How To Set Up A Small Scale Industry or Business in English

 How to set up a small scale industry? in English | Are you planning to set up a small scale industry? In English Read this article in English to learn about how to set up and establish a small scale industry.

There is absolutely no need to seek the formal permission of the Central or State Government to set up small scale industries and any small factory falling under this category. But those small factories who want to start production of things that require foreign parts, they need to get prior approval of the Development Commissioner (Small Scale Industries) in relation to their production.

    How To Set Up A Small Scale Industry or Business in English

    In addition to the Factories Act (Factory Act), ‘Shop & Establishment Act’ and Municipal Corporation and the rules made in relation to the supply of raw materials to the small factories by the officials of the State Government or local institutions. It is necessary to follow.

    Registration of Small Scale Industries In English:

    Table of Contents

    Although registration of small scale industries with the State Directorate of Industries is not necessary, it should still be registered by SDI for your benefit. There are some fixed items that have to be licensed from the state government or the central government to make, in addition to this, provision of Incentive Benefits has been made by the government for this category of industries.

    This facility is provided to the same small scale industries, which are registered by the State Directorate of Industries, whether the industry is registered or not but it is necessary to follow the rules made by the State Government, hence registration of industries in SDI Should be done.

    There are two types of registration of small scale industry:

    (1) Provisional Registration

    (2) Permanent Registration

    Provisional Registration of Small Scale Industries is done before the unit comes into production. This registration certificate is initially granted for two years. If the unit is not able to come into production during this period, the registration is renewed with the concerned State Industries Directorate.

    This renewal is done for only six months. When the unit comes into production, a permanent registration is done by giving an application to SDI.

    How to Select a Suitable Business?

    The books of the industries which can help in increasing income or earning a living independently, are given in this book. By the way, all the industries and businesses mentioned in it are capable of making profits and millions of people are making good profit from these chosen industries and businesses in the country and abroad, but this thing is also worth remembering in this regard.Nowadays, there is so much competition in almost all industries that the new people who enter this field as compared to the old and experienced people may also face some struggle to run their business smoothly and its It also requires good business acumen.

    To choose the industry which may prove to be more suitable for you, it may prove to be a guide for you by thoroughly considering the facts given below:

    (A) Whether there is enough scope in the area around you to sell the items you want to produce? If you want to sell your production in remote places and market also, then can you raise appropriate resources for it or not?

    (B) There is more competition in the industry you want to start, so how can you sell your goods successfully along with your other competitors?

    C) Whether you have the necessary ‘power connection’ and location arrangement for that industry or not?

    (D) To sell your produce profitably and quickly, can you keep its price slightly lower than other competitors (or can produce good goods from them at a reasonable price)?

    (E) Whether the raw material required for your factory can be available to you in sufficient quantity and at a reasonable price?

    Based on the facts mentioned above and using your business sense, you can easily choose the business which can prove more suitable for you.

    Government Facilities For Small Scale Industry:

    Special attention has been paid to the development of small and cottage units under the government’s Industrial Liberal Policy. These units have been exempted from various controls and bureaucratic control.

    With a view to making small scale industries oriented, 846 items have been specially reserved by the government for production of small scale units (Exclusively Reserved). It also has a provision to develop and renew the traditional profession and work of rural artisans on the basis of research and tools and tools.

    Other useful features are described below:

    Convenience Facility for Factory:

    ‘Industrial Estates’ have also been set up in various cities, towns and rural areas by ‘Director of Industries’ in various states where Entrepreneurs are willing to set up factories. Buildings to be built may be available on rent. Similarly, allotments are also allocated for individual plots as per requirement for each factory in the industrial sector.

    The rent of these industrial settlements or plots varies according to their area and their condition. Generally, this fare is very low. The rent for the first five years is to be paid at a subsidized rate. At some places, the state governments also provide plots filled with facilities of water, electricity etc. to build a factory building inside the industrial colony.

    In order to get a place for factories in industrial settlements, the necessary application should be given to the ‘Director of Industries’ of that state.

    Whom to Contact for a Power Connection? 

    Small scale industries are also given electricity at subsidized rates to run the factory. Necessary information for this can be obtained from the local electrical supply undertaking and the necessary application for this should be approved and sent from the Director of Industries.

