Micro, Small and Medium Enterprises (MSME)
What are Micro, Small & Medium Enterprises?
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.
Definitions of Micro, Small & Medium Enterprises (MSME)
In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
1. Manufacturing Enterprises-The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.
2. Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
Criteria for classification of micro, small and medium enterprises
- A micro enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
- A small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;
- A medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Benefits of MSME Registration:
- Collateral Free loans from banks
- Reservation policies to manufacturing / production sector
- Very easy to get Licenses, approvals and registrations
- Special consideration on international trade fairs
- Octroi benefits
- Waiver of Stamp Duty and Registration Fees
- Exemption under Direct Tax Laws
- Enterprises that have MSME Registration can avail Bar Code Registration subsidy as mentioned in the scheme
- Enterprises that have MSME Registration can avail Subsidy on NSIC Performance and Credit ratings as mentioned in the scheme
- Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy (IPS) as mentioned in the scheme
- Protection against delay in payment
- Reduction in rate of Interest from banks
- 15% Credit Linked CGSTI Subsidy Scheme (CLCSS) subsidy
- Waiver in Security Deposit in Government
- Concession in electricity bills
- Enterprises that have MSME Registration Certificate can reimburse ISO Certificate Expenses by making application to respective authority along with MSME
- Excise Exemption Scheme
- Preference in procuring Government Tenders
- 15% weightage in price Preference
- 1% exemption on interest rate on OD (Overdraft facility in bank)
- 50% subsidy for patent registration
Registration Process:
- To do the registration the small and medium scale industry owner has to fill a single form which he can do online as well as offline.
- If a person wants to do registration for more than one industry then also he/she can do individual registration.
- To do the registration he/she has to fill a single form which is available at the website which is listed below.
- The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details and some common information.
- In this, the person can provide self-certified certificates.
- There are no registration fees required for this process.
- Once the detail-filled and upload you would be getting the registration number.
Download
- Free Online MSME Registration Guideline,
- Application Form for off-line Registration
- Sample Certificate
- MSME Act, 2006
- MSME FAQ (Frequently Asked Questions)
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