Micro-Small & Medium Enterprises (MSMEs) contribute widely to the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small and Medium Enterprises and are required to be registered to avail profits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is very important, as it enables these enterprises in availing profits from various government launched schemes. MSMEs are categorized into two sections, such as manufacturing and service enterprises.
Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government changed the MSME classification* by including composite rules of both investment and annual turnover. Also, the differentiation between the manufacturing and the services sectors under the MSME definition has been removed. This removal will create a similarity between the sectors. The following is the updated MSME classification*, where the investment and seasonal turnover, both are to be considered for deciding an MSME.
MSME – Merged Criteria: Investment and Annual Turnover
Micro Enterprises - Manufacturing & Services sector both Investment less than Rs. 1 crore, Turnover less than Rs. 5 crore
Small Enterprises - Manufacturing & Services sector both Investment less than Rs. 10 crores, Turnover up to Rs. 50 crores
Medium Enterprise - Manufacturing & Services sector both Investment less than Rs. 50 crores, Turnover up to Rs. 250 crores
Documents Required:
⦁ Aadhar card
⦁ Rent Agreement
⦁ Property Paper
⦁ Cancelled cheque
⦁ Company Registration i.e., Sale or Purchase Bill and PAN card
Business Address Proof
To self-owned premise - Possession letter, allotment letter, lease deed, property tax receipt.
To Rent owned premise - Rent receipts, utility bills, or document evidencing the landlord's ownership, NOC from the landlord.
Benefits of MSME Registration
⦁ MSME registration benefits for getting government tenders
⦁ Under bank loan, 15% import payment on fully automatic machinery
⦁ Protection against Delayed Installments
⦁ Concession on Electricity
⦁ Gets exemption under Direct Tax Laws
List of details to be provided for MSME Registration on the application form
⦁ Name of Entrepreneur as per Aadhaar card
⦁ Aadhar number
⦁ PAN Card
⦁ Gender
⦁ Category (General, OBC, SC/ST)
⦁ Office Address
⦁ Mobile Number, Email ID
⦁ Date of Commencement of Business
⦁ Bank account number and IFSC code
⦁ Nature of Business
⦁ Number of Employees
⦁ Physically Handicapped
⦁ Organization type (Proprietorship, PVT. LTD. Company, Limited Liability Partnership, Partnership firm, Society or trust, etc.)
⦁ Name of Enterprise
⦁ Location/Address of the organization
⦁ Investment Amount in organization and Machinery
⦁ NIC 2 Digit Code – choose the primary activity
⦁ Additional detail of the enterprise
Some MSME Schemes launched by the government
Udyog Aadhaar memorandum: Aadhaar card is a 12 digit number given to all single persons by the government. In MSME, the Aadhaar card is a mandatory requirement. The profit of enrolling in this scheme is ease in availing credit, loans, & subsidies from the government. The registration you can be done both ways in the online mode or offline mode.
Women Entrepreneurship: Women entrepreneurs are at a missing figure, with only 14% of all organizers being women. To develop and cater to the potential of women organizers, many schemes provide benefits and skill-training to young women who desire to take up entrepreneurship and MSMEs as an option.
Grievance Monitoring System: This scheme is started to control and cater to all sorts of complaints and suggestions by business and MSME owners. It proposes to make the method of grievance handling transparent and fast.
Incubation: This scheme helps innovators with the implementation of their innovative designs, ideas, or products. Under this from 75% to 80% of the project price can be funded by the government.
Zero Defect Zero Effect Scheme: In this Zero Defect Zero Effect scheme are also called (ZED)scheme in the manufacturing industry. That means to manufacture goods that have zero defect, hence better quality products.
Credit Linked Capital Subsidy scheme: Under this scheme, new technology is implemented for the business owners to substitute their old and old-fashioned technology.
Quality Management Standards and Quality Technology Tools: This scheme aims that if you registering in this scheme, then it will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology.
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