying them back for the initial help.

Looking at the business trends and seeing if there is any suitable option for you to lean on to the business is a must. Even the major answer to our doubt about success is in our other fellow businesses, start-ups and their successes, as this will enable us to know if we have the chance at this point in time to succeed or now. The most important thing is that you need to know your product or service and the target market to get this information.

Timing of the competition when it starts up:

Timing of the competition when it startup

So, now that you are looking at your competition you need to check and upgrade your skills and work accordingly. By identifying the weaknesses and the strengths of your competitors you can get a very good plan on how you can work to improvise your start-up and get the best out of the market by providing what your competitors do not offer. To stand out from the crowd is the only way along with working on strengths and competitor’s weaknesses to succeed. Keep in mind that extreme competition can dim your light. We may have a very bright plan and execution, but the time of competition can ruin our plan.

Analyzing the proper method at the right time:

A proper analysis of the business needs to be done before starting. This analysis should include financial analysis, which should give an idea of revenue, payback time, investments, etc. The second major analysis that should be done is of the workforce wherein you get to know where to get the best talent, what will your team look like and what will be your return on investment. Then one needs to make a serious marketing analysis where you get to know your exact target audience, demand, needs, competitors, suppliers, etc. All this will say if it is the right time for your Start-Up.

Reaching out to customers on time:

Reaching out to customers on time in startup

Reaching out to customers at the right time is a major part of the business. Getting consumers will be your first concern when you initially open your doors, so you should have a plan in place for contacting potential clients. If you don’t do enough outreach at the beginning of your business, you won’t get the customers you need to survive. The market may stop listening to you if you time your outreach too regularly. Timing is everything when it comes to customer outreach, so if you want to succeed, you must have a strategy in place before you ever open your doors.

The final plan for your start-up time is:

Being truly prepared for your work and business should be your ultimate goal and you should be sure about starting up. Training, experience, and, most importantly, a genuine desire to sell the product are required to become an expert. However, you must have a basic understanding of accounting and business or have access to a team of experienced professionals working for you. A company license can be obtained, but you must first demonstrate that you have the necessary physical and mental abilities to catch the balls thrown by your start-up.