What is MSME Registration.
MSME stands for Micro, Small and Medium Enterprise (MSME), introduced by Government of India in agreement with Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 are entities engaged within the production, manufacturing, processing or preservation of products and commodities.
MSME sector is taken into account because the backbone of Indian economy that has contributed substantially within the socio-economic development of the state . It generates employment opportunities and works within the development of backward and rural areas. As per the Government’s annual report 2018-19, there are presently 6,08,41,245 MSMEs in India. For your understanding let’s discuss a number of the fundamentals of MSME, including its classification, features, role and importance in socio-economic development of India.
Key Services Offered Are:
- Registration under MSME
- File the memorandum [Udyog Aadhaar Memorandum] of micro, small or medium enterprise.
- Representation in Micro and Small Enterprises Facilitation Council for Arbitration and Conciliation of dispute
- GST Registration, Return, Refund & Assessment
- Income Tax return &, assessment
- ROC return
- Board resolution & minutes
- Shareholder meeting & resolution
What entities are eligible for MSME / SSI Registration?
Micro Enterprises: These are the littlest entities, of course. Micro manufacturing enterprises have investment of but Rs. 25 lakh in plant and machinery, while micro service enterprises have but Rs. 10 lakh invested in equipment.
Small Enterprises: Small manufacturing enterprises may have between Rs. 25 lakh and Rs. 5 crore invested in plant and machinery, while small service enterprises may have between Rs. 10 lakh and Rs. 2 crore invested in equipment.
Medium Enterprises: Medium manufacturing enterprises may have between Rs. 5 crore and Rs. 10 crore invested in plant and machinery, while small service enterprises may have between Rs. 2 crore and Rs. 5 crore invested in equipment.
For manufacturing entities, however, land and building can’t be counted toward the entire investment. Also, the first cost of the equipment and plant and machinery is taken into account; depreciation can’t be factored in. Any business entity may apply, be it a partnership or a corporation . Sole proprietors can also apply.
What are the advantages of MSME Registration?
There are multiple benefits available to a corporation registered under MSME and a few of them are:
- you’ll get cheaper bank loans
- Tax Benefits
- Tender preferences
- Access to Mudra loan scheme
