The next important
question is, where to set up the unit? The entrepreneur
may like to locate the business in industrial
estates, areas, parks, complexes developed by.
HSIDC/HUDA. This will help entrepreneurs in identifying
suitable locations/sites for the project, besides
helping in the process of getting all the necessary
clearances for the project. Availability of land/plots
in the existing Industrial estates and information
on likely-to-be-announced industrial estates/parks/corridors,
can be obtained from the above two key agencies.
HSIDC and HFC
are the leading State level financial institutions
engaged in funding enterprises. Generally, they
lend for a medium term to long term basis i.e.
from 4 to 7 years. These loans are generally be
on term basis for acquiring capital investments,
such as acquisition of land, construction of building
and new machinery or setting up a new plant, etc.
Apart from this loans for for short term periods
for working capital requirements are also available.
Lending is generally done against hypothecation
of the assets of the enterprises. Besides, personal
guarantee of the entrepreneur is also taken so
that recourse may be had to him in case of default
by the enterprise.
Loans are also
available from IDBI, ICICI, SIDBI and BANKS as
per the viability of projects. Banks generally
lend on a short to medium term basis i.e from
6 months to 3 years for working capital purposes.
An entrepreneur has
comply with several laws. The following are some
of the most important legal compliances which
a start-up entrepreneur must comply with:-
INCOME
TAX : The financial year for the purpose
of income tax is from 1 stApril to 31 st March
each year. Every year at the end of the year,
the entrepreneur must file his return of income.
If the proprietor is not already a tax payer or
does not have a PANo, apart from filling his income
tax return, he must make application for permanent
account No.(PAN No.)
SALES TAX : If the business consists
of buying and selling goods and materials, a sales
tax registration number must be obtained by making
an application to the concerned authorities. In
case, sales or purchase are likely to take place
outside the state as well as within the State,
both Central Sales Tax Registration number as
well as the Local Sales Tax Registration number
must be obtained.
PROFESSION TAX : The entrepreneur has
to pay profession tax at the rates prescribed
in the laws of each state. Generally, such payments
are one time payments to be made on or before
a specified date. An application must be made
to obtain the Profession Tax Registration Number.
EXCISE DUTY : Excise duty has
to be paid on goods manufactured Excise registration
number must be obtained if the business consists
of manufacturing goods.
COMPANY LAW : These provisions
are applicable only to companies. Several records
and registers have to be maintained by a company.
IMPORT-EXPORT CODE NUMBER : In
case the business involves import or export of
goods including software, n importer-Exporter
code number(IEC No.) of Foreign Trade. This number
is necessary for receiving and making forex payments
for goods or services.