    Credit Facilities for Small Scale Industries:

    Since credit loans have an important role to set up and run a small scale industry. Small scale industries sometimes have to face difficulties due to the non-availability of loans at easy terms and low interest rates. In addition, many times financial institutions provide late loans or insufficient loans.

    Keeping these problems in mind, the Small Industries Development Bank of India has been set up by the government. It mainly provides funds to financial institutions under the Automatic Refinance Scheme or Normal Refinance Scheme.

    Special new features by the Small Industries Development Bank of India (SIDBI), such as Composite Loans under Single Window Concept To strengthen the infrastructure of State Financial Corporations. Provision has been made for Concessional Loan and Factoring Services.

    In addition, under many schemes, small industries are provided loans either directly by the Small Industries Development Bank of India (SIDBI) or through state financial corporations and commercial banks, details of which are given further is .

    There are generally two types of loans:

    (a) Long Term Loan  

    (b) Working Capital Loan 

    Term loan is required to set up a factory. This loan is given on the basis of investment on fixed capital of the factory such as land, building, machine, etc. This loan is provided by financial institutions by mortgaging the immovable property of the factory. A working capital loan is required to run the industry smoothly.

    This loan is pledged by commercial banks on the basis of mortgage movable properties such as raw materials, finished products and sales credit. Cash credit is given in the form of Over Draft and Book Debt.

    Term loan is mainly provided by the State Financial Corporation. Financial corporations are in almost all states of India. This financial corporation is an undertaking of the respective state government.

    In states where financial corporations have not been formed, term loans are given by the respective State Industrial Development Corporations. Working Capital loan is given by commercial banks.

    Such commercial bank can also provide term loans. But still, working capital loans are generally provided by banks. Necessary information is being given in relation to the main sources from which the government can get loan from the government.

    (A) Loan from State Government:

    Generally, small scale industries can get loans from the respective State Directors of Industries or the office of District Industries Officers under them under the Assistance Act under the following conditions:

    Rate of Interest:

    The rate of interest on the above loans given to small scale industries has been kept very low, which keeps on decreasing with the passage of time.

    Other loan related information:

    1. This loan can be repaid within a maximum period of 10 years.

    2. In some states ‘District Industries Officers’ or District Collectors have been empowered to give up to 25 thousand rupees.

    3. In order to provide assistance to the industrial cooperatives for the development of their resources, the Central Government may give an amount equal to 75 percent of the capital of those cooperatives in the form of two-year loans. The remaining amount can either be obtained from the state government in the form of loan or the organization has to arrange it for itself.

    How To Set Up A Small Scale Industry or Business in English

    (B) Loans available under ‘State Finance Corporation Act’ (Loan Available under ‘State Finance Corporation Act’):

    Under the ‘State Finance Corporation Act 1951’, ‘Finance Corporations’ have been set up in various states to provide ‘long term’ and ‘medium term’ loans to medium and small scale industries.

    To avail loans from these, the following things should be kept in mind:

    (i) State Financial Corporation – In addition to lending money to small industries as agents of state governments, they provide long-term, medium-term and short-term loans from their own capital.

    (ii) These corporations usually charge 12 to 20 percent annual interest on loans. However, the interest rates are different in different states.

    (iii) In many states, these finance corporations give 0.5 percent annual rebate in interest to those who repay the loan on time.

    (C) Loan Scheme of State Bank of India:

    With a view to giving loans to small scale industries, ‘State Bank of India’ has also started a ‘loan scheme’ – This scheme was started in the beginning of 1953 in 6 cities selected as a test, but now all of this bank The branches have started functioning as per this scheme.

    With the idea of ​​convenience under this scheme, the entire country is divided into four regions:

    (1) Calcutta,

    (2) Mumbai,

    (3) Chennai and

    (4) Delhi.

    In each of these areas, such centers have been selected where this scheme is being run intensively.

    The main information regarding this scheme is given below:

    (i) From now on, small industrialists will have to go to only one lending institution for their entire credit related needs, and not to different institutions.

