Exp.No 5 Preparation of report on ‘Information for setting up new startup’ from MCED/MSME/KVIC etc

Exp. No 5 Preparation of report on ‘Information for setting up new startup’ from MCED/MSME/KVIC etc


Information for Setting up a New Startup in India


1. Introduction

Entrepreneurship converts ideas into economic activity. In India, startups benefit from a growing ecosystem of government and non-government supports — training, seed funding, incubation, credit guarantees and scheme-specific subsidies — designed to reduce early-stage risk and increase survival/scale-up chances. This report summarizes major supports (with where to apply) and gives a practical, step-by-step guide to setting up a new startup in India.

2. Government support systems — key agencies & what they offer

2.1 Maharashtra Centre for Entrepreneurship Development (MCED)

MCED (state-level, Maharashtra) runs entrepreneurship development programmes (EDPs), skill/sector training (food safety, digital marketing, agri entrepreneurship, solar PV installer courses, etc.), short residential courses and orientation workshops aimed at preparing entrepreneurs to set up and run micro & small enterprises. These programs often include hand-holding and links to state schemes. (mced.co.in)

How MCED helps: training + certification, handholding for business plans, referrals to local banks/state schemes and awareness of state-level subsidies.

2.2 Ministry of Micro, Small & Medium Enterprises (MSME) — Central support

The Ministry of MSME documents and runs multiple schemes (credit-linked subsidies, technology upgradation, marketing support, cluster development, skill training, and more). The Ministry publishes a consolidated schemes booklet and resources for entrepreneurs (including guidance on finance, technology, and market access). MSME is also the nodal authority for Udyam (MSME) registration which unlocks many scheme benefits. (MSME)

Notable roles & supports:

  • Awareness of central schemes, training programs and cluster supports.

  • Linkages to credit schemes, procurement preferences, and technology centres.

2.3 Khadi & Village Industries Commission (KVIC) and PMEGP

KVIC implements rural/urban micro-enterprise support including the Prime Minister’s Employment Generation Programme (PMEGP) (credit-linked subsidy for micro units in non-farm sectors). PMEGP provides subsidised loans (subsidy % varies by category/location) and covers both new & expansion projects. KVIC also implements market development assistance and schemes targeted at artisans and village industries. (KVIC Online)

How KVIC helps: subsidised credit (PMEGP), market development assistance for khadi/village products, training for traditional artisans.

2.4 Startup India & Seed Fund Scheme (central startup support)

Startup India is the central portal for startup recognition, policy guidance and scheme access. The Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for proof of concept, prototype development, product trials and market entry (seed grants/loans routed via incubators/seed funds selected under the scheme). The portal additionally guides funding stages and connects startups to incubators. (seedfund.startupindia.gov.in)

How Startup India helps: recognition (for regulatory relaxations/tax benefits), access to seed funding windows, mentoring, and ease-of-doing-business resources.

2.5 National incubator networks — Atal Innovation Mission (AIM) / AICs

Atal Innovation Mission (NITI Aayog) supports a network of Atal Incubation Centres (AICs) which provide office space, mentorship, technical/business support, and sometimes seed grants or facilitated investor introductions. AICs are a strong channel for early stage mentorship and connections to other government funding programs. (Atal Innovation Mission (AIM))

3. Non-government supports

  • University/industry incubators (IIT/IIM/SINE/CIIE etc.) provide deep tech mentoring and investor access.

  • Private accelerators & VC angel networks offer mentoring, demo days and follow-on capital.

  • State startup missions & industry bodies (e.g., TiE, FICCI / CII) provide mentoring, market linkages and policy advocacy.
    (Choose incubators based on sector fit, stage, mentor network and access to investors.)

4. Step-by-step guide to setting up a new startup in India

Below is a practical process you can follow. Tick off the checklist as you progress.

Phase A — Validate idea & prepare

  1. Problem & market validation

    • Define target customer, run quick surveys/interviews, build a lean canvas.

  2. Prototype / MVP

    • Build minimum viable product or service; test with pilot customers.

  3. Prepare a short business plan

    • Market size, revenue model, basic 12–24 month runway budget and ask (if seeking funds).

Phase B — Training, mentorship & incubation

  1. Take an Entrepreneurship Development Programme (EDP)

    • Join MCED or other EDPs for practical handholding and local scheme awareness. (MCED runs frequent EDPs and sectoral training.) (mced.co.in)

  2. Apply to an incubator/accelerator (AICs, university incubators, private accelerators) for mentorship, workspace and investor introductions. AIM/AIC network is a key government route. (Atal Innovation Mission (AIM))

Phase C — Legal & compliance (core registrations)

  1. Decide the legal form — sole proprietorship / partnership / LLP / Private Limited Company.

    • For investor funding, Pvt Ltd is standard; for micro self-employment, proprietorship/LLP may suffice.

  2. Company / LLP / Proprietorship registration

    • Register company with MCA (for Pvt Ltd/LLP) or apply for GST/proprietorship registrations as applicable.

