Micro Small & Medium Enterprises (MSME)
MSME stands for Micro Small and Medium Enterprises, it is considered as the backbone of Indian economy, All the small scale industries (SSI) and MSME get various government benefits in the form of subsidy
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Small Scale Industries (SSI) Udyog Aadhaar MSME is Micro Small and Medium enterprises; it is governed by The Micro, Small and Medium Enterprises Development Act 2006 commonly abbreviated as MSMED Act 2006, and is regulated by Ministry of Micro Small and Medium Enterprises, and Government of India. National Portal for registration of Micro small and Medium Enterprises can be accessed on udyamregistration.gov.in and msme.gov.in In accordance with the definition of MSME as contained in MSMED Act 2006, there are certain criteria for classification of industries based upon its investment in Plant & Machinery
India has substantial number of Micro small and medium enterprises entities providing employment opportunities and contributing to economic growth by exporting goods and services.
Thus, in order to strengthen the MSME entities Government of India provide various incentive and subsidy.
The registration of MSME entities are not mandatory and there is no penalty on non-registration, but in order to avail various incentives and subsidies provided by Government it is recommended to get MSME Registration.
Registration of MSME entities are regulated by Ministry of Micro Small and Medium Enterprises.
This ministry, through its registration portal for MSME grant and issue “Udyog Aadhaar”. Its portal can be accessed on udyogaadhaar.gov.in
Udyog Aadhaar is a unique identification number of 12 digits allocated to Micro Small and Medium Enterprises. Udyog Aadhaar is commonly abbreviated as UA. It serves as the identification of MSME entities in India.
Every MSME entity in India can get this Udyog Aadhaar by filing online or offline for Udyog Aadhaar Memorandum, it is simple registration form for generating Udyog Aadhaar. If any person has multiple business entities then multiple Udyog Aadhaar can be generated.
Benefits available for Micro Small and Medium Enterprises are:
|Category of Enterprises||Manufacturing Entities||Service related entities|
|Micro Enterprises||Plant & Machinery should be less then INR 25 Lakhs||Investment in equipment should be less than INR 10 Lakhs|
|Small Enterprises||Plant & Machinery should be less than INR 5 crore but more than 25 Lakhs||Investment in equipment should be less than INR 2 crore but more than 10 Lakhs|
|Medium Enterprises||Plant & Machinery should be less then INR 10 crore but more than 5 crore||Investment in equipment should be less than INR 5 crore but more than 2 crore|
- Subsidised rate of interest on Loan and Collateral Free Loan
- Capital Subsidy
- Waiver in Security Deposit for Government Tenders
- Concessional rate of electricity on production of MSME certificate / Udyog Aadhaar
- Special consideration to MSME sector in Government Tenders
- Various direct and indirect tax rebates are available to MSME
- Government schemes for woman entrepreneurs in MSME category
- Subsidy in registration cost of Patent, obtaining ISO certificate etc.