MSME stands for Micro, Small and Medium Enterprises. It was introduced by the Government of India in agreement with the MSMED (Micro, Small, and Medium Enterprises Development) Act of 2006. As per this act, MSMEs are the enterprises involved in the processing, production, and preservation of goods and commodities.
MSMEs are an important sector for the economy and have contributed immensely to the country’s socio-economic development. It not generates employment opportunities but also works hand-in-hand towards the development of the nation’s backward and rural areas.
MSMED Classified into two categories
•Manufacturing enterprises – Engaged in the manufacturing or production of goods in any industry.
•Services enterprises -Engaged in providing or rendering services.
Features of MSME
•Provides credit limit or funding support to various bank in the country.
•Support packaging, product development, and design intervention.
•MSME work for the welfare of the workers and artisans. They help them by giving employment and by providing loans and other services.
•MSME also support product creation, concept creativity, engagement, and packaging, in line with recent trends.
•MSMEs are known to provide reasonable assistance for improved access to the domestic as well as export markets for businesses.
•Supports technology up-gradation, infrastructural development, and modernization.3
On 13th may 2020, Finance Minister Nirmala Sitharaman added the additional Principal of turnover along with the investment
Who can apply for MSME Registration?
Proprietorships, Hindu Undivided Family, Partnership Firm, One person company, Limited Laibility Partnership, Private Limited Company, Producer Company, any association or persons , co-operative societies or any other undertaking can obtain MSME Registration in India.
Documents Required for MSME Registration
•Aadhaar card of the applicant
•Pan card of the applicant
•Bank account numer and IFSC code
How do we registered on msme ?
•Through Udyam Registration portal
Benefits of MSME Registration
•Electricity bills concession
•MSME are eligible for priority sector lending from bank.
•The Udyam Registration will help the MSMEs in availing the benefits of government schemes such as credit Guarantee scheme, credit linked capital subsidy scheme, protection against delayed payments, etc.
•50% subsidy on patent Registration
•Protection against delayed payments
•Reservation policy
The author can be however contacted for further clarification at 9654182791 or via mail at caajay92@gmail.com. The author is the founder of solutiontax.in an platform for filing income tax returns, company incorporation, accounting/bookkeeping, audits related compliances etc.
DISCLAIMER:- This Blog is for the purposes of information / knowledge and shall not be treated as solicitation in any manner or of for any other purposes whatsoever.
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