The Government of India has classified enterprises into a category known as MSME- Micro, Small and Medium Enterprises. MSME Act has been formed to supports and promotes micro, small and medium size industries across the country by providing subsidies and incentives to industries.To subscribe under MSME, a registration procedure is compulsory. Apart from the micro, small and medium level enterprises, proprietorship firms, LLPs, public and private limited companies can also register under MSME.
Before registration, everybody should know the classification and benefits of registration:
Micro industries- The investment does not exceed 25 lakh for companies in the manufacturing sectors and 10 lakh for the service sector.
Small industries- The investment does not exceed 5 crore for companies in the manufacturing sectors and 2 crore for the service sector.
Medium industries- The investment does not exceed 10 crore for companies in the manufacturing sectors and 5 crore for the service sector.
Benefits of MSME Registration
1. Colleteral free loan
2. 50% less fee for Trademark and patent registeration
3. 1% exemption on interest rate on overdraft
4. Eligible for Industrial Promotion subsidy
5. Protection against delayed payments
6. There are many more benefits in electicity bill and reimbursement of ISO Certification
Checklist for MSME registration online:-
1. Aadhar NO
2. Board resolution
3. Bank details
4. Investment details
5. list of directors
6. Certificate of incorporation