Micro, Small & Medium Enterprises (MSME) is a business whicih is a engaged in the manufacture or production of goods pertaining to any industry or engaged in providing or rendering of services, having investment in plant machinery or equipment as per the prescribed norms.
Norms for classification:
Manufacturing sector:
| Enterprises | Investment in plant & machinery (I) |
| Micro Enterprises | I < 25 lacs |
| Small Enterprises | 25 lacs < I < 5 crores |
| Medium Enterprises | 5 crores < I < 10 crores |
Manufacturing Sector:
| Enterprises | Investment in equipments (I) |
| Micro Enterprises | I < 10 lacs |
| Small Enterprises | 10 lacs < I < 2 crores |
| Medium Enterprises | 2 crores < I < 5 crores |
Benefits of MSME Registration:
1. Priority Lending: Banks, by virtue of the directions issued by the Reserve Bank of India, have certain earmarked funds that have to mandatorily be given to MSME businesses.
2. Lower Interest Rates: With an MSME Registration, all banks are specifically instructed to offer loans at interest rates lower than the usual and one may be able to avail this benefit from several banking institutions for their financing needs.
3. Income Tax Benefits: There are various sections under income tax which provides tax benefits to MSMEs. The benefit of a presumptive basis of taxation is available to enterprises, which relieves one from maintaining detailed books of accounts and undergoing audit procedures.
4. Credit Linked Guarantee Scheme: The Ministry of Micro, Small and Medium Enterprises and the Small Industries Development Bank of India (SIDBI) have established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) specifically to implement Credit Guarantee Fund Scheme for micro and small enterprises. This scheme allows collateral-free loans of up to 50 lakhs for individual MSMEs.
5. Infrastructure developement grants: Since MSMEs is a sector generating employment and giving entrepreneurial ventures a boost, the government also identifies training sectors for MSME and gives capital grants for improvisation of the infrastructure and support for entrepreneurial development.
6. Reimbursement of ISO Certification: To promote the standards and certifications received by MSMEs in a bid to enhance their performance across sectors, all registered micro and small industries can avail an exemption of all expenses incurred for obtaining ISO 9000, ISO 14001 and HACCP certifications.
Reach out to us for availing the above benefits from MSME registration. Our team can get it done for you in a jiffy.