MSME REGISTRATION

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Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly important, as it enables these enterprises in availing benefits from various government initiated schemes. MSMEs are classified in two categories, such as manufacturing and service enterprises.

Benefits of MSME Registration

• MSME registration helps in getting government tenders

• Under bank loan, 15% import subsidy on fully automatic machinery

• Becomes easy to get licenses, approvals and registrations, irrespective of field of business

• Compensation of ISO certificate expenditure

• Helps in getting low interest rates

• Registered MSMEs gets tariff subsidies and tax and capital subsidies

The classification of MSME for both goods and services organisation is done on the basis of the turnover and is as follows:-

Classification

Turnover

Micro Enterprise

Upto Rs. 5 Crores & Investment Upto Rs 1 Crores.                                                                   

Small Enterprise

Rs. 5 Crores to Rs. 50 Crores & Investment Upto Rs 10 Crores.                                                   

Medium Enterprise

Rs. 50 Crores to Rs. 100 Crores & Investment Upto Rs 20 Crores

 

KEY ANNOUNCEMENTS OF ATMA-NIRBHAR BHARAT ABHIYAAN

 

• Rs 3 lakh crore collateral free automatic loans for MSMEs

• Rs 50,000 crore equity infusion through MSME Fund of Funds

• Rs 20 crore subordinate debt for MSMEs