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.