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Management-and-entrepreneurship-Unit-6-->View question

List and briefly explain the steps to start an SSI?

List and briefly explain the steps to start an SSI []


Asked On2017-05-15 21:09:51 by:Rajiv

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Answers

PRODUCT IDENTIFICATION : 

PRODUCT IDENTIFICATION The overriding reason for anyone to think of establishing a SSI unit can be summarised in one word - OPPORTUNITY. If one can see an opportunity to provide a product or service in a manner to generate sufficient surplus, then one way is to start up a SSI unit. This is the first step towards setting up a industry and is called…

FORM OF OWNERSHIP : 

FORM OF OWNERSHIP SOLE PROPRIETORSHIP FAMILY OWNERSHIP PARTNERSHIP This is the entrepreneur’s personal decision.

Location of unit : 

Location of unit PROXIMITY TO SOURCE OF RAW MATERIALS NEARNESS TO THE MARKET GENERAL BUSINESS CLIMATE OF THE REGION CLIMATE AND ENVIRONMENTAL FACTORS

APPROVALS : 

APPROVALS Every SSI unit has to comply with various regulations in force. These include regulatory, taxation, environmental and certain product specific clearances.

APPROVALS : 

APPROVALS Licensing in the Industries sector is governed by the licensing exemption notification issued by Govt. of India in July 25 1991 under the Industries (Development and Regulation) Act, 1951. In SSI, there are virtually no licensing restrictions. No industrial license is required except in case of 6 product groups included in compulsory licensing (These products groups mainly cover products that can only be made in large sector)

APPROVALS : 

APPROVALS But if a small-scale unit employs less than 100 workers with/without power then it would not require a license from the Govt. of India even for the 6 product groups covered in licensing under Schedule II of the notification

CLEARANCES : 

CLEARANCES An entrepreneur has to obtain several clearances or permissions depending upon the nature of his unit and products manufactured

clearances : 

clearances Regulatory or Taxation Clearances Registration under Sales Tax Act - Commercial Tax officer of area concerned Registration under Central Excise Act - Collector of Central Excise or his nominee for area Payment of Income Tax - ITO of the area concerned Registration of Partnership deed - Inspector General of area concerned Calibration of weights & measures - Weights and Measures Inspector of State Power Connection - Designated Officer of State Electricity Board Employee strength exceeding 10 with power connection or 20 without power - Chief Inspector of Factories

Arrangement of finance : 

Arrangement of finance FIXED CAPITAL : THE FINANCE REQUIRED FOR SETTING UP INFRASTRUCTURE LIKE LAND, BUILDINGS, MACHINERY ETC.. This can be generated by… PARTNERSHIP BANK LOANS

ARRANGEMENT OF FINANCE : 

ARRANGEMENT OF FINANCE WORKING CAPITAL: It is necessary for buying raw materials and recurring expenditure. It hugely depends on the financial position of the firm.

Starting production : 

starting production After the basic trial runs, commercial production has to begin with proper quality checks in place.

Marketing the product : 

Marketing the product This is the last but the most important step in realizing the business ambition. No business is complete without selling the products and ensuring that the revenues flow into the organisation. Marketing is the prime way to enhance the business and the best way to survive in this competitive world.

Answerd on:2016-01-06 Answerd By:scribed

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