    (ii) Small industrialist taking loan can apply to the agent of State Bank of India. If his factory runs on the basis of cooperative, then he should send his application form to a ‘co-operative bank’ for the loan – this local ‘lending institution’ or ‘bank’ will get the application form, act on it or else Will forward the application to the appropriate institution or institutions. In fact, all these lending institutions work as a complement to each other.

    (iii) Under the ‘loan scheme’ mentioned above, the functioning of the State Bank has also been made very liberal and it is now possible that the raw materials used in small factories and the raw material or semi-finished products or ‘semi’ By changing the ‘finished goods’ under their locks, they can give loans on ‘factory type basis’. In appropriate cases, this loan can be given even if the goods are in a state of traffic.

    (iv) State Bank of India has also entered into an agreement with National Small Scale Industries Corporation Limited. With the help of this rule, small scale industries which get orders from government departments buying goods, small industries can take loan from State Bank of India for an amount equal to the cost of raw materials.

    (D) Other Government related Schemes:

    1. Generally

    The Government of India has also formulated a scheme to give impetus to commercial banks and private lending institutions. The main objective of this scheme is to encourage ‘lending institutions’ in relation to lending to small scale industries.

    Banks, which provide loans to small scale industries, have some security arrangements in this scheme to protect them from the risk of non-repayment of loans. According to this scheme, the bank and the Government of India will lend the loan to such losses.

    At present, the above guarantees are given only on loans given by a few selected lending institutions or banks. In addition to many ‘scheduled banks’ or state cooperative banks and lending institutions in the list of these banks and lending institutions, other banks can also avail this guarantee facility on loans given to small scale industries, provided that the loan is less than Less than 25 percent should be the sum of any bank or lending institution included in the above list.

    Loans for factory building, machines or working capital can also be guaranteed. An essential condition of this guarantee is that the loan amount be spent on the work for which the loan is actually taken.

    Appropriate guarantees are given on loans given to small scale industries which can be repaid on demand by the bank or whose duration does not exceed 10 years and whose approval is granted on or after 1 July 1960.


    This guarantee can also be found on those loans approved before 1 July 1960. Those who have been reapproved normal or properly after this date or whose duration has been extended – In such cases it will be seen before guaranteeing that the previous loans have been repaid at the right time by the concerned SSI.

    Before or after sanctioning the loan, the ‘application’ should be taken for a guarantee of 1 year only, even after that, if necessary, this guarantee can be extended for a period of 6 months or more divided at a time, But from the date the loan amount is taken, this period should not be more than 10 years.

    2. Seed Capital Scheme:

    The seed-money scheme is sponsored by the Small Industries Development Bank. The scheme is operated by the state’s most loan-seeking institutions (Term Loan Lending Institution).

    Under this scheme, financial assistance is provided to new entrepreneurs who are capable of successful establishment and setting up of industries, but they have sufficient means to invest Promoter’s Capital. (Resources) does not live.

    This financial assistance is given without interest. Nominal Service Charge is charged at the rate of just 1 percent. Under this scheme, assistance is mainly provided to the entrepreneurs who are technically or professionally qualified or proficient (Skilled) or experienced (Experienced).

    3. Mahila Udyam Nidhi (Mahila Udyam Nidhi-MUN):

    Keeping in mind the integrated development of women, the MUN-Scheme has been adjusted by the Small Industries Development Bank, which is implemented by a commercial bank. Under this office, financial assistance is provided to new talent-rich women entrepreneurs.

    Facilities provided to backward areas in industrial form (Government Facilities for Industrially Backward Ares):

    For decentralization of industries and development of all sectors, the government has declared those areas which are in complete lack of industries as industrially backward areas. And for the development of industries in these backward areas, the government has provided many facilities.

    The main of which are:

    (1) Government institutions providing loans for setting up new small-scale industries or growing industries in which the interest of Small Industries Development Bank of India, Industrial Finance Corporation of India, Industrial Credit and Investment Corporation of India. But provide loans.

    (2) It also provides loan waiver for the industries of backward areas.

    Facilities for buying Machines on Installments:

    It is often seen that small industrialists are unable to install the latest machines in their factories due to lack of capital. The result of this is that the production in their factories is low or the goods are not of excellent quality.

