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Business Set-Up

Starting a business is an exciting journey, and at Akshay Sane & Associates, we simplify this process with end-to-end support for your business set-up needs. Whether you’re a startup founder or an experienced entrepreneur looking to expand, our services are tailored to guide you through the legal, regulatory, and strategic requirements of setting up your business in India.

Classification of Enterprises

As per the MSME guidelines, enterprises are classified based on their investment in plant and machinery or equipment and their turnover:

 Investment does not exceed ₹2.5 crore and turnover does not exceed ₹10 crore.

 Investment does not exceed ₹25 crore and turnover does not exceed ₹100 crore.

 Investment does not exceed ₹125 crore and turnover does not exceed ₹500 crore.

We help you identify your category correctly and register your enterprise under the appropriate classification to avail of government benefits.

How Investment is Calculated

  • The calculation of investment in plant, machinery, or equipment is linked to the Income Tax Return (ITR) filed under the Income Tax Act, 1961. 
  • For new businesses with no prior ITR, the investment is considered based on self-declaration by the promoter. 
  • Investment includes all tangible assets (except land, building, furniture, and fittings), whether purchased first-hand or second-hand. 
  • GST is excluded from the purchase value. 
  • Certain items (as per Section 7 of the MSME Act) are excluded from this calculation.

Turnover Calculation Guidelines

  • Export turnover (goods or services) is excluded from total turnover when determining classification. 
  • Turnover data must align with records from the Income Tax Act and CGST Act. 
  • For firms without a PAN, turnover can be declared based on self-declaration up to 31st March 2021. Post this, PAN and GSTIN are mandatory. 

IEC (Importer Exporter Code) Registration

The Importer-Exporter Code (IEC) is mandatory for any business intending to export or import goods or services. It serves as a unique identification number granted by the Director General of Foreign Trade (DGFT).

Key Points:

  • No person can import or export without an IEC.
  • IEC is only required for export/import of services when the provider avails benefits under the Foreign Trade Policy or deals with restricted services or technologies.
  • IEC applies to entities including:
     Proprietorship, Partnership, LLP, Private Limited Company, Trust, HUF, and Society.
  • Post GST implementation, the IEC number is the same as the PAN of the business, but is separately issued by DGFT.

Why Choose Akshay Sane & Associates?

  • Personalized consultation for identifying suitable business structures
  • Assistance with all government registrations including MSME, GST, IEC, UDYAM, and more
  • Guidance on capital structuring and tax-efficient planning
  • Quick documentation process and professional support from start to finish