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Earlier known SSI registered entities are now known and registered as MSME, i.e.; Micro, Small and Medium Enterprises. MSME stands for Micro, Small and Medium enterprises, categorized based on the annual revenue in business. For availing the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
After registration, these entities possess MSME registration certificate, registered with MSME Department of the Central Government under MSME Development Act, 2006. The Act was passed for the promotion and growth of the businesses operating at small or medium scale.
Previously all major activities were eligible for registration under MSME, but now trading and other few activities are specifically excluded from eligibility. Although the registration is voluntary, businesses prefer to obtain MSME registration online due to numerous benefits declared by the government.
On 13th May, 2020, Government of India through Aatmanirbhar Bharat Package announced some major relief to the MSMEs. And one of the major reliefs is that the Government revised the definition of the MSMe as a whole.
Under the new definitions, the distinction between manufacturing and services enterprises has been eliminated and the investments have been revised upwards and an additional criteria of turnover has been introduced.
The registration of MSME is an online process The applicants can get the MSME Registration certificate with validity of lifetime in 3-5 working days. The certificate of MSME Registration is for both manufacturing sector and service sector enterprises.
As per revised definition, An enterprise shall be classified as a micro, small or medium enterprise on the basis of the criteria of investment and turnover. The criteria is as follows:
Category of Enterprise | Investment | Turnover |
Micro | Investment in plant and machinery or equipment does not exceed Rs. 1 crore (< Rs. 1 crore)
| Turnover does not exceed Rs. 5 crore (< Rs. 5 crore)
|
Small | Investment in plant and machinery or equipment does not exceed Rs. 10 crore (< Rs. 10 crore)
| Turnover does not exceed Rs. 50 crore (< Rs. 50 crore)
|
Medium | Investment in plant and machinery or equipment does not exceed Rs. 50 crore (< Rs. 50 crore) | Turnover does not exceed Rs. 250 crore (< Rs. 250 crore)
|
QuickBiz is a technology driven platform which offers legal & financial services over its team of professionals. Before applying this services applicant should know the list of advantages of this service in India.
For Micro, Small & Medium Enterprises, An MSME Certificate once applied requires no renewals. Its validity is for lifetime.
The bank loans provided to the MSMEs become extremely cheaper as the interest rate is very low, that is around 1 to 1.5%, once a person goes for Registration of MSME in India. The interest rate on loans is much lower than interest on regular loans.
There are no periodic returns to be filed in respect of it.
Enterprises that have MSME Registration Certificate can avail 50% subsidy for patent registration by making application to respective ministry.
Higher preferences are given to the businesses registered under MSMEs for government certification and license. There are many government tenders which are only open to the MSME Industries.
The Ministry of Micro, Small and Medium Enterprises provides protection to MSME registered businesses against delayed payment of buyers. When the buyers have accepted the goods or services, they are liable to make payment on time. There is right of interest on delayed payment through conciliation and arbitration and settlement of dispute be done in minimum time.
Our mission is to offer excellent support to our client in respect of all the legal compliances on affordable rates. Have a look at the list of documents required to avail this service.
Any entrepreneur having valid Aadhaar Number can apply for MSME Registration Online.
Yes, Aadhaar Number is mandatory for issuance of MSME Certificate.
Yes, MSME Registration is substituted with the Udyog Aadhar Registration. Any micro, small and medium industries, if want to start any business, they are required to do their Registration with MSME or Udyog Aadhar. The Registration with MSME or Udyog Aadhar can be done in two ways offline and online. This facility of Registration in two ways provides the business with several subsidies and benefits.
No, in India the MSMEs only covers manufacturing and service industries. The trading companies are not covered by the MSME scheme. MSME were introduced to support start-ups with benefits and subsidies, the trading companies are just like middlemen, that is a link between a manufacturer and customer. Hence, the trading companies are not covered under the scheme.
The validity of the Udyog Aadhar Certificate is for lifetime. As long as the enterprise is financially healthy and ethical there will be no expiry date of the Udyog Aadhar Certificate.
It is absolutely voluntary as the SSI Registration is only needed to avail subsidies and benefits. As the various benefits are given under to it, it is advisable for SMEs to obtain the same.