Benefits of Business Subsidy Planning
Topic's Covered Under Business Subsidy Planning
Why Miss Business Subsidy Planning?
Type of Subsidy
Subsidy Planning Phase
More than 90% Businessman has not planned for subsidy at the time of starting their business. They planned for Land, Building, Plant & Machinery, Bank Loan, Raw Material, Marketing and Sales, Own Fund Requirement, Labor etc. but not make proper planning for Business Subsidy.
The Main reason for not planning the Business Subsidy is wrong myths pertained by majority of businessman.
We have observed that most of businessman pertaining the wrong myths for subsidy due to following reasons: 👉 Read more…
Being a Businessman, before going to start Subsidy Planning you need to understand the basic concept of Types of Subsidies.
For your better understanding, we can classify the subsidy in following ways:
Linked Based Subsidy:
Subsidies which are linked with Bank Loan are known as Credit Linked Subsidy. In simple meaning, you need to take Bank Loan for availing the benefits of this type of Subsidy.
For Example, Capital Subsidies under NABARD/PMEGP Scheme/CLCSS etc. are the Credit Linked Subsidy. Without Bank Loan, you cannot take the benefits of these subsidies.
Interest Subsidy is also the example of Linked Base Subsidy. 👉 Read more…
Let’s know the next step of Subsidy Planning i.e Subsidy Factors. There are various factors which determined the subsidy amount and eligibility. In the absence of knowledge of Subsidy factors, we cannot make better subsidy planning.
Factors which determine Subsidy:
It is a very basic factor that has impact on subsidy amount. What the business Model you are going to opt such as Proprietorship Firm, A Partnership Firm or an LLP or A Private Limited Company or Farmer Producer Organization or Women Led Business Unit etc.
Shall be have impact on subsidy eligibility and quantum of subsidy amount. 👉 Read more…
Timing of execution of a project and different stages of a project has also had a big impact on Right Subsidy Planning. We cannot line up the subsidy in a single time movement. We have to understand the right timing for maximize the subsidy benefits.
We have observed since last 14 years of experience in the Business Subsidy Segment that most of business unit just dropped the subject of subsidy after commencement of business.
They forget it after the receiving of Capital Subsidy. 👉 Read more...
Till now, we have discussed the Importance of Subsidy Planning, Type of Subsidy, Parameters of Subsidy and Planning Phase of Subsidy.
Now the turn on “Subsidy Documentation”.
Not having proper documentation is a major cause of subsidy rejection. Since the budget of Govts has limited but the Claiming Amount of Subsidy has exceeded from such budget limit.
In that situation, most of application has been rejected due to not having proper documentation. 👉 Read more…