    How To Set Up A Small Scale Industry or Business in English

    Therefore, ‘National Small Industries Corporation Limited’ has been set up by the Government of India – its head office in Delhi and in Bombay, Calcutta and Madras, to facilitate such industrialists to buy machines on installments. It has a regional office.

    The addresses of its Head Office and Regional Offices are given below:

    (A) National Small Industries Corporation Limited, Okhla, New Delhi-20.

    (B) National Small Industries Corporation Limited, 5th-Floor, Janmabhoomi Chambers, Fort Street, Mumbai.

    (C) National Small Scale Industries Corporation Limited, 116-A Lower Circular Road, Calcutta.

    (D) National Small Scale Industries Corporation Limited, 106-A Mount Road, Chennai.

    Under the ‘Hire Purchases System’, on behalf of the Small Scale Industries Corporation Ltd. mentioned above, interested people can start a new industry or increase the existing production capacity or replace the machine of the old model. Can.

    Other Important Notes:

    The installment of the machine taken according to the terms of ‘hire purchase system’ can be paid after 2 years after the first date – the remaining amount has to be paid half yearly installments.Small industrialists who want to buy their desired machines from National Small Industries Corporation Limited under the ‘Hire Purchase System’ have to submit their application on a prescribed application form – this ‘application form’ through that state’s ‘Director of Industries’ , Should be sent to ‘Small Industries Corporation Limited’, the state in which the factory is operating or setting up.

    A brief description of other prerequisites and rules etc. for purchasing machines under the Hire Purchase System is given below:

    1. Five copies of the application form have to be filled – out of this, the first copy, the postal order of the prescribed fee and the second and third numbers along with the application form, should be sent to the address of the Director of Industries in your area. Number of postal order etc., must be written at the place prescribed by the application form.

    Out of the remaining copies, the fourth number should be sent to the head office of National Small Industries Corporation Limited in Delhi and the fifth number should be retained by the applicant.

    2. After proper investigation, the ‘Director of Industries’ has a copy of this application with your opinion (recommendation) or recommendation with National Land Industries Corporation Ltd. K will send to the main office in Delhi as well as the other copy of this application sent to the Director of Industries, will remain in the office of ‘National Small Industries Corporation Limited’ related to its area along with its Remark.

    3. Only the applications recommended by the Director of Industries will be considered.

    4. The applicant should send the complete information of the desired machine and a copy of the ‘price sheet’ (quotation) of the manufacture-distributor, along with the complete address of the manufacturer of that machine, along with its application – this will facilitate the speed of work. .

    5. Until the full value of the machine and interest and other expenses are received by the Small Industries Corporation. Till then it will remain the property of Machine Corporation and till then every condition of ‘agreement’ will be applicable in that regard. A label, stating that the machine is the property of the Small Industries Corporation, should be kept with the machine until the total amount (including interest) has been paid.

    6. It will be necessary to insure that machine for fire, riots or nuisances – This insurance will have to be done by the recognized company of the corporation and the insurance papers will have to be handed over to the corporation – The insurance will have to be continued till the payment of the total amount.

    7. It is necessary to pay the installments at the right time. If the installment is not given, the corporation will have the right to seize the machine.

    8. Subsidiary industries (ancillary industries) are given some concessions in the rate of interest etc. – The necessary information in this regard can be obtained from the office of the Director of Industries or ‘National Small Industries Corporation Ltd.’ related to their area.

    Other Sources of Availing Machinery:

    1. State Small Industries Corporation (State Small Industries Corporation) established in various states – Details of their terms and conditions can be found from the office of the Director of Industries of the respective state.

    2. Under the State Bank of India’s ‘Instalment Credit Scheme’, small scale industrial machines can also be available on installments – full details of this scheme can be found from any Bach or Head Office of the State Bank.

    3. Facility to import foreign machines – small scale factories overseas

    Facilities for importing machines can be found on the recommendation of the Development Commissioner (Small Scale Industries).

    Those desirous of availing this facility should send their applications through the respective ‘Directors of Industries’ of that state – from here these applications along with necessary comments or recommendations should be taken to the office of Development Commissioner (Small Scale Industries) for necessary action. Are sent for.

