Micro, Small & Medium Enterprises
MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. MSME registration or SSI registration online helps businesses avail multiple government subsidies and benefits MSMED act, MSME gov.
Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI/Small Scale Industry Registration under the MSMED act,
Following are the conditions which need to be fulfilled to qualify under MSME Act.
- All the manufacturing enterprises which have invested less than 10 crores in machinery and plant are allowed to be registered as MSME.
- In service enterprises, the investment in plant and machinery should not be more than 5 crores.
- And in near future, if your enterprise exceeds the maximum limit, then it will not sum up as MSME.
Different Types of MSMEs ?
| Manufacturing Sector | |
|---|---|
| Enterprises | For 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 | For 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 |
Benefits of MSME / SSI Registration
- Cheaper bank loans: The rate of interest on loan offered to MSMEs is 1-1.5% lower compared to typical business loan interest.
- Easy access to credit: PM Modi has introduced the Mudhra Loan scheme, which provides loans to MSME / SSI without collaterals.
- Approvals: Quicker approvals from state and central government bodies: Business registered under MSME are given higher preference in terms of government license and certification.
- Tax rebates: MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
- Cheaper Infrastructure: Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
- Access to Tenders: There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.