WELCOME TO THE SESSION ON GOVERNMENT FORMALITIES, RULES & REGULATIONS IN STARTING A MSM Enterprise

1. WELCOMETO THE SESSION ONGOVERNMENT FORMALITIES, RULES & REGULATIONSIN STARTING A MSM Enterprise M. Asokan Deputy Director MSME – Development Institute Chennai

2. About MSME-DI

3. skill development EDP & MDP ACTIVITIES OF MSME-DI consultancy common facility

4. Manufacturing Micro = up to 25 lakhs Small = up to 5 cr. Medium = up to 10 cr. Service Micro = up to 10 lakhs Small = up to 2 cr. Medium = up to 5 cr. Definition of MSMEs

5. Role of MSMEsin Indian Economy • Employment generation (30.9 Million) • Creation of wealth/income • Overall-growth & development • Gross National Production (39%) • Growth of exports & import substitute (33% in total export)

6. SIDO = 1954 NSIC = 1955 KVIC = 1956 CIETI = 1960 Need for Govt’s intervention:- Liberalization & globalization of Economy Opportunities in increased access to a much larger market for their products & services But facing challenges in their scale of operation, technological obsolescence, inability to access institutional credit and intense competition in marketing Establishment of promotional agencies

7. Central Government formulation of policies & schemes programmes to provide direct and indirect assistance schemes for cluster development schemes for income & employment generation overall supports in credit, fiscal, marketing, technology & quality upgradation, establishing technology resource centre, sick unit rehabilitation, entrepreneurial & managerial development, empowerment of women-owned enterprises etc State Governments implementation of policies & schemes registration/de-registration of MSMEs regulating schemes of subsidy & concessions providing scarce raw materials, marketing assistance, long term loan assistance, industrial sheds, statutory regulatory assistance etc Primary responsibilities of Govt. Agencies

8. Cluster Development Programme Credit Guarantee Fund Trust Credit Linked Capital Subsidy (for technology upgradation) Purchase & Price preference MSME SIDBI & Nationalised Banks SIDBI, TIIC etc. NSIC Schemes & Govt. agencies

9. Micro Finance Programme Trade Related Entrepreneurship Assistance and Development (TREAD) Fund for Regeneration of Traditional Industries Financial assistance to SC/ST SIDBI & MSME MSME KVIC & Coir Board TADHDCO Schemes & Govt. agencies….

10. Prime Minister’s Employment Generation Programme (PMEGP) Performance & Credit Rating External Market Development assistance for Coir Industries KVIC/KVIB & DIC NSIC Coir Board Schemes & Govt. agencies…

11. Mahila Udyam Nidhi (MUN) National Equity Fund (NEF) Integrated Development of Leather Sector Assistance to States for developing export infrastructure & other activities (ASIDE) SFCs & Banks SFCs & Banks CLRI State Level Export Promotion Committee Schemes & Govt. agencies…

12. Creating a project/business plan Making a product choice Setting up Infrastructure Naming & registering a business Choosing a form of business organisation Choosing the location Pricing the product Compliance with regulatory requirements Financing a start up business Sourcing process/raw materials/machineries & equipments Hiring human resource Workout a marketing strategy etc. Starting a MSME – A quick review

13. Regulatory requirements: EM registration Local licences Companies Act registration Inspector of Factories registration Corporate Affairs registration Govt. Agencies: DICs/MSMEs/Industrial Associations Municipality/Corporation Company Affairs Inspector of Factories Corporate Affairs Government formalities, Rules & regulations

14. Cooperative societies Partnership Deed Central Excise Sales Tax Pollution Registrar of Cooperative Societies Inspector-General of Factories Superintendent/Collector of Central Excise Local Sales Tax Dept. State Pollution Control Board Govt. formalities…

15. Power connection Employing more then 10 workers with power connection Effluent disposal, gaseous waste, etc F.P.O.- license for fruit & vegetable based products/ Food products Electricity Board Chief Inspector of Factories District Health Office/Public Health Dept. Fruit & Vegetable Preservation Office Govt. formalities…

16. Drug License for Drugs & Cosmetic Products Patents & Designs Registration Trade Mark Registration ISI/BIS Mark Director of Drugs Control Controller of Patents & Designs Registrar of Assistant Trade Marks Bureau of Indian Standards Govt. formalities…

17. Import – Export Code Number Registration under VAT Service Tax Registration Income Tax Factory Accommodation Industrial plots/sheds Joint Director General of Foreign Trade Asst. Commissioner Commercial Taxes Superintendent of Central Excise Income Tax Dept. SIDCO Limited Govt. formalities…

18. Conclusion • MSMEs an important sector in our economy • Contributes to Gross Domestic Production • Generates employment and income • Hence to be protected & given priority while framing policies, grant of funds and to be nurtured with concessions & regulations. Hope this session would have given an overall coverage on Govt. departments and agencies to be contacted by MSMEs to complete the formalities to remain under the government schemes. THANKS TO VIT PARTICIPANTS