MSME stands for micro or medium enterprises. MSME is known as the backbone of the economy for the developing country like India.
MSME is a registration which was paid when it was newly introduced in India but now it is free registration and as the businesses are the backbone of economy so as the result every business need to registered under the MSME
What is MSME (micro small and medium enterprises)?
There are few changes were happened since this scheme has introduced and of that is the MSME classification is based on the criteria of the investment in plant and machinery. That is why if any business wants to enjoy the benefits of MSME then the MSMEs have to limit their investments till the lowest limit, Existing MSME classification as followed.
Manufacturing sector: –
• Micro = <Rs.25lakh
• Small = <Rs. 5crore
• Medium = <Rs. 10crore
Services sector: –
• Micro = <Rs.10lakh
• Small = <Rs.2crore
• Medium = <Rs.5crore
do kill the urge to grown more as the owner can’t scale their business. And then they owners will be expand their business and continue to avail MSME benefits.
And after the revision of the MSME classification under (Aatmanirbhar bharat abhiyan) .
Process to do MSME registration
To register yourself under MSME you have to registration on the portal (udyamregistration.gov.in) and these are the following two categories in which the registration of MSME can be done.
• For the entrepreneurs who haven’t registered their self under MSME till now.
• For those entrepreneurs who have registered their self as EM-II or UMA
For the entrepreneurs who haven’t registered under MSME
New entrepreneurs have to click on the tab “for new entrepreneurs” and there are two things which is needed to have while registration which is PAN card and AADHAR card.
For those entrepreneurs who have registered their self as EM-II or UMA
For the registered one they have to file they also have same things so that while doing the process they can enter the OTP on AADHAR no. or mobile no.
MSME registration’s benefit
- The biggest benefit is after having MSME registration the bank loan is becomes much cheaper than the regular interest rate of bank loan, it is often be around the 1 to 1.5%.
- After having MSME registration getting the government tenders is become easier as the portal of MSME is integrated with the government e-marketplace which helps to have easy access to the market place and e-tender.
- There are the one time settlement fees for non-paid amounts of MSME.
- It also allow the credit for minimum alternate tax to be carry forward for the 15 years.