Introduction to Micro, Small and Medium Enterprises (MSMEs)
MSMEs stand for Micro, Small, and Medium Enterprises, these are that classes of enterprises which works and operates on small scale in comparison to big tycoon enterprises.
Undoubtedly, MSMEs are small in their size but they are large in number. This MSMEs contributes in the economy of the country, therefore their existence are of critical importance. It is also pertinent to note that this sector is one of the principal contributors to gross domestic product, Exports and employments generation. Therefore keeping in mind the same thing government if India always plays a important role in development and growth of MSMEs. Government always holds the hand of MSMEs and endeavors for their benefit as more as possible.
The key rational behind the classification of enterprise is to separate them from other enterprises and to pay special attention which they deserves.
Initially, the concept of MSMEs has been introduced in 2006 under MSMEs Act, 2006. Under this law, MSMEs falling in eligible criteria were required to register as MSMEs. After successful registration such MSMEs will get benefit instituted under the act and benefits later on developed by the government.
Earlier, MSMEs were required to obtain various registrations under different registrations windows to avail various benefits, later on government had realized this problem and introduced a single window registration system known Udyog Aadhar (UA) registration, this registration system has been renamed for multiple times such as: SSI Registration, entrepreneur’s memorandum.
The tag of MSME and registration under it is allowed for manufacture or producer and service provider only. Any manufacturer or service provider falling under eligibility criteria may register itself/himself under the single
|Enterprise||Investment in plant & machinery/ Equipment||Turnover|
|MICRO||Up to 1cr.||Up to 5cr.|
|SMALL||Up to 10cr.||Up to 50cr.|
|MEDIUM||Up to 50cr.||Up to 250cr.|
window registration system for MSMEs. Following is the updated eligibility criteria w.e.f 1st July 2020.
Enterprises qualifying the eligibility criteria are required to register as MSME to avail the benefits and to recognizeas such. Registration system has been updated for several times in order to meet latest and prevailing needs and requirements. Now the government of India has introduced a new system known as UDYAM REGISTATION, it is completely online procedure.
One can apply for udyam registration online on www.udyamregistration.gov.in
Must know about udyam registration