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MSME Registration for Small, Micro and Medium Sized Organization

Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 gave us clear definitions as to what exactly are the meaning of Small, Micro and Medium Sized Enterprises. These definitions are based on the amount of investment in Plant & Machinery in case of production or any further processing of goods, and investment in equipments in case of Services.

Definition in relation to Goods

Enterprises

Investment in plant & machinery

Micro

Upto 25 lakh rupees

Small

More than 25 lakh rupees - 5 Crore rupees

Medium

More than 5 Crore rupees - 10 Crore rupees

 

Definition in relation to Services

Enterprises

Investment in plant & machinery

Micro

Upto 10 lakh rupees

Small

More than 10 lakh rupees - 2 Crore rupees

Medium

More than 2 Crore rupees - 5 Crore rupees

 

Ministry of Micro, Small and Medium Enterprises is responsible for formulation of all the laws and rules & regulations for implementation of such laws relating to MSMEs.

Micro, Small and Medium Enterprises form a major part of the economic sector of any developing country. MSME Act was introduced with an objective to support small, micro and medium sized enterprises to  promote equitable development.

 

IS MSME Registration Mandatory ?

The answer to this question is, NO. MSME Registration is only a choice provided to the enterprises and is not a compulsory requirement. It is a choice given to the SSI/MSME category entrepreneurs weather to get MSME registration or not. MSME registration is not an obligation and also comes with number of benefits including:

-          Subsidies under tax laws

-          of Power tariff subsidies, help in development of specialized industrial estates etc.

-          Exemption under Direct Tax Laws

-          Easy availability of Bank Loans that too at reduced interest rates.

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Are SSI Registration & MSME Registration different?

Many confuseSmall Scale Industries Registration with MSME registration, but the fact is that SSI Registration is replaced by MSME Registration. And there is no fuzz relating to it, as MSME Registration Process is quite simple. The appli8cant is required to have Aadhaar Card.

And if the applicant has not started business, they can apply for provisional registration. It is valid for a period of 5 years and can be reapplied after that.

Source url http://socialenginepro.com/demo_i_love_metro/blogs/13029/28504/msme-registration-for-small-mic

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