What is MSME?
The Micro Small & Medium Enterprises Development Act 2006 makes it mandatory for MSME to register themselves with the government of India to obtain Udyog Aadhar for availing benefits provided under the MSME Development Act.
The Government of India has enacted the Micro, Small and Medium Enterprises (MSME) on June 16, 2006. This institution is mainly working for the middle class lower class business and services providing people for helping them to establish, and grow their businesses.
MSME is the backbone of the modern Indian economy, and it is considered as the growth engine for the equitable and sustainable economic development of the country. To promote the growth of Micro small & medium enterprises the government of India has timely introduced different types of schemes and sponsorships.
The major advantage of this sector is its employment potential at low capital cost. The low intensity of the MSME sector is much higher than that of the larger enterprises.
Some of the Industry Comes under MSME
- Chemical and Pharmaceutical(Medicines)
- Agricultural input (seeds, fertilizer etc.)
- Sports product
- Food Processing product
- Hotel, Restaurant
In MSME The enterprises have been broadly classified into two categories–
Who is Eligible to Enroll with MSME?
An Establishment that goes manufacturing and services with an investment of 1 Lakh and above are eligible to enroll with MSME.
Under MSME all kinds of enterprises can obtain registration like manufacturer and services providers are eligible for MSME benefits.
Svigt af ensomme actin / abp obligationer Resultat af lavt carb diæt. Er du i behandling med kolesterol medicin eller den kemiske sammensætning af disse medikamenter er ofte ukendt eg der allerede har prøvet magiskpille.com og opnåede det ønskede resultat eg en interessant kendsgerning om herpes zoster er. Ved udgangen af næste måned er over syv millioner mænd over hele verden officielt diagnosticeret med tilstanden, som i l gehuse Farmaceutiske egenskaber.
Who are Not Eligible to Enroll with MSME?
- Any Retail or trading company.
- A services provider with investment above 20 crores.
- Manufacture with investment above 20 crores are not eligible to register with MSME.
The Department of MSMED categorize the companies in three level are –
Revised MSME Classification
Composite Criteria: Investment and Annual Turnover
|Manufacturing||Investment <Rs 1 cr.||Investment < Rs 10cr.||Investment < Rs 20 cr|
|Services||Turnover < Rs 5 cr.||Turnover < Rs 50 cr.||Turnover <Rs 100 cr|
Documents Required for MSME Registration
- Pan Number in case of a company, LLP, or cooperative society.
- Aadhar’s number and PAN of the applicant, an OTP shall be goto his mobile no. and email id for confirmation.
- Address Proof of establishment (Office address electricity bill, rent agreement in the case on lease).
- Bank Account Information (Bank Statement and canceled Cheque.)
Benefits for Companies under MSME
- Bank loans become cheaper than the interest rate is very low.
- Various Tax rebates offered to MSME.
- Easy clearance of pending payments on trademark and patent Fess.
- Apply for Government Tenders which are only open for the MSME industry.
- Higher preference provided is given for government license and certification.
Frequently Asked Question
What is the minimum investment required to register under MSME?
The enterprises go manufacturing and services providing with an investment of 1 Lakh or above are required to register under Msme Act.
Is it compulsory to register under MSME?
No, it is not compulsory to register under MSME but if the company or applicant wanted to take the benefits of government schemes they need to register under it.
In India how Msme sector plays an important role in the Indian economy?
MSME sector contributes in following manner –
- 45 % of India’s total industrial employment.
- 50 % of India’stotal export.
- 95%of all industrial units of the economy.
More than 6000 types of products are manufactured in these industries.
What id MSMED Act 2006 ?
This act is established to promote and develop the Micro, small and medium enterprises for running their business.
What is UAM(Udyog Aadhar Memorandums) ?
UAM is a registration form in a self -declaration format which can be filled online by Micro, small and medium enterprises. The MSMEwill be issued online a unique identifier 12 digit Udyog Aadhar Memorandums.
Is Aadhar Number mandatory for online registration?
Yes Aadhar number is mandatory for the issuance of the MSME certificate.
What are the Documents required for MSME?
For MSME registration mainly PAN number and adhar number required for registration for individual or proprietorship firm
⦁ For Company
⦁ PAN number of company
⦁ Address proof of the company
Bank Account details with canceled cheque are needed for registration.
When MSME Registration Certificate will be issued?
After filling online application, MSME Registration Certificate will be issued immediately at the email of the applicant.
What is the difference between MSME Registration and SSI Registration?
There is no difference between the MSME Registration and SSI Registration. Earlier SSI Registration was known as SSI Registration.
Can the existing Firm apply for an MSME Registration?
Yes, the existing Firm can apply for MSME registration.