How to Register your Business as MSME? Whats are the Advantages of MSME registration?
MSME stands for Micro, Small and Medium Enterprises
A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh; (25 Lakhs for units engaged in manufacture or production, processing or preservation of goods)
A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; (25 Lakhs to 5 Crore for units engaged in manufacture or production, processing or preservation of goods)
A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.(5 Crore to 10 Crore for units engaged in manufacture or production, processing or preservation of goods)
Revised Criteria (Effective Date not known)
| Classification | Micro | Small | Medium |
| For Service and enterprises engaged in manufacture or production, processing or preservation of goods | Investment in Plant and Machinery should not exceed 1 crore and Turnover should exceed Rs.5 crore | Investment in Plant and Machinery should not exceed 10 crore and Turnover should exceed Rs.50 crore | Investment in Plant and Machinery should not exceed 20 crore and Turnover should exceed Rs.100 crore |
Advantages of MSME
- Collateral Free loan under CGTMSE scheme up to a maximum limit of Rs 1 crore
- Credit linked Subsidy of 15% of technology adoption cost. Maximum subsidy is limited to Rs.15 lacs.
- Reimbursement of 75% of the certification expenses up to a maximum of Rs.75,000/- for ISO Certifications
- Concessional fee (discount upto 50%) on Government fee for Trademark and patent applications.
- Concessional Electricity charges
- Protection against delayed payment exceeding 15 days from the date of delivery of good/ service or date of agreed payment. After 45 days delay, Interest which is calculated 3 times the RBI rate is payable to MSME from the buyer of Goods and Services.
Requirements for MSME Registration
- Aadhar Card of the Sole proprietor/ Managing Partner/ Designated Partner/ Managing Director
- Social Category of the applicant (General, Scheduled Caste, Scheduled Tribe or Other Backward Castes (OBC).
- Whether applicant physically handicapped or not
- Name of Business
- Type- Individual (sole proprietor)/ Partnership firm/ Limited Liability Partnership or Company
- Location of the Plant or Branches if any
- Address of the office with PIN Code
- Date of Commencement of Business. (MSME application can be made only after the activity of the Business is started)
- Bank account details of the Business with Bank name, Branch address, IFSC and Account number
- Products or services of the Organization including proposed ones
- Number of Employees employed
- Cost of the Plant and Machinery, Equipment including Computers and furniture if any