    4. Loan may also be available for purchase of foreign machines as per the laid down terms and conditions by the Industrial Credit and Investment Corporation of India. The loan amount can be repaid in installments over a period of 7 years. Those desirous of availing this facility, along with their ‘application’, also have to give bail to a recognized financial institution.

    Availability of Raw Material for Small Scale Industries:

    Small scale industries require different types of raw materials for their products – which can be divided into two categories:

    (1) be available from indigenous sources and

    (2) to be imported from abroad.

    Many of these two types of raw materials are also such that their demand and consumption are so high that they are not able to meet all the industries according to their requirement and they get very expensive price in the open market. Therefore, it is more appropriate to get government ‘quota’ for those industries which require raw material for their products, which are often lacking in the market.

    After making this quota, the goods can be obtained at a cheaper price controlled by the government. In this regard, it is to be kept in mind that there is such a shortage of many types of raw materials that they cannot meet all the industries according to their routes or consumption in full quantity.

    Therefore, before setting up a factory related to industries for which scarce raw material is specially required, it should be ascertained whether the raw material required for it is available in sufficient quantity or not?

    Where do I get the quota of raw materials available from indigenous sources?

    What raw materials obtained from the native sources can be obtained from the womb, how?

    This information is given below respectively:

    (A) Iron & Steel:

    The distribution system has been entrusted to ‘Joint Plant Company’, 18, Sarani Ravindra, Calcutta-1. Indent, according to your actual demand and consumption for this quota, should be sent directly to the above mentioned address of ‘Joint Plant Company’ or through ‘Small Industries Corporation’ related to your state.

    To send ‘Indent’ special type of printed forms have to be used which can be found at the appropriate address of ‘Executive Secretary’, Joint Plant Committee.

    When these indent plants have been accepted by the company, then the application should be sent to the ‘Director of Industries’ related to their state that the ‘Steel Priority Commodities’ will soon be able to handle such ‘applications’. Note that the raw material related to it can be got on priority basis soon.


    It is also worth noting in the appropriate relation that priority is given in providing quota to small-scale industries, which produce goods for export.

    (A) Coal and ‘Coke’ Quota:

    Small industries get coal or coke quotas from the state’s coal controllers, but these industries do not fully meet the requirement of hard coke. So instead they can work with hard coke or (B-hive hard coke) from Sindri factory.

    (B) Copper Quotas:

    For the use of small scale industries, the womb of the Taba is given to the State Governments. Therefore, the owners of these industries should send their applications to the Director of Industries in their area for obtaining copper as per their requirement.

    (C) Chemical Substances Quota:

    For this, contact should be made with the State Trading Corporation.

    (D) Polystyrene or Polyethylene Quota:

    Its quota is given on the basis of ‘Actual User Certificate’ given by the Small Industries Service Institute. Therefore, to get more information in this regard, contact your state’s Director, Small Industry Service Institute.

    Quota of raw materials to be procured from Abroad

    Some of the raw materials used by small scale industries may also have to be sourced from abroad. For obtaining permission to import such raw materials, it is necessary to obtain an actual User License. More information in this regard can be found in detail in a government publication called ‘Import Policies’. Which can be found from shopkeepers selling government publications or ‘Kitab Mahal Janpath New Delhi’.Training Facilities for Employees of Small Scale Industries:

    How To Set Up A Small Scale Industry or Business in English

    Shortage of properly trained and ‘skilled’ employees is a major obstacle in the economic development of the country. This hurdle is more experienced in the field of small scale industries. Hence, training related facility is also available to solve this problem.In fact, the main objective of teaching or training employees of small scale industries or aspirants for (working) in small scale industries is that these people become familiar with the improved methods of production and the general knowledge required. The program for training employees has been designed in such a way that even people with different experiences can benefit from it.

    A brief information related to this training is given below:

    (1) Manager Training:

    The owners of small-scale industries or their representatives are given training in management of the industry to familiarize them with new methods of management and care and the basic principles related to various fields of commerce and production. Where there are enough small-scale factories, this training is arranged by the Small Industry Service Institute.

    There are three types of courses related to this:

    (A) Industrial Management Appreciation Course:

    The class of this course takes 2 hours in the evening and the entire course is of 10 weeks duration.

