MSME means Micro, Small and Medium Enterprises which are regulated by the MSMED Act, 2006. MSME Registration or SSI Registration is granted basis the investment made in plant and machinery. MSME recognition has been given to the Manufacturing Sector and Service Sector enterprises.
However, MSME Registration is an optional Registration under the MSMED Act but it provides Micro, Small and Medium-sized enterprises with a host of benefits such as interest rate concessions, tax benefits and access to a range of subsidies and schemes, and saves from payment default aimed at developing MSMEs.
As per MCA notification dated 22 Jan 2019 relating to MSME, every Company has to report the default in the payment made towards an MSME recognized entity. A Company has to make payment for supply from MSME entities within 45 days to avoid such reporting. MSME registered entities are eligible for Capital Subsidies, Interest rate subvention, Business marketing, and expansion support, and Power tariff subsidies.
A dedicated portal has been provided by the government for MSME registered entities to report a delay in payment by any customer beyond 45 days. Further Ministry of Corporate Affairs has asked all corporate entities to report delayed payments to MSME through half-yearly form MSME-1.
To Promote Women entrepreneurship special incentive is given to MSMEs having women entrepreneurs. Credit Link capital subsidy and state-wise special incentive are provided. Incentives by states and Union territories are provided from time to time to the entities having MSME registration.
As per the union budget announcement in 2019, Entities having an MSME registration can avail Interest rebate @ 2% on loan taken from banks and Financial Institutions. Interest rebate will ease the financial burden of small businesses and make them more competitive.
50% Subsidy on patent registration is provided by the government. ISO 9000/ISO 14001 Certification reimbursement scheme, where the government provides reimbursement of expenses of 75% up to a maximum of 75000 to each unit as one-time reimbursement.
Investment in Plant and Machinery:
Micro <25 Lakhs.
Small >25 Lakhs but <5 Cr.
Medium >5 Cr but <10 Cr.
Investment in Equipment:
Micro <10 Lakhs.
Small >10 Lakhs but <2 Cr.
Medium >2 Cr. but <5 Cr.
Make the payment of Professional Registration fees
Arrange to provide basic documents as per the list provided by us
An application is filed through the MSME Portal
MSME Registration Certificate is provided.
MSME stands for Micro, Small and Medium Enterprises. Definition criteria are different for the Manufacturing sector and service sector.
MSME Registration is an optional registration which can be chosen by entities in manufacturing and service sector. Criteria of classification are given below,For Manufacturing Sector
Entities having MSME Registration enjoy a host of benefits from the government. Following are the benefits one gets by registering into MSME.
MSME definition criteria are different in the manufacturing and service sector. However, both sectors enjoy the same benefits.
The government provides reimbursement of expenses of 75% up to a maximum of 75000 to each unit as one-time reimbursement. The MSEs which have already acquired QMS/EMS/HACCP certification are covered under this.
Under this scheme, the rating fee payable by the micro and small enterprises is subsidized for the first year only, subject to a maximum of 75% of the fee or Rs. 40000/-, whichever is less. The credit rating is being done by empaneled agencies like CRISIL, CARE, ONICRA, SMERA.
Priority sector lending is employment-intensive such as Agriculture and MSME.
MSME can obtain a collateral-free loan from banks and financial institution. MSME enjoys interest rate subsidy under priority lending. Banks are advised to open specialized branches for MSME funding.
As per Micro, Small and Medium Enterprises Development (MSMED), Act 2006, For the goods and services supplied by the MSME units, payments have to be made by the buyers within 45 days. If buyer unable to pay within 45 days it shall be liable to pay compound interest with monthly rests. With the Latest Amendment in Company Act 2013, all corporate entities need to report the delayed payment to MSME Supplier in case payment exceed 45 days with a reason of delay.
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