Thursday, September 15, 2016

New Procurement Norms and Fast-Track Exit Procedures

It is mandatory for government departments and public sector units to procure at least 20% from the micro and small organizations. The rule that came into effect from April 1, 2015 was designed to create greater opportunities for micro and small enterprises (MSE). To support the entrepreneurial ecosystem, the Startup India Action Plan recommended additional relaxation for tiny and new business units.

Wednesday, September 14, 2016

Self-Certification for Startups

The Government has brought into effect most of promises regarding ease of doing business as laid out in the Startup India Action Plan. Apart from getting their businesses registered in one-day, startups can now self-certify on labor-related statutory compliances.

Sunday, September 11, 2016

One-Day Company Registration

At the time of announcing the Startup India Action Plan and Budget 2016, the Government had promised to expedite business registration processes as a measure of improving ease of doing business. One-day business registration, after some initial technical glitches, has become a reality. Private companies, OPCs and public companies can now get up and running fairly quickly.

Wednesday, September 7, 2016

Collateral-Free Loans for Small Businesses

Startups, micro and small enterprises usually do not find much favor with banks. To break this pattern in India, the Government has come up with various schemes that ensure small business loans at relatively easier terms. Most schemes are backed by credit guarantee and refinance for the lending institution. It helps the borrowers by doing away with the requirement of collateral or third-party guarantee. It protects the lenders’ interest in case of a default, making them more willing to sanction loans to micro and small players. It is important to note that banks may insist on personal guarantee by proprietor/partners, which is not considered a third-party guarantee. This is because in case of proprietorship or partnership, the owners have unlimited liability.