What is Micro, Small and Medium Enterprises?

MSME is classified under two categories.

  • Manufacturing Enterprise
  • Service Enterprise

They are defined in term of investment in plant and Machinery/Equipment-

Enterprises Micro Small Medium
Manufacturing Rs. 25 Lakh More than Rs. 25
Lakh but less
than Rs. 5 Crore
More than 5
Crore but less
than 10 Crore
Service Rs. 10 Lakh More than Rs. 10
Lakh but less
than 2 crore.
More than 2
Crore but less
than Rs. 5 Crore.

Registration Process

  • The owner has to fill a Single form which he can do online as well as offline.
  • For more than one Industry then also he/she can do individual registration.
  • Owner has to fill a single form which is available at the MSME website along with documents required. Source: https://www.msmeregistration.org/.
  • No registration fees required for this process.
  • Once the details filled and upload the form you would be get the registration no.

Documents required if a Company wants to register under MSME.

  • If the entity is any Company, then any of one Director must have Aadhaar No.
  • Entity must have Mobile No. & Email ID.
  • No. of person employed in such entity.
  • Self-Declaration/Self Certificate from Director regarding amount of Investment in Plant and Machinery/Equipment.
  • Registered address proof of the Company.
  • PAN No. of the Company.
  • MOA & AOA of the Company.
  • Copy of any sale bill and purchase bill and supply bill.
  • Copy of any Industrial License obtained.

Benefits of MSME registration to Company:

  • Bank loan is cheaper than regular loan. Interest rates is very low around 1- 1.5%.
  • Tax Rebates.
  • Credit of MAT to be carried forward to 15 years instead of 10 years.
  • Government tender easily available.
  • Easy access to Credit.
  • Higher preference for Govt. licenses and certifications.
  • No. fees

MSME schemes launched by the Govt.

1. Udyog Aadhaar memorandum:

  • 12 Digits number given to all individuals by Govt.
  • Benefits in this scheme is ease in availing Credit, loans, and subsidies from Govt.
  • Registration in both ways online and offline.

2. Zero Defect Zero Effect:

  • Goods manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India.
  • In this, if the Goods are exported these are eligible for some rebates and concessions.

3.Quality Management Standards & Quality Management tools:

Registering in this scheme will help the Micro, small, and medium enterprises to understand and implement the quality standards that are required to be maintained along with new technology.

4. Grievance Monitoring System:

This Scheme is beneficial in terms of getting the Complaints o the business owners addressed.

5. Incubation:

  • This scheme helps innovators with the implementation of their new design, ideas, or products.
  • Under this from 75% to 80% of the project cost can be financed by the Government.

Women Entrepreneurship:

  • This Scheme is especially started for women who want to start their own business.
  • The government provides capital, counselling, training and delivery techniques to these women so that they manage their business and expand it.

Source: https://www.my.msme.gov.in/mymame/reg/home.aspx


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October 2020