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.

Gujarat Industrial Policy Assistance For Start-Up Innovation

Scheme For Assistance For Start-Ups/Innovation

The state government of Gujarat has put significant effort into not only fostering employability but also launching startup incubators and accelerators to help the state’s young people learn business and management skills. For this reason, the State Government has implemented a policy of financial aid targeted specifically at new businesses. This article examines the Scheme for Assistance to Startups in Gujarat and its features, including its benefits, eligibility requirements, and application process.

The Scheme for Assistance for Start-Ups/Innovation was launched on 07/08/20 and is going to be operational for 5 years, that is until 06/08/25 because Startups and innovation are essential to economic expansion. In addition to creating jobs, they focus on smarter, generation-next solutions that foster economic vitality by fostering innovation and competition. Gujarat has attained a prominent position in the national startup ecosystem due to its inherent strength of pervasive entrepreneurial spirit.

Several startups have expanded their operations/products on both a national and international scale as a result of the expansion of the network of nodal institutions made possible by the Gujarat Industrial Policy of 2015. The primary goal of the Gujarat Industrial Policy 2020 is to promote research and development, innovation, and entrepreneurship. Therefore, the new scheme is being implemented to support startups and innovation at various stages of the startup life cycle.

Benefits of Financial Support for Start-Up/Innovation

Benefits of Gujarat Industrial Policy Financial Support for Start-Up_Innovation
  • Under this program, the innovator will receive a monthly subsistence allowance of Rs. 10,000 for one year.
  • Mentored startups will receive up to Rs. 5 lakh in annual funding.
  • The cost of raw materials/components and other related equipment for the innovative process will receive up to Rs. 10 lakh in financial assistance, pending approval by the screening committee.
  • An institution will provide mentorship services to assist the innovator.
  • The innovator may visit the institution to utilise startup-specific facilities.
  • As per government approval, a selected innovator will have free access to universities/libraries/government research labs of excellence/small and medium enterprises/public sector undertakings to clarify his innovative concept/ideas.

Criteria for Eligibility

Any individual or group of individuals with an innovative idea or concept are eligible to apply for financial assistance through the programme if they meet the criteria outlined in the eligibility requirements. To qualify as an institution that can provide assistance and mentor innovators, a business must either be a university or an educational institution, an incubator, a public or private research and development institution, or another type of establishment

Assistance Provided for:-

A. Support for Innovation:

  • The institution will provide mentorship services to the innovator.
  • The institution will permit the innovator to utilize its available facilities for Start-Ups.
  • A one-year sustenance allowance of Rs. 10,000 will be provided to the innovator whose project is recommended by the institution and approved by the Committee.
  • The institution will receive up to 5 Lakhs in assistance for mentoring services.
  • Upon committee approval, up to Rs. 10.00 Lakhs will be provided for the cost of raw materials/components and other related equipment required for the innovative process of the development of a new product.
  • The government will provide selected innovators with free access to universities/libraries/government laboratories/centers of excellence/government research and development corporations (GIDC)/centers of excellence (CoE)/public sector undertakings (PSUs) to gain greater insight into their innovative ideas/concepts.

B. Support after the Idea/Concept has been brought to market.

Up to Rs. 10.00 lakhs in marketing/publicity assistance will be provided for the introduction of an innovative product to the market.

C. The project will be eligible for additional benefits under MSME schemes.

How To Apply for the Scheme for Assistance for Start-Up/Innovation? 

In addition to promoting employability, the state government of Gujarat has also launched startup incubators and accelerators to help the state’s youth acquire business and management skills. For this reason, the State Government has enacted a policy of financial assistance for new businesses. And we at Egniol are available to assist you with our team of experts to apply for the Scheme for Assistance for Start-Up/Innovation under the state government of Gujarat, all you need to do is get connected with us. 

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.

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.

Tax Incentives for New Start-ups section 80-IAC

Tax Incentives for New Start-ups: Section 80-IAC

Section 80-IAC of the Income Tax Act was enacted by the government of India to encourage the growth of start-ups and to provide newly founded enterprises with a fair chance to succeed in India’s cutthroat commercial environment.

According to Section 80-IAC, a qualified start-up can deduct a sum equal to 100 percent of its revenues and gains. This provision was originally enacted as part of the Finance Act of 2016, with the purpose of encouraging entrepreneurs to create new jobs, and was subsequently changed as part of the Finance Bill of 2018.

