Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly important, as it enables these enterprises in availing benefits from various government initiated schemes. MSMEs are classified in two categories, such as manufacturing and service enterprises.
Benefits of MSME Registration
MSME registration helps in getting government tenders
Under bank loan, 15% import subsidy on fully automatic machinery
Becomes easy to get licenses, approvals and registrations, irrespective of field of business
Compensation of ISO certificate expenditure
Helps in getting low interest rates
Registered MSMEs gets tariff subsidies and tax and capital subsidies
The classification of MSME for both goods and services organisation is done on the basis of the turnover and is as follows:-
Upto Rs. 5 Crores & Investment Upto Rs 1 Crores.
Rs. 5 Crores to Rs. 50 Crores & Investment Upto Rs 10 Crores.
Rs. 50 Crores to Rs. 100 Crores & Investment Upto Rs 20 Crores
KEY ANNOUNCEMENTS OF ATMA-NIRBHAR BHARAT ABHIYAAN
Rs 3 lakh crore collateral free automatic loans for MSMEs
Rs 50,000 crore equity infusion through MSME Fund of Funds
Rs 20 crore subordinate debt for MSMEs