Description
MSME Registration In India (Eligibility, Registration Process, Benefits, Schemes, Documents Required)
“MSME” (Udyog Aadhaar) stands for Micro, Small, and Medium Enterprises. MSME is a success in our country’s economy. The provisions of MSME came to existence in accordance with Micro, Small and Medium Enterprises Development (MSMED), 2006.
What is MSME (Micro, Small, and Medium Enterprises) ?
MSME which is also known as the Udhyog Aadhar is a registration process that helps businesses to grow and scale in this competitive time. It is a unique 12 digit identification number which helps businesses by providing them Subsidies Exemption or Relaxation. However, there are certain criteria and the business should fall below that particular threshold to be eligible for MSME registration.
It is classified into two sectors –
- Manufacturing Enterprises
- Service Enterprises
Manufacturing Sector: Any company engaging in manufacturing or production of goods as specified under the First Schedule to the Industries (Development and Regulation) Act, 1951 or installing machinery in the process of value addition to the final product having a distinct name or character or use.
Service Sector: Any enterprise engaging in providing service.
| Existing MSME Classification |
| Criteria: Investment in Plant & Machinery or Equipment |
| TYPE | MICRO | SMALL | MEDIUM |
| Manufacturing Enterprises | Investment < Rs. 25 Lakh | Investment < Rs. 5 Crore | Investment < Rs. 10 Crore |
| Service Enterprises | Investment < Rs. 10 Lakh | Investment < Rs. 2 Crore | Investment < Rs. 5 Crore |
| Revised MSME Classification |
| Composite Criteria: Investment & Annual Turnover |
| TYPE | MICRO | SMALL | MEDIUM |
|---|---|---|---|
| Manufacturing Enterprises & Service Enterprises |
Investment < Rs. 1 Crore and Turnover < Rs. 5 Crore | Investment < Rs. 10 Crore and Turnover < Rs. 50 Crore | Investment < Rs. 20 Crore and Turnover < Rs. 100 Crore |
Benefits of MSME Registration
Here is a list of few benefits that you can enjoy with MSME Registration
- In the MSME registration, the BANK and NBFC loans available at the very lower interest rate or get a subsidy on loan.
- There are multiple tax rebates offered to MSME.
- It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- Special consideration on International Trade fairs
- Relaxation in Trademark Government Fees
- Subsidy in Bar Code registration.
- Concession in electricity bills.
- There are multiple contracts and govt. of India tenders are given to MSME Industries.
- Easy access to credits from banks and nbfc.
- Cost Rebates and concessions are available only for the patent registered by the msme industries.
- Business / Organization registered in MSME is to provide priority for govt. certification and licence.
- There is a One Time Settlement Fee for non-paid amounts of MSME.
- Easy loan in 59 minutes.
Document Required for MSME Registration Certificate?
- Aadhaar Number (Individual / Partner / Director) – Mandatory
- PAN Number (Proprietor / Firm / Company/ Society)
- Business Address Proof
- Bank Detail (Account Number, IFSC Code)
- The basic business activity NIC Codes.
- Total Investment value in lakh.
Schemes of MSME in India?
- Udyog Aadhaar memorandum
- Zero Defect Zero Effect
- Quality Management Standards & Quality technology Tools
- Grievance Monitoring System
- Incubation
- Credit Linked Capital Subsidy Scheme
- Women Entrepreneurship
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Benefits of MSME Registration