In order to qualify for the deductions provided by this section, a start-up must have been in operation for at least three consecutive assessment years out of a total of seven (five until the assessment year 2017-18). With the introduction of the new Section 80-IAC, the government hopes to give a helpful incentive for start-ups and boost their growth in the early stages of business.

For this reason, an eligible start-up may deduct the whole amount of its profits and gains from a qualified firm for any three consecutive assessment years within the five years commencing with the year in which the start-up was established.

Here we take a quick look at the Act’s Section 80-IAC, which provides tax breaks for Indian start-ups.

Requirements

Requirements for Tax Incentives

Any start-up meeting the requirements below is qualified to receive the incentives described below.

Timeline

The incentive would be available to start-ups incorporated on or after April 1, 2019, and before April 1, 2021, for the assessment year 2018-2019. Start-ups formed between April 1st, 2016, and April 1st, 2019 were eligible for the benefit up until the 2017–2018 assessment year.

Incorporation and Turnover

To get the benefit provided by this provision, the following requirements must be met:

  • If the firm is a Limited Liability Partnership (LLP) or a corporation.
  • If the total turnover of the firm does not exceed INR 20 Crores in any of the preceding years commencing on or after April 1, 2016, and ending on March 31, 2021, then the business is exempt.

Taxpayers should be aware that the condition that the company’s annual revenue does not exceed INR 25 Crores applies to the seven years preceding the date of incorporation. In addition, the start-up’s annual revenue cannot exceed the prescribed maximum of INR 25 Crores for the year in which it claims the 100% deduction.

Nature of the business

The enterprise is engaged in an eligible business involving innovation, improvement of goods or development of processes or services, or a scalable business model with a high potential for employment generation or wealth creation, deployment, or commercialization of new products, processes, or services driven by technology or intellectual property.

Structure of the Incorporation

The start-up shouldn’t be created through the dissolution or reconstruction of an existing company. Start-ups that are the result of the assessee re-establishing, reconstructing, reviving, or reconstructing the business of any such undertaking under the conditions and within the time frame set forth in Section 33B are exempt from this requirement.

Machinery and Equipment

No pre-existing equipment or facilities should be employed in the formation of the company. However, if the following conditions are met, machinery utilised outside of India by a person other than the assessee will not be considered machinery or plant used prior for any purpose:

  • Where there is no record of the equipment or machinery having been used in India prior to the date of installation by the assessee.
  • It is if the machinery or plant is imported into India.
  • In determining the total income of any individual for any period prior to the date of installation of such machinery or plant, the assessee is not entitled to or has been permitted to take any deduction on account of depreciation with respect to such machinery or plant under the provisions under the Income Tax Act of 1961.

In addition, the whole value of any machinery, plant, or part thereof that was previously utilised for the purpose was transferred to the new business in the case of a start-up. This percentage shouldn’t go higher than 20% of the entire cost of the company’s machinery and plant. As such, it will be considered to have been founded notwithstanding the fact that the requirement required that it not be formed by the transfer to a new business of plant and machinery employed for any purpose.

Certification

A valid certificate of eligibility from the Inter-Ministerial Board, as published in the Official Gazette by the Indian Central Government, must be held by the start-up in question:

  • Where “eligible business” refers to a business that innovates, deploys, develops, or commercialises new products, services, or processes that are powered by technology or intellectual property.
  • Where “eligible start-up” refers to a corporation or limited liability partnership engaging in an eligible business that meets the following requirements.
  • Where “limited liability partnership” refers to a partnership described in clause (n) of subsection (1) of section 2 of the Limited Liability Partnership Act of 2008, as specified (6 of 2009).

Eligibility

Eligibility Criteria for incentives

Only Income from Eligible Business Will Be Taxed

According to the Income Tax Act, for purposes of calculating the deduction under this section, the gains and profits of the qualified business shall be estimated as if such businesses were the assessor’s only source of income throughout the relevant prior years.

Audit of Accounts

The deduction shall only be permitted if a chartered accountant has audited the start-up’s accounts for the preceding year and the assessee submits the audit report in the required format, fully signed and certified by a chartered accountant, together with his income tax return.