  3. Udyam (MSME) registration — free online on the Udyam portal; recommended because many schemes, credit windows and procurement preferences require/benefit from MSME registration. (Udyam Registration)

  4. Obtain GST (if turnover threshold or interstate supply), PAN, TAN, and other sector licences (FSSAI for food, Shop & Establishment / Trade license, IEC for exports, pollution/NOC if manufacturing).

  5. Intellectual Property (if applicable) — consider provisional patent, trademark registration (MSME schemes offer IP subsidies in some cases—check MSME guidance).

Phase D — Finance & funding options

  1. Bootstrap + Friends & Family — common initial route.

  2. Seed / micro grants & subsidised schemes

    • Apply for Startup India Seed Fund via recognized incubators for prototype/proof-of-concept funding. (seedfund.startupindia.gov.in)

    • For micro projects, consider PMEGP (KVIC) for credit-linked subsidy (especially for rural/village industries). (MSME)

  3. Bank loans / MUDRA / CGTMSE / SIDBI — for asset finance or working capital (credit guarantee schemes reduce collateral needs).

  4. Angel / VC / accelerating rounds — once traction exists; incubators and AIM network help with investor intros.

Phase E — Operations & scaling

  1. Set up accounting, payroll, statutory compliance (TDS, GST returns).

  2. Market & scale — leverage MSME/Startup India marketing portals, government e-marketplaces, trade fairs (MSME), and MCED linkages for state buyers/markets. (MSME)

5. Documents & eligibility — quick checklist

  • Aadhaar, PAN (proprietor/partners/directors).

  • Proof of business address (rent agreement / electricity bill).

  • Bank account (current account).

  • Basic business plan (1–2 pages) for scheme/loan applications.

  • For PMEGP: project report, KYC, and category/location proof (see KVIC guidelines). (KVIC Online)

6. How to access the schemes (where to apply)

  • MCED (Maharashtra) — training calendar & apply via MCED website (state-level courses listed with dates/fees). (mced.co.in)

  • MSME (Ministry) — consolidated schemes booklet and e-book on MSME schemes (official portal lists schemes and scheme PDFs). Use the MSME site for scheme details and for portal links (TReDS, technology centres, etc.). (MSME)

  • KVIC / PMEGP — apply via KVIC PMEGP portal (credit-linked subsidy scheme implemented through KVIC / State KVIB / DIC). (KVIC Online)

  • Startup India / Seed Fund — register on Startup India portal, seek recognition, and consult the Seed Fund portal for incubator-managed funding windows. (seedfund.startupindia.gov.in)

  • Udyam registration — official Udyam portal (udyamregistration.gov.in) — free online process. (Udyam Registration)

7. Short hypothetical case example (illustrative)

Scenario: Suyog (Pune) wants to start a dehydrated fruit snack unit (small manufacturing).

  1. Joins MCED’s “Vegetable and Fruit Dehydration” training to learn process & business aspects and to make a local network. (Apply via MCED.) (mced.co.in)

  2. Builds a small prototype line (MVP), prepares a 12-month plan.

  3. Registers as a Pvt Ltd or proprietorship and completes Udyam registration to access MSME benefits. (Udyam Registration)

  4. Applies for PMEGP (if eligible) for subsidised machinery loan via KVIC/DIC OR approaches bank with Udyam and business plan for MSME loans. (MSME)

  5. Applies to a local AIC/university incubator or Startup India-recognised incubator for mentoring and market linkage support; applies for seed support if product trials require small grant. (Atal Innovation Mission (AIM))

8. Practical tips & common pitfalls

  • Start with training & pilot sales — real customer feedback beats assumptions. (Use MCED/EDPs for structured learning.) (mced.co.in)

  • Register early (Udyam) — it’s free and opens many doors to credit & tenders. (Udyam Registration)

  • Pick the right incubator — match sector focus and mentor expertise, not just brand name. (Atal Innovation Mission (AIM))

  • Keep finances clean — formal bank accounts, invoices and basic accounting help loan access and investor trust.

  • Check scheme timelines & portal statuses — some schemes (e.g., PMEGP) have periodic portal closures/changes; follow official portals for updates. (The Times of India)

9. Conclusion

India’s startup ecosystem offers layered supports — training (MCED, state bodies), central schemes and registrations (MSME/Udyam, Startup India, Seed Fund), targeted subsidies (KVIC/PMEGP), and incubator networks (AICs and many university/industry incubators). For an aspiring entrepreneur the practical path is: validate → train → register (Udyam/company) → incubate/receive mentoring → access scheme funding or bank credit → scale. Using the official portals and incubator channels greatly improves access to funds, mentoring and market linkages.

10. Key official sources (selected)

  • MCED — Training & programmes (Maharashtra Centre for Entrepreneurship Development). (mced.co.in)

  • Ministry of MSME — Schemes booklet / e-book (central schemes & guidance). (MSME)

  • KVIC (PMEGP & village industries) — official KVIC portal & PMEGP guidelines. (KVIC Online)

  • Startup India / Seed Fund Scheme — official Startup India & Seed Fund portal. (seedfund.startupindia.gov.in)

  • Atal Innovation Mission — Atal Incubation Centres network (AIM / NITI Aayog). (Atal Innovation Mission (AIM))


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