1. MSME and governance:-
-MSME refers to Micro, Small and Medium Enterprises.
–Micro Small and Medium Enterprises (MSMEs) are crucial for the economic growth and stability of any country and play a vital role especially for developing countries as they facilitate economic activity and provide employment thus contributing to poverty reduction
-In India, it is governed under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
-The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex executive body for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
Existing criteria of classification- Based on Investment in Plant and Machinery:-
|Classification||Manufacturing Sector||Service Sector|
|Micro||Not exceeding Rs. 25 Lakhs||Not exceeding Rs. 10 Lakhs|
|Small||> 25 Lakhs but not exceeding Rs. 5 Crore||> 10 Lakhs but not exceeding Rs. 2 Crore|
|Medium||> 5 Crore but not exceeding Rs. 10 Crore||> 2 Crore but not exceeding Rs. 5 Crore|
New criteria of classification- Based on Investment and annual turnover
|Classification||Manufacturing and Service Sector|
|Micro||Investment < Rs. 1 Crore
TO < Rs. 5 Crore
|Small||Investment < Rs. 10 Crore
TO < Rs. 50 Crore
|Medium||Investment < Rs. 20 Crore
TO < Rs. 100 Crore
3. Who can apply:-
4. Activities not allowed for MSME registration:-
|02||Forestry and logging|
|03||Fishing and aquaculture|
|45||Wholesale and retail trade and repair of motor vehicle and motorcycles|
|46||Wholesale trade except of motor vehicles and motor cycles|
|47||Retail Trade Except of Motor Vehicles and motor cycles|
|97||Activities of households as employees for domestic personnel|
|98||Undifferentiated goods and services producing activities of private households for own use|
|99||Activities of extraterritorial organization and bodies|
6. Benefits of registration:-
7. Information required for registration:-
8. Website for Loan to MSME:- udyamimitra.in
Disclaimer: This article is for informational purposes only, but not promised or guaranteed, to be correct, complete, and up-to-date and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
About Author: CA Sandeep Bansal, is a practising Chartered Accountant based out of Delhi and is an associate member of the Institute of Chartered Accountants of India since 2015. Possesses sound professional experience for approx. 5 years in the field of Income tax, GST, Auditing, Company law etc. He keens to gain expertise over different areas and ensure to keep himself updated.
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