ABOUT MSME REGISTRATION
The Micro Small & Medium Enterprises (MSMEs) are defined in India under the MSMED Act 2006 on the basis of capital investment made in plant and machinery, excluding investments in land and building. The Union Cabinet approved a proposal to change the definition of Micro, Small and Medium enterprises. Since 1950s Small Scale Industries (SSIs) and later MSMEs have been traditionally defined based on their investment in plant and machinery for manufacturing units, and investment in equipment for service enterprises, and now the new definition define them based on their annual turnover.
It will be easier now for authorities to verify claims of businesses using the sales data they have from the GST Network. This will eliminate the need for inspections, make the classification system progressive, and contribute to ease of doing business as well. It is also expected that with this new definition the Government will do away with those clauses that exclude medium sector from various promotional schemes for the sector.
Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy as may be prescribed by the government in this behalf.
Enterprises that have MSME Registration Certificate can claim reimbursement of ISO Certification expenses by making application to respective authority.
Charges are lower for MSME registered company for facilities such as electricity and GST exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department along with MSME Registration Certificate.
MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
ACCESS TO TENDERS
There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.
Aadhar Card of Proprietor / Partner / Director
PAN Card of Proprietor / Firm / Company
Mobile Number of Proprietor / Partner / Director
Email Id of Proprietor / Partner / Director
GST / Company / Any Other Registration Certificate
Cancelled Cheque / Bank Statement of Proprietor / Firm / Company
Factory Address and Office Address
Number of Employee
These are the smallest entities, of course. Micro manufacturing enterprises have investment of less than Rs. 25 lakhs in plant and machinery, while micro service enterprises have less than Rs. 10 lakhs invested in equipment.
Small manufacturing enterprises may have between Rs. 25 lakhs and Rs. 5 crores invested in plant and machinery, while small service enterprises may have between Rs. 10 lakhs and Rs. 2 crores invested in equipment.
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.