BUILD ON AMBITION - DELEVERING ON BELIEF
Overview
MSME stands for “Micro, Small and Medium Enterprises”. The Government of India has introduced MSME or Micro, Small, and Medium Enterprises in harmony with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. These enterprises are primarily engaged in the production, manufacturing, processing, or preservation of goods and commodities.
The new criterion is based on the Investment Amount and Turnover of the enterprise.
(i) A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and turnover does not exceed ₹5 crore;
(ii) A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹10 crore and turnover does not exceed ₹50 crore; and
(iii) A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹50 crore and turnover does not exceed ₹250 crore.
Benefits of MSME
Lower Interest Rates
MSME are eligible for financing from banks under term loans and overdraft schemes at a subsidised rate under Central Government schemes.
Preference in Government Tenders
MSME are given in preference in Government Tenders for supply of goods and services. Even, relaxation in tender fees is also available for MSME.
Discount on trademark & patent fees
Under the current laws, MSMEs registered with the MSME ministry stand to benefit from a 50% subsidy on their patent registration fees.
Protection against Payments
The Supreme Court has mandated that any buyer of goods or services from registered MSMEs is required to make the payment on or before the agreed date of payment or within 15 days from the day they had accepted the goods or services. If the buyer delays the payment for more than 45 days after accepting the products or services then the buyer has to pay interest on the amount that was agreed to be paid.
Required Documents
Aadhar Card
PAN Card
Type of organization- Manufacturing or Service Provider
Mobile No. and Email Id
Address Proof of Premises
Date of commencement of Business
Cancelled Cheque
Number of employees
Value of Investment in Plant & Machinery
NIC Code
Frequently Asked Question
Any manufacturing enterprise in which the original value of investment in plant and machinery is upto Rs. 25 lakh and any service enterprises in which the original value of investment in equipment is upto Rs. 10 lakh is called a Micro Enterprise.
Any manufacturing enterprise in which the original value of investment in plant & machinery is above Rs. 25 lakh and upto Rs. 500 lakh and any service enterprise in which the original value of investment in equipment’s is above Rs. 10 lakh and upto Rs. 200 lakh is called a Small Enterprise.
Any manufacturing enterprise in which the original value of investment in plant & machinery is above Rs. 500 lakh and upto Rs. 1000 lakh and any service enterprise in which the original value of investment in equipments is above Rs. 200
lakh and upto Rs. 500 lakh is called a Small Enterprise.
No, MSME registration is not mandatory in India.
The validity of MSME certificate is for 5 years.