What is MSME ?
MSME definition is Micro, Small and Medium Enterprise, which was introduced in agreement with the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 by the Government of India. MSMEs are critical contributors to the country’s socio-economic development. The role of msme in indian economy is important, as the MSMEs are key contributors to the socio-economic development of the country. The initiative of MSME started functioning in 2006 to create a competitive environment and encourage small businesses to ensure speedy development and boost the economy.
Micro
Enterprises having an investment of less than Rs. 1 Crore and turnover of less than Rs. 5 Crores will be eligible to be called a micro enterprise.
Small
Enterprises having an investment of less than Rs. 10 Crore and turnover of less than Rs. 50 Crores will be eligible to be called a small enterprise.
Medium
Enterprises having an investment of less than Rs. 20 Crore and turnover of less than Rs. 100 Crores will be eligible to be called a small enterprise.
There are various benefits of the MSME registration :-
- Businesses who have got the registration done they can get a loan at a lower interest rate.
- You can get business loans at a lower interest rate if you got your business registered under MSME.
- You can avail tax benefits under MSME Act.
- MAT or minimum alternate tax can be extended to 15 years from the regular 10 years.
- MSME registered enterprises get preference for government-issued licenses and certificates.
- You can enjoy concessions and rebates on the cost of patenting and industry set-up.
- Many government tenders are given to only MSME registered enterprises.
- An MSME gets easy access to credit.
You require the following documents to avail the benefits of MSME Registration:-
- Aadhar card.
- Mobile number, Email ID
- Rent agreement.
- Cancelled cheque.
- Partnership deed (for partnership firms).
- Memorandum of Association (for companies).
- Articles of Association (for companies).
- PAN Card.
- General, SC, ST or OBC form (if any).
- Business address proof: Self-own property: allotment letter, property tax slip, possession letter. In case of Rented property: rent receipts and NOC from the property owner.
- Company registration proof: Photocopy of sale bill and photocopy of purchase bill (of raw material).
- License and purchase bills for machinery: Photocopy of an industrial license and bills of purchasing machinery and installations.