The fact that almost 65% of the country’s population comprises of young age particularly under age of 35 years is reason that our country has gain status of young nations in the world. Although it is true that the more the working eligibile population , the more the unemployment problems are, but if are to name one sector that is immensely contributing to resolve such issues, is the Micro, Small and Medium Enterprises sector. Comprising of almost 90% by Micro enterprises the sector largely covered urban and rural areas which are heart and soul of the nation.
With the continous efforts and initiative brought in by government, the sector is on its path of bringing India among the list of leading economies of the world. The sectors contemplates the idea of entreprenuership and has categories the same into Micro, Small and Medium based on the criteria of investment and now includes the Retail and wholesale trade businesses (who are eligible to avail the benefits of priority sector lending) vide government’s circular dated 2nd July 2021
The latest threshold given for MSME published by M/o MSME vide its circular dated 1st June 2020 is as below:
Similarly, the Startups though may be small companies but significantly contribution in economic growth. They helps in creating more jobs which means more employment, and more employment means an improved economy. The government of India vide its Notification No. G.S.R. 127 (E) DATED 19th February 2019 provided a modified definition of Startup. Therefore an entitiy is to considered as startup which is
i. Upto a period of ten years from the date of incorporation/ registration, if it is incorporated as a private limited company (as defined in the Companies Act, 2013) or registered as a partnership firm (registered under section 59 of the Partnership Act, 1932) or a limited liability partnership (under the Limited Liability Partnership Act, 2008) in India.
ii. Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees
iii. working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation.
Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.
Not only such startups bring economic dynamism, but such are also bringing new ideas to the table and generate competition. Perhaps that might be the resaon that the governemnt have now shifted it’s growth apporach to make MSME’s and Start-ups engines of India’s Growth.
However in this entreprenuership journey, the professionals who are excellent with regulatory and complaince procedure, well updated with various schemes and intiatives, statutory requirements can be of great help. This professionals can guide the prospective entrepreneurs in the capacity as
The detailed list of opportunities for professionals in MSMEs and Startups:
The Professionals can provide Advisory services to MSMEs
1. Legal setting up of Enterprise (i.e. getting registration for startup, PAN, TAN, MSME etc.).
2. Selection of Organization Structure (Sole Proprietorship, Company, Partnership, LLP, OPC etc.).
3. Labour Law aspects.
4. Listing of MSMEs.
5. Taxation aspects.
6. Legal and Regulatory Compliances.
7. Financial advisory services.
8. Corporate Governance assistance and professional guidance.
9. Signing of Annual Returns of the Company.
10. Maintaining Statutory Registers.
11. Act as Legal advisor and Representative.
12. Handling matters of GST, Labour laws and Corporate Laws.
13. Conducting Secretarial Audit or Due diligence before seeking for the funds.
14. Handling matters relating to conversion of Sole proprietorship or Partnership to Companies or any other form of business entities.
15. Issuing Compliance Certificate to ensure compliance of various regulatory prescriptions in case of listing in MSME Exchange.
16. Handling matters of Public issue.
17. Preparation of detailed project report.
18. Providing services related to Custom Development Scheme and Export Promotion Scheme.
19. Guidance by Professionals to small and medium enterprises with regard to credit facility of 2% as interest subsidy through SIDBI.
20. Professionals help the organizations in availing the benefits of the MSME policies of central and state government similary those available for startups.
Additionally below are some ideas where the professionals can assist the budding startups:
1. By assisting start-ups to get recognition through stratup india portal
2. Drafting and creating esssential legal documents such as
b. Incorporation documents
c. A non-disclosure agreement for dealing between client and investor this will include certain documents and paper such as
– Employment contract, offer letters etc binding clause
– Confidentiality agreement
– Owning of information
– Obligation with repsect to crucial information
d. Terms and condition of work
e. Company policies etc
3. By laws – definite of working rules and regulations. Security provision etc.
4. Buisness advisor- fund raising options/opportunties, complaince moniterring other statutory compliance and mandates, periodical check etc.
5. Web portal of buisness-handling online query, improvisation, digital marketing
6. Accounting and finance matter: Taxation and Finance are the key areas alongwith Secretarial Compliances. Professionals are playing very significant and crucial role to help smoothen the business operations.
Often it has been seen that most of the startup, MSMEs enterepreneurs are either unaware of available schemes / facilities or reluctant to avail it’s benefits due to cumbersome application / approval process, resulting in shut down of their ventures even in the starting few years. Recognising the same the government has even provided mentorship facility on the startup india portal https://www.startupindia.gov.in/ , where the prospective mentor can connect and get access to all registered startups on its portal. This step has created yet another professional opportunities for those willing to provide thier expert advice and help nation move forward on its path of leading economy in the world.
Hoping you find this article informative and useful, to find out more of such information stay tuned to my next article.