MSME Registration can be helpful to get the benefit under various scheme of Central and State government. Now, banks and financial institution also giving a loan to these entities at cheaper rates. In today cut throat competition, MSME registration comes as a boon for small and medium enterprises.
MSME
Why MSME Registration ?
More about MSME
MSME stands for Micro, small and medium enterprises. They all are small sized enterprises and backbone of any developing economy like India. These entities provide employment to the large section of unskilled and semi-skilled workers. To support MSMEs the government through MSMED Act provides various subsidies and incentives. Many banks and financial institution have also recognized and created special scheme for MSMEs
The MSME registration is not statutory but to avails benefits under the MSMED Act, MSME Registration is required. The benefits include bank loan at lower rates, excise exemption scheme, the exemption under various laws and other statutory support.
Classification of MSMEs
A Micro-Enterprise is an enterprise where the investment in equipment does not exceed 10 Lakh
A Small enterprise is an enterprise where the investment in equipment is more than 10 lakhs but does not exceed 2 Crores
A Medium enterprise is an enterprise where the investment in equipment is more than 2 Crores but does not exceed 5 Crore