    (B) Special Course:

    This course is of 6 weeks and its class takes 2 hours in the evening.

    (C) Ad hoc course:

    Among the topics which are given information under the above mentioned course, the main topics are the following:

    (i) Office related arrangements;

    (ii) factory organization;

    (iii) Market arrangement and publicity;

    (iv) Knowledge of industrial laws;

    (v) Employee Management and

    (vi) Financial and ‘Cost Accounts’ etc.

    The main topics which are trained under the specific curriculum are the quality control, quality control, work study (production planning and control) and ‘management’ articles etc.

    (2) Workmanship Training:

    Training that can prove useful for both ‘Daksha’ (Skilled) and ‘Semi-Skilled’ artisans has also been arranged by ‘Small Industries Organization’ – under these training programs which The artisans become familiar with the modern methods of production and tools, etc., after completing them which are kept for the artisans, which consequently helps them to increase their knowledge and work efficiency.

    For detailed information about these trainings, you should contact the ‘Small Industry Service Institute’ or ‘Extension Center’ related to your area.

    Entrepreneurship Development Work:

    Lack of many elements are responsible for the establishment and successful operation of an industry such as capital, ‘right market access, right technology, supportive and motivating environment etc. but most important is the promoter-entrepreneur of that industry.

    Therefore, it is necessary to develop the quality of internal entrepreneurship by training the new entrepreneurs in such a way that they can be able to run their industry successfully. With a view to fulfill this objective, a provision has been made by the government to impart training in entrepreneurship development from time to time.

    This program is generally sponsored by institutions such as Industrial Development Bank of India, Industrial Finance Corporation of India and Industrial Credit and Investment Corporation of India. And finance is done.

    This EDP is organized by a commercial bank, Small Industries Service Institute, Chamber of Commerce or Consultancy Organization.

    EDP Under the program, the trainees are provided with classroom training providing practical and managerial insight required to establish and run the industry. In consultation with Industrial Consultants, they are oriented towards industrial Craftsmanship.

    The training program is conducted by experts who provide advice to the trainees in every process of the industry space. Apart from this, officials of various government departments and corporations of various fields, Renowned Educationist and Successful Industrialist, Commercialist, Guest Faculty (Honorary Guest) give guidance on the basis of their practical experience.

    In this way, after successfully participating in this training, the project reports are provided by experienced consultants. Follow-up and monitoring services are provided to the industry from the process of getting loan approval to running a Break-Even Point account.

    Single Window System:

    A single window system has been established in many states for Accelerated Growth. It is a useful system through which First Generation Entrepreneurs who enter the field of industry work in an accessible manner, from the selection of industries to the production stage, Information about Incentives and facilities is given.

    Along with this, arrangements are made to solve various problems of old entrepreneurs such as land, shed, and allotment of electricity, term-loan working capital loan loan etc. This system would be formed under the Directorate of Industries. is .

    Its members are deputed to other departments and bodies related to industry, such as State Financial Corporation, State Electricity Council, Commercial Tax Department, Labor Department-Commercial Bank etc. apart from the officials of the Department of Industries.

    With the formation of this system, entrepreneurs do not have to go to different places for different tasks. Rather, entrepreneurs are confronted face-to-face with the department officials solving the complex problems, and in that the effort is to solve the problems as soon as possible.

    How to set up a small scale industry? (Procedure for Setting Up a Small Scale Industry):

    1. Product Selection:

    If you have decided to set up a small scale industry, then the first thing comes, the choice of goods. Which product is produced.

    It is very important to pay attention to some important things for choosing an object, which are:

    (1) How much are the capital?

    (2) Whether raw material is available?

    (3) Selection of place to set up industry? Where laborers, water, electricity and other essential things are easily available.

    (4) Thorough inspection of technical feasibility of the industry

    (5) Estimated Profit on Total Capital Investment

    (6) Market Position

    (7) Export Position

    (8) Import Position

    Since item selection is a very important part of the industry establishment. This work requires a lot of care and thoughtfulness. But being late can also cause damage.

    Therefore, it is very useful to seek the help of Competent Consultancy Organisation for quick and accurate selection of the object. The study of the Feasibility Report prepared by them proves very beneficial in deciding the election.

