MSMEs are the backbone of the Indian economy, contributing approximately 30% of the country’s GDP (Gross Domestic Product), 45% of manufacturing output, and providing employment to 11 crores of India’s population. The Government of India has been proactive to ensure that all the benefit of these MSME schemes reaches to the MSMEs in time. India’s entrepreneurial spirit is undying. However, there’s one roadblock that poses quite the problem: capital shortage. To tackle this head-on, our government has launched numerous projects for funding small-to-medium businesses.
So, if you are a business owner looking for funding options, here are the top government schemes for MSME and start-ups you can consider.
Udyam Registration and Certificate |
MSMEs are the backbone of any economy, adding not only to the country’s GDP but generating employment in towns, suburbs, and villages. However, registering as an MSME was not always easy for many new business owners. They had to visit local bodies and pay the registration fee before they could be considered a legit MSME.
So, many business owners missed out on the benefits of government schemes meant for MSMEs due to the tiresome and confusing registration process. Udyam Registration Certificate is one of the best government schemes for MSMEs in that regard.
Udyam fast-tracks registration of MSMEs through the online process. New owners just have to visit the Udyam registration portal, provide their Aadhar card, and they get a permanent MSME registration without paying any fee. The Udyam Certificate also makes it easier for owners to avail of government schemes for MSMEs, like subsidised loans.
Pradhan Mantri Mudra Yojana |
The Pradhan Mantri Mudra Yojana or MUDRA scheme is a unique credit scheme that offers low-interest business loans to MSMEs and start-ups in the non-corporate and non-farming sectors.
Under this government scheme for start-ups and MSMEs, you can avail of three types of loan products
Shishu category – A loan of up to Rs. 50,000 is available for start-ups and small businesses in their initial stages under this category.
Kishor category – Mid-aged businesses looking to expand operations can avail up to Rs. 5,00,000 under this category.
Tarun category – Under this category, experienced businesses can avail up to Rs. 10,00,000.
Start-up India Scheme |
The Start-up India scheme is a trademark scheme of the Indian Government. Its purpose is to provide a healthy ecosystem for business and promote entrepreneurship among the citizens of the country.
This government scheme for start-ups provides the following benefits to eligible businesses:
Online self-certification compliance for the country’s labour and environmental laws.
Under the Start-up India scheme, the Government will not conduct any inspection for 5 years to check compliance with labour laws. However, an assessment may occur if a credible complaint for any violation is approved by at least one level senior to the inspecting officer. In the case of environmental laws, the Government performs random checks.
Fast-track application for start-up patents.
Tax exemption under Section 80 IAC and Section 56 of the Income Tax Act.
Easy process for winding up the company in case of bankruptcy.
Register with Shilpkar to get seed funding for your enterprise!
If you are actively looking for business capital, ‘Shilpkar’ offers seed funding for start-ups and MSMEs. Mumbai-based ‘Treta Marketing and Services Pvt Ltd’ is all set to kick start ‘Shilpkar’, an organization to encourage new enterprises by providing them seed funding in the range of ₹ 15K to ₹ 15 Lakh.
‘Shilpkar’ is going to organise an event very soon where potential beneficiaries will be given an opportunity to pitch their business idea.
With the mission to promote new ventures…new thinking ‘Shilpkar’ also seeks to motivate and push local and indigenous businesses and keep them at par with other rising companies by offering offer a no-cost or low-cost business development mentorship, capital arrangement, technical assistance, and other related services to budding entrepreneurs of the country.
Kshitij Tikku and Aditya Tikku, the formulators of ‘Shilpkar’ said, “We don’t want to be a shark in the business world, nor do we have any ambition to be such….but we are looking forward to becoming the ‘Shilpkar’- one who builds or gives shape to beautiful objects. We are going to start ‘Shilpakar’ with the motive to help others fulfill their dreams. We are willing to listen to entrepreneurs pitch ideas for a business or product they wish to develop.”
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