MSME Registration
What are Micro, Small & Medium Enterprises ?
Definitions of Micro, Small & Medium Enterprises 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-he 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.. Manufacturing Sector Enterprises Investment in plant & machinery Micro Enterprises Does not exceed twenty five lakh rupees Small Enterprises More than twenty five lakh rupees but does not exceed five crore rupees Medium Enterprises More than five crore rupees but does not exceed ten crore rupees Service Sector Enterprises Investment in equipments Micro Enterprises Does not exceed ten lakh rupees: Small Enterprises More than ten lakh rupees but does not exceed two crore rupees Medium Enterprises More than two crore rupees but does not exceed five crore rupees
Why MSME REGISTRATION
1. Encourage entrepreneurship: through the adequate flow of credit from financial institutions and banks. All banks and financial institutions recognize MSME and provide schemes for their commercialization. 2. Support for technological upgradation, infrastructure facilities 3. Employment opportunities: skill upgradation, capacity building, and training facilities. 4. Livelihood opportunities: the welfare of artisans and workers 5. Support for product development and access to the domestic and international market.
Why to Register?
The enterprises which are registered under the scheme are eligible for certain benefits provided by the government. These are:
1. Preferential Credit (priority sector lending), differential rates of interest, etc.
2. Excise Exemption Scheme
3. Exemption under Direct Tax Laws
4. Statutory support such as reservation and Interest on Delayed Payments Act
5. Development of specialized industrial estates
6. Power tariff subsidies, capital investment subsidies and other support
How helpful are Banks?
Rate of Interests are lower for the registered ones as compared to other enterprises.Public sector banks are permitted to categorize their MSME general banking branches as specialized MSME brancheshaving 60% or more of their advances to MSME sector. This is to provide for a better service to this sector as a whole.
Documents Required for MSME Registration
Process Involved
Step 1
Documentation
Step 2
Application
Step 3
Client Confirmation
Step 4
Certificate
Step 5
Submission of Documents
Step 6
Registration Certificate