    2. Incentive Facilities:

    Different types of incentive facilities are provided to them for the rapid development of small scale industries in every state. Its methods depend on the industrial policy and financial position of that state.

    Generally those features are:

    (a) Capital Subsidy

    (b) Diesel Generator Subsidy

    (c) Electricity Subsidy

    (d) Project Report Subsidy

    (e) Technical Know-How Subsidy

    (f) Interest Subsidy

    (g) Sales-Tax Relief

    (h) Interest-free loan Against Commercial Taxes in lieu of commercial tax.

    (i) Seed Money Assistance

    3. Types of Constitution:

    There are several types of organizational arrangements. Everyone has different merit-demerit. In addition to this, there are also some statutory norms within the limits related to the type of organization, which is on capital investment, quantum of loan and annual income etc. Is based. The organization is prepared keeping these things in mind.

    Following are the details of the main organizations:

    (a) Proprietorship:

    As the name is known, the owner of the entire industry is a single man. The same person invests capital and laborers. He himself is responsible for the loss of the benefits of the entire industry. He has the right to make all kinds of decisions in his industry. One drawback in this type of industry is that the owner alone has to bear the burden of every crisis, doubt.

    (b) Partnership:

    Under partnership management, two or more persons run the organization together. For this, all partnerships together form a written partnership agreement in accordance with the Indian Partnership Act 1932, in which all the terms and conditions are prepared.

    The organization is run according to the same conditions. Therefore, any type of risk in a partnership organization is not faced by one person but all the partners have to face together.

    (c) Private Limited Company:

    A private limited company has a minimum of 2 and a maximum of 50 promoters. This organization is registered under the Companies Act 1956 by the Registrar of Companies.

    A Memorandum and Articles of Association of the company is prepared in which all the scope of work is described. Accordingly, the company is operated.

    (d) Public Limited Company:

    Smriti and Vidhan Patra Pvt. Ltd. of Public Limited Company also It is prepared according to Public limited companies are also registered under the Registrar of Companies. Such companies can advertise to the general public to sell their shares whereas Pvt. Ltd. Co. Can not do this.

    (e) Co-Operative Society:

    Such organizations are registered under the Co-Operative Society Act (1935) registered with the respective state cooperative department. This organization consists of at least ten members.

    Memorandum and Articles of Association are also prepared for this type of organization. On the basis of which the work is done.


    There is a long list in the small sector which includes chemicals and electronics. Small-use items such as soaps, detergents, leather industries to microprocessors, mini computers, electronic watches, color TVs, electronic equipment, etc. fall in this area.

    Important steps are being taken to increase the production capacity of small scale industries. In order to meet the shortage of coal for easy procurement of raw materials, full attention is being given to the convenience of freight transportation. In addition, goods imported for use in the region have been self-supporting.

    Project Profiles of some important modern items produced in small scale industry are given in this book, which can benefit the readers.

    4. Availability of Project Report:

    Often new entrepreneurs, especially First Generation Entrepreneurs, are not aware of the realization of project report. For entrepreneurs, contacting the ‘Small Industry Research Institute’ 4/43 Roop Nagar, Delhi-110007, can prove beneficial and helpful.

    The above consulting institute has been working in the field of industry establishment for the last 25 years. Projects are prepared in consultation with the entrepreneurs keeping in view the overall situation suited to the needs of the entrepreneurs through this organization.

    How To Set Up A Small Scale Industry or Business in English

    There are about 15,000 ready computed project reports, which are available in various fields like – Chemical Industry, Engineering Industry, Electrical Industry,  Leather Industry, Plastic Industry, Rubber Industry, Paper Industry,Soap Industry, Detergent Industry, Cosmetic Industry, Food Processing Industry, Textile Industry, Lubricant Grease Industry, Paint Industry ( Paint Industry, Pharmaceutical Industry, Agrochemical Industry, Agro-Industry, Metallurgical Industry, Gum-Adhesive Industry and Ceramic Industry ) Are related to etc. Therefore, Prospective entrepreneurs can take project report from the above institution.

    How To Set Up A Small Scale Industry or Business in English

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