Meaning
Micro, Small or Medium Enterprise registration (Known as MSME Registration or Udyog Aadhar) is the process whereby any person or entity can get it self registered as Micro, Small or Medium enterprise, depending upon the nature of criteria in which they are falling. Entities falling under MSME are small businessess that play very crucial role in the growth of Indian Economy and Employment generation. The Government of India has recognised MSME as an important sector and implanted various scheme and policies for its growth. MSME Registration is not mandatory as per the law of land however, it offer various advantages to the MSME such as access to government scheme, subsidies or upper hand in Government tenders.
Criteria under MSME:
a. Micro Enterprises: Investment in plant and machinery or equipment - up to Rs. 1 crore and Annual Turnover of not more than Rs. 5 crore;
b. Small enterprises: Investment in plant and machinery or equipment - up to Rs. 10 crore and Annual Turnover of not more than Rs. 50 crore;
c. Medium Enterprises: Investment in plant and machinery or equipment - up to Rs. 50 crore and Annual Turnover of not more than Rs. 250 crore;
Key Features
1. Access to government schemes: MSMEs Entities are eligible for several government schemes, like Credit Guarantee Schemes, subsidy programs, and other financial assistance programs.
2. Uppar Hand in Government Tenders: MSMEs Entities get upper hand in government tenders;
3. Lower interest rates: MSMEs Entities get loan at lower interest rate as compare to other Non-MSME Entities.
4. Reduced rates for patents and trademarks: MSMEs Entities are eligible for reduced rates for filing and renewing patents and trademarks which helps to protect their Identity;
5. Business promotion and marketing support: Government of India provide several intiative and benefits from time to time to boost MSME industries.
6. Collateral-free loans: MSMEs Entities get collateral-free loans up to a certain amount, which can help them to meet their working capital requirement for business growth.
7. Tax benefits: MSMEs Entities can avail several tax benefits, such as exemption from certain taxes, reduced tax rates, and other tax-related benefits.
What is included in this
1. Preparation of documents;
2. MSME License;
3. Laisioning with Department;
4. 24/7 help to assist you;
5. Support in availing MSME benefits;
6. Time to time update on benefits in MSME Industries;
FAQ
1. What do you mean by “Udyog Aadhaar”/ MSME?
An MSME is Micro, Small or Medium Enterprise. The registration of the same is carried out on the same basis of classification of an enterprises as an MSME depend upon its size and revenue.
2. What is the benefit of MSME?
The Government of India has extended various benefits under MSME Registration scheme such as, loan at lower rate of interest, preference in government tenders, reduction in IPR Fee, tax incentives, and training and development programs etc.
3. Aadhaar is mandatory requirement for MSME?
Yes, Aadhaar is a mandatory requirement. However, in certain circumstances applicant can also apply without Aadhaar.
4. What are the classifications under MSME?
Registration under MSME is classified in below manner:
a. Micro Enterprises: Investment in plant and machinery or equipment - up to Rs. 1 crore and Annual Turnover of not more than Rs. 5 crore;
b. Small Enterprises: Investment in plant and machinery or equipment - up to Rs. 10 crore and Annual Turnover of not more than Rs. 50 crore;
c. Medium Enterprises: Investment in plant and machinery or equipment - up to Rs. 50 crore and Annual Turnover of not more than Rs. 250 crore;