In order to function lawfully, the businesses should have their compliance and regulatory in place, said Rajesh Kumar, Director of India's one of the leading compliance services providers, Brand Liaison, reports PTI.
While analysing the compliances and regulations in the Small and Medium Enterprise (SME) sector at a seminar, Rajesh said that there is an immediate need for the government to come up with strong compliance and regulatory policies for the SME sector. He also said that there is a lack of awareness amongst people and the government should initiate awareness drive.
Prior to initiating a business in the SME segment, one should know the appropriate regulations of the industry and should not ignore them. Compliances help the businesses flourish by making them transparent and lucrative to the investors," Rajesh Kumar explained.
“SME sector primarily comprises low investment business, where the proprietors feel that further investment in regulations and compliances is a waste. Hence, due to thin budgets, they restrict themselves from taking one, which should not be the case. They must understand that compliance and approvals are mandatory and they must go for them. Proper compliance and regulatory measures help reduce NPAs,'' he added.
As per an estimate, there are approx. 42.50 million SMEs in India, both registered and unregistered, producing more than 6000 products. This comprises a staggering 95 percent of the total industrial units in India.
It is also estimated that these enterprises together have about 106 million employees which contribute to 40 percent of India's workforce, next only to the agriculture sector. The SMEs also play an important part in the Indian economy. It is estimated that around 16 percent of total bank lending goes to the SME sector. The SME sector in India has managed an average growth rate of around 10 percent in the last four years.
Incorporated in the year 2014, Brand Liaison is a renowned Indian representation company for foreign manufacturers for compliance and approvals in Indian market. It represents many multi-national brands from countries like China, Hong Kong, South Korea, Taiwan, USA, Germany, Japan, the UK, Malaysia, Singapore, Vietnam, Indonesia, and many others. It is a leading organisation providing a wide range of compliance services that include BIS Registration, WPC license, BEE certification, TEC registration, EPR registration, ISI certification, and Brand representation in India at a high scale.