What is MSME Registration?
Micro, Small and Medium Enterprises/Small Scale Industries, or MSME/SSI enterprises are the backbone of a nation’s economy. It is the engine of economic growth, promoting equitable development for all. To support and promote MSME/SSIs, the Government of India has implemented the availability of various subsidies, schemes and incentives to promote them through the MSMED Act, 2006. Although it is not mandatory legally to register such enterprises, but to avail the subsidies and schemes, MSME/SSIs should be registered. The benefits are availed from Central or State Government and the Banking Sector.
Micro Enterprises: These are the smallest entities. The investment in these entities should be less than INR 25 lakhs in plant and machinery. In the case of micro service enterprises, the investment should not exceed INR 10 lakhs.
Small Enterprises: These are those entities in which the investment should be in between INR 25 lakhs and INR 5 crores in plant and machinery. In the case of small service enterprises, the investment should be in between INR 10 lakhs and INR 2 crores.
Medium Enterprises: These are those entities with investment between INR 5 crores and INR 10 crores in plant and machinery. In the case of medium service enterprises, the investment should be in between INR 2 crores and INR 5 crores.
Why MSME/SSI Registration?
- Cheaper bank loans
- Access to tenders
- Easy access to credit
- Quicker approval from state and central government bodies
- Tax rebates
- Electricity and VAT exemptions
- Partnership Deed/Memorandum of Association and Articles of Association
- Copy of licenses and bills of machinery purchased
Did You Know?
Micro Enterprises
Micro enterprises are the smallest entities, of course. Micro manufacturing enterprises have investment of less than INR25 lakh in plant and machinery, while micro service enterprises have less than INR10 lakh invested.
Small Enterprises
Small manufacturing enterprises may have between INR25 lakh and INR5 crore invested in plant and machinery, while small
service enterprises may have between INR10 lakh and INR2 crore invested.
Medium Enterprises
Medium manufacturing enterprises may have between INR5 crore and INR10 crore invested in plant and machinery, while
small service enterprises may have between INR2 crore and INR5 crore invested.
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