What is the definition of MSME ?
The existing MSME classification was based on the criteria of investment in plant and machinery or equipment. Existing MSME Classification are given as below:
|Manufacturing||Investment||< Rs 25Lakh||< Rs 5 crore||< Rs 10 crore|
|Service||Investment||<Rs 10Lakh||<Rs 2 crore||<Rs 5 crore|
Now, the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. The following is the revised MSME classification, where the investment and annual turnover, both are to be considered for deciding an MSME.
|< Rs 1 Crore
< Rs 5 Crore
|< Rs 10 Crore
< Rs 50 Crore
|< Rs 50 Crore
< Rs 250 Crore
Q 1. How can I apply for MSME registration?
Ans: Any type of business can apply for MSME registration.
Q 2. Is Aadhaar number mandatory for online MSME registration?
Ans: For MSME registration, Aadhaar card is mandatory.
Q 3. Can MSME borrowers get collateral free loans from financial institutions?
Ans: Yes MSME borrowers get collateral free loans from financial institutions
Q 4. Is credit score necessary for MSMEs?
Ans: No, credit score is not required for MSMEs.
Q 5. Do I get a hard copy or physical copy of the MSME certificate?
Ans: Government has initiated paperless work, so no physical copy is issued. However, the authority emails the certificate instead.
Q 6. Do I need multiple registrations for manufacturing plants in different cities?
Ans. No. The MSME/Udyog Aadhar certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.
Q 7. Can existing and new businesses both apply?
Ans. Yes, an existing and new business can apply for MSME/Udyog Aadhar registration.
Provided the existing unit is functioning and meets the threshold limits for registration.