Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

How to Open Small Business in India

How to Open Small Business in India

Small businesses are the backbone of the Indian Economy. As per the MSME report, there are over 36 million small businesses in India providing employment to over 80 million persons. Small businesses contribute over 8% to the GDP and account for 45% of the total manufacturing output and 40% of the export from India. The Government of India recognizes the tremendous contribution made by small businesses and support them through a number of subsidy schemes and initiatives. In this article, we look at how to open small business in India.

Small Business Ideas

A small business can be started as a service or manufacturing unit. As per Ministry of Micro, Small and Medium Enterprises, any service sector unit with an investment in equipment of not more than Rs.2 crores is classified as a small business. In the manufacturing sector, any unit with an investment in plant and machinery of less than Rs.5 crores is classified as a small business. Going by the above definition, there are various businesses that can be started as a small business. Click here to view small business ideas that are home based.

While choosing a small business idea to implement, the Entrepreneur must keep the following key areas into consideration:

  • Market Opportunity
  • Investment Requirement
  • Entrepreneur’s Experience
  • Business Objective
  • Raw Material Requirement
  • Staffing Requirement
  • Business Entity
  • Business Licenses Required
  • Taxation
  • Break-even Point
  • Financial Projections

Business Entity

Most small businesses in India are started as a proprietorship or partnership firm due to ease of compliance. However, to afford limited liability protection and creation of a registered entity, the Government of India introduced Limited Liability Partnerships in India in 2008 through the Limited Limited Partnership Act, 2008. Therefore, those small businesses that would have an annual turnover of more than Rs.10 lakhs in a year can start a LLP to enjoy additional benefits like limited liability protection, easy access to bank finance, easy business transferability, etc.,

Limited Liability Partnerships also do not require an audit if the annual sales turnover is less than Rs.40 lakhs and the capital capital contribution is less than Rs.25 lakhs, making it an ideal entity for small businesses with lesser compliance requirements. In case the small business has significant investment in equipment or machinery likely to exceed Rs.25 lakhs or if the business would have an annual sales turnover in excess of Rs.40 lakhs, then a private limited company can be registered.

How to Open Small Business in India



At CAKART you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visit and chat with our counsellors any time. We are happy to help you make successful in your exams.

Click here to download FREE CA CS CMA books.

Leave a comment

Your email address will not be published. Required fields are marked *