Transfer of Goods/Services between an Eligible Enterprise and Another Enterprise

For any products or services held for the qualified business that is transferred to another business conducted by the assessor, or vice versa. Also, if the consideration for the transfer does not equate to the fair market value of the goods or services, the business’s profits and gains are computed as if the transfer were made at fair market value. Nonetheless, if, in the Assessing Officer’s opinion, such computation presents unusual problems, the Assessing Officer may compute the profits on whatever reasonable basis the Officer deems appropriate.

Deduction limited to the Profits of Eligible Businesses

The deduction requested and approved under this clause cannot exceed the business’s profits and gains. In addition, if the deduction is requested and authorised under this section for any assessment year, no other section of this chapter will enable a deduction with respect to the same profits.

Assessing Officer with the Authority to Make Modifications

The Assessing Officer is authorised to make modifications when calculating the profit and profits of an eligible business based on the transaction’s realistic profit potential. This is the situation if the transaction between the assessor carrying on an eligible trade or business under Section 80-IAC and any other person is so structured as to produce excessive profits for the eligible trade or company. Nonetheless, if the arrangement comprises a defined domestic transaction referred to in Section 92BA, the number of gains from such transaction must be evaluated with reference to the arm’s-length price.

Central Government Accreditation

If the central government believes that certain types of start-ups are exploiting the Act’s provisions for their own benefit, it can decide to revoke the deduction for those businesses. Any category of a start-up may be excluded from this deduction at the discretion of the Central Government. The refusal of exemption will take effect as of the date published in the official gazette notice.

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.

Everything One Needs To Know About MSME Loans

MSME Loans: All You Need To Know Read the Complete Guide

What is MSME?

MSME marked its pillars in October 1999. Further, in September 2001, it got into 2 different divisions, namely, the Ministry of Small Scale Industry and the Ministry of Agro and Rural Industry. Further on, because of changes in the Government of India’s rules, 1961 on 9th of May, 2007 it was consolidated into Micro, Small and Medium Enterprises.

Objective of MSME loans:

The goal for which MSME was born was to develop small and medium sized businesses along with Khadi, Village and Coir to establish new businesses and generate more bread and butter for people dedicating their time and efforts by working for them. For being a supporting pillar and helping the MSMEs intensify their presence Ministry now sets policy for its governance and facilitates programs, projects, schemes and further to help them more, they even supervise their execution. 

A brief about MSME loans:

brief about MSME loans

So as soon as the MSME was developed we need someone to govern it, right? So, the governance for it was handed over to the Ministry of Micro, Small and Medium enterprises and since then it generates good employment and revenue for our economy.

 The Government of India provides loans to Micro, Small and Medium Enterprises to boost their growth up. India is the core of MSME and through it us getting benefits so we can see that this segment caters a large number of Audience. Getting the MSME loans offers strength and potential to business which has the plan to expand their networks and wish to serve the best through their products or services.

What role does RBI play for the upliftment of MSMEs?

RBI has made significant efforts to support MSME growth and has planned and mapped every step that will make it simple and beneficial for MSME and the general public to access services and benefit from them. The Government of India and RBI both work as a backbone for this by providing various programs, schemes, helps, etc. to the MSME.

Classification of MSME:

Manufacturing companies that produce or manufacture products for any industry, or that employee equipment and plant to add value to a finished good that has a unique name, personality, or use; and Service Businesses that perform or provide services;

MSMEs are now characterized on the basis of Composite Criteria of “Investment in Plant & Machinery / equipment and Annual Turnover” as per the updated Classification effective July 1, 2020.

What are the eligibility criteria for MSME loans?

What are the eligibility criteria for MSME loans

Various banks NBFCs, Private-Run Banks, State-Run Banks readily provide loans to MSMEs, Moreover NBFCs and State-run banks provide loans much quicker to MSMEs.

  • Any business entity, be it a small start-up, female entrepreneur, self-employed professional, proprietorship and partnership firm can avail an MSME Loan.
  • The task here is to determine what should be the amount of loan; so, it depends from person to person, business to business but the loan amount ranges from Rs.1 lakh to Rs. 50 crores.
  • There are some banks that, without any security, provide tiny collateral of Rs.10-20 lakhs up to huge amounts of Rs.40-50 lakhs, so the collateral amount range changes.
  • There is plenty of documentation required for unsecured MSME loans.
  • Certain MSME loans are being provided for various big or small reasons for the entity.

