Most of the people in our country are dependent on small businesses for their lifestyle and necessity.
What is a small Business?
Small business is a privately owned business which could be either a partnership firm, sole proprietorship firm, Hindu undivided family business.
Basic key considerations for small business:-
A business is considered to be a small business if posses the following factors which are as follows:-
- No of working employees: Small business is further divided into three categories and therefore, the limit should not exceed as per the category of business
- Micro enterprises: If your business falls under this category then the limit of employees should not exceed ten employees.
- Small enterprises: If your business falls under this category then the limit of employees should be in the range of 10-49 employees.
- Medium sized enterprises: if your business falls under this category then the limit of employees should be in the range of 10-49 employees.
- Turnover: The turnover of a small business should be something which does not exceed the amount of Rs.50 crore as a turnover.
- Investment: The amount invested as capital in a small business should not exceed Rs.10 crore.
Therefore, a person needs to comply with the above mentioned factors for falling in the category of small business in India.
If you Guys also want to share blogs and articles for Small Business Write For Us then you are welcome to do so by clicking on the link www.grassdesk.com
MSME and small business relation:-
In India small businesses have been regulated by MSME law since 2006. MSME refers to Ministry of small and medium enterprises a business correlated with MSME get are eligible for availing various benefits by Government. As our Indian Government promotes business in our country and therefore provides various benefits to the business man of this area.
Although small businesses come under MSME act but not every business can avail the benefits of MSME given by the government only the businesses who are being registered under MSME category can avail the below mentioned benefits.
Benefits of MSME:-
- A person can avail 50% of fee concession and subsidy in getting the trademark registration for their business.
- A person can avail the subsidy of the registration of patent rights.
- One can avail 100% tax exemption on new and innovative business ideas.
- One can avail collateral free loan approvals.
- One can receive the priority in sanctioning of loans.
- A low rate interest loan can be taken on business.
- It provides secured payments but with a limitation of 45 days. Therefore, MSME provides you a secured payment but has to pay the amount taken on loan or anything within 45 days.
- It provides a subsidy on electricity bills.
- It helps the people engaged in such business to get priority for Government tenders.
Therefore, MSME is very important for small industries, manufactures and sellers.