RBI and its characteristics:

The following are the framework’s key characteristics:

  • Banks or creditors should create three sub-categories under the Special Mention Account (SMA) category as per the Framework to identify account stress before an MSME loan account becomes a Non-Performing Asset (NPA).
  • Every MSME borrower has the option to voluntarily start a legal action under this Framework.
  • A committee-based method for choosing the corrective action plan will be used.
  • Deadlines have been set for making several decisions following the Frame-work.

So here as we all can see how important, integral and major role a Micro, Small and Medium Enterprise plays in developing our country, providing bread and butter to the economy and majorly helping the rural part of the country with employment and help. The government of India is working very well for better functioning, growth and ease of this sector. We, at Egniol, provide the best and most well-followed consultation and assistance throughout the process of MSME loans, your experience will be hassle-free and you will not have to double-check your work with us.

What It Takes To Make It As A Small Business Enterprise

Small Business Enterprise: What it Takes to Make It

Nowadays, small enterprises are all the rage. Initiated by pandemic laws and the Great Resignation, the number of internet small businesses in the United States increased by 2.8 million in 2020 compared to 2019. Now, in the year 2022, these small businesses, which typically have ten employees or fewer, have gained even more traction, redefined e-commerce and reshaping the creative and gig economies in the process.

small business owners frequently use platforms like TikTok to show viewers how easy it is to start a company from scratch. It takes more than just hard effort and relying on algorithms, however, to make a microbusiness successful, despite the fact that the revival of the gig economy has turned side hustles into actual businesses.

There’s no doubt that social media can be a powerful asset in expanding a company’s reach, but it’s far from the only option. In today’s extremely competitive e-commerce market, businesses of all sizes must rely on a wide range of tools to ensure their continued success.

What follows are some tips for aspiring small business owners to keep in mind as they get their first small business off the ground.

The website comes first. Then there is social

A website provides a safe, reliable, and easily accessible “home base” for a small business, which is essential in today’s world. It’s still uncomfortable to think about last year’s enormous Facebook outage that left many business owners in the dark.

Although social media has become an integral component of doing business and reaching one of the most prominent groups of customers in recent years — Generation Z, which accounts for more than 40% of worldwide consumers — it is not yet potent enough on its own to guarantee success.

Brands that want to do well on social media need to master their own platforms first. Having a designated area is essential for developing relationships with customers and coming up with innovative ways to display products and services. Next, small business owners should use social media platforms like TikTok and Instagram to forge even closer bonds with their audiences and create priceless recollections of their work.

Don't neglect SEO; take the time to learn about it

Don't neglect SEO; take the time to learn about it

Your company may be little, but you should aim for a global audience. Search engine optimization (SEO) is crucial to the success of any organisation, no matter its size. Search engines account for more than 90% of all clicks on the web; having good SEO and using relevant keywords is essential for standing out.

How local or specialty small businesses use search engine optimization (SEO) is an essential question, especially for smaller enterprises. The most successful business owners will find their niche at the crossroads of local and digital, where they can make direct, personal connections with clients via tools like Nextdoor, Facebook, and Google local marketing.

Taking control of your digital fate through search engine optimization SEO. Those who make SEO a regular part of their website maintenance see the best results. Furthermore, a top-notch SEO plan includes goals and objectives; it should aim to do more than just increase traffic and brand awareness. Consistently reaching the proper audiences online requires a relevant and interesting online presence.

Tune in to all the channels available

There appears to be no turning back from the demands of consumers in this new hybrid world. That reality should be reflected in the means through which businesses operate. Small business owners who aren’t willing to adapt and use every available resource will struggle to expand their operations. You may create a Google My Business page and look for opportunities to sell online. The easiest way for ambitious small business owners to enhance sales and brand recognition is to get to know their target market’s shopping habits and preferences.

One more strategy for expanding your audience is to join more than one social media network. To compete with TikTok, Instagram has lately included e-commerce features. With a larger online presence, you can make it easier for people to buy from you.

In the end, small businesses should be genuine and customer-focused. Maintain consistency with your brand’s values and goals, and give attention to how you may set yourself apart from the competition. Finally, do not be reluctant to use experts to assist you in getting your site configured properly.

Finally, small businesses need to be honest and customer-centric. Be true to your brand’s ideals and pay attention to how you may differentiate yourself from the rest of the market. As a final piece of advice, don’t be afraid to use the aid of professionals while setting up your site. Entrepreneurship and small company are like two wings of the same bird. That’s why it’s so important for economies of all sizes to foster the growth of small businesses and entrepreneurship.

ISO Registration _ Certification - Benefits & Types

ISO Registration | Certification – Benefits & Types

ISO is a global certification organisation that awards credentials to promote commercial innovation and growth. If a company has been registered or certified as ISO compliant, it must be adhering to the standards established by ISO without deviation or risking revocation of its registration or certification. When clients see this, they know the company can be trusted, and their faith in the business grows.

ISO Certification: An Overview

The path to commercial growth and innovation can be mapped out with the help of ISO standards, which are provided by certified companies. To develop particular criteria that guarantee the quality, safety, and efficacy of products and services, ISO Certification is required. It guarantees that the company’s goods and services are up to par with what consumers and authorities expect. It proves that the company has a management system in place that is up to the standards set by ISO, which is good for the company, its customers, and its staff.

Furthermore, ISO certification aids in showing ongoing development and progress. This also serves as proof that the subsequent procedure has been thoroughly tested and standardised. ISO certifications are available in many different areas, and each has its own unique set of requirements, such as those listed below.

  • The Management System,
  • Manufacturing Process, and
  • Service or the Documentation Process

Essential Requirements for ISO Certification

Essential Requirements for ISO Certification
  • Obtaining the appropriate ISO 9001 Certification.
  • Locating a reliable ISO certification body.
  • How the client thinks you are doing.
  • Enhancing the final product and customer service.

Standard ISO Certification Types

Here are the several types of ISO accreditation:

  • ISO 9001-2015
  • ISO 14001
  • ISO 10012
  • OHSAS 18001
  • ISO 20000
  • ISO 22000
  • ISO 27001
  • ISO 31000
  • ISO 13485
  • ISO 17025
  • ISO 11135
  • ISO 26000
  • CE MARK
  • ISO 50001
  • HALAL
  • GMP

Essential Elements of ISO 9001:2015 Standard

The fundamental components of ISO 9001:2015 are:

  • Leadership 
  • Primary emphasis on the customer
  • People’s Involvement
  • Persistent improvement
  • A structural approach to management 
  • Decision-making based on facts
  • Supplier connections that are mutually beneficial

ISO Certification Benefits

Improves Business Performance

Listed below are the benefits of ISO Registration:

Improves Business Performance:

Gaining ISO certification is crucial for establishing credibility in international trade and increasing productivity.

Enhances Marketability:

The company’s access to more customers is greatly increased with ISO certification.

Improvements in Service to Customers:

An organization’s commitment to providing high-quality services is bolstered by ISO’s ability to boost customer satisfaction.

Global Respectability:

ISO certification is crucial for establishing a company’s credibility in the international market.

Product Quality Enhancement:

With ISO certification, you know your product is up to par with global standards. Product quality difficulties may prevent acceptance if the standard is not met.

Useful for Government Tenders:

Having ISO on their side gives them an edge in government bids and the marketplace.

ISO Certification Required Documents

The first step in preparing the necessary paperwork is determining the sort of ISO Certification your company needs. There are a few key pieces of paperwork needed to get ISO registered or certified, and they are:

  • Identity and address proof of the applicant along with a copy of PAN Card and Aadhar card.
  • Passport Size Photographs of the applicant
  • Utility Bill or Electricity Bill
  • Copy of Sale deed in case of owned property.
  • If the place of business is a rented property, a Rent Agreement is required.
  • In the case of a company, a Certificate of Incorporation, the MOA and AOA.

Types of Audits Performed for ISO Certification

An ISO audit is performed as part of the registration process to ensure the legitimacy of the company’s or organization’s documented business strategy and operations.

A few examples of ISO Registration audits are as follows:

Internal Audit:

Trained employees perform the internal audit. It may also be done by a third-party agency.

Supplier Audit:

Supply chain audits are conducted by the organization’s lead auditors. It’s done to make sure everything’s running smoothly with the vendors and the company is getting exactly what it needs.

Certification Audit:

Certification audits are tasks that must be completed by auditors employed by Certification Bodies.

Assistance with Egniol for ISO Certification

  • If you need professional help, please get in touch with us.
  • Inquire About ISO Certification
  • Send Documents to Egniol Specialist
  • Gather the Required Documentation for ISO Registration Application
  • Meet all of the Eligibility Requirements for the Initial Evaluation
  • Carry out All Necessary Procedures
  • Obtain your ISO Certification!