What MSME Enterprises Mean??
Small entrepreneurs are the real backbone of country’s developing economy. MSME enterprises provide major supply of Raw Materials and Supply of processed goods and finished products.
How To Distinguished MSME Enterprises?
The MSME Enterprises are distinguished on the basis of investment made in Plant and Machinery and equipments.
- Micro enterprises– Entities investing less than Rs.25 lakhs in plant and machinery.
- Small enterprises– Entities investing between Rs. 25 lakhs and Rs. 5 crores in plant and machinery.
- Medium enterprises– Entities investing between Rs.5 crores and Rs.10 crores in plant and machinery.
MSME enterprises in the service sector can be categorized on the basis of amount invested in equipment-
- Micro enterprises– Entities investing less than Rs.10 lakhs.
- Small enterprises– Entities investing more than Rs. 10 lakhs but less than Rs. 2 crores.
- Medium enterprises– Entities investing Rs. 2 crores but less than Rs. 5 crores.
Who Can Opt For MSME/Udyog Aadhar?
Small Scale Industries (SSI) or Micro, Small and Medium Enterprises (MSME) can register themselves under the Micro, Small and Medium Enterprises Development Act to avail benefit under MSMED Act from Government and Other Sectors. To boost Small Scale businesses, GOI launched Udyog Aadhar Registration. It is a relief from lot of paperwork earlier required for SSI Registration or MSME Registration.
Why To Opt For Msme/Udyog Aadhar?
For promotion and development of Micro, Small and Medium Enterprises the government of India is providing many Benefits to such ventures.
How To Avail Benefit Of MSME/Udyog Aadhar?
To comply for MSME, manufacturing enterprises need to have investment of less than Rs. 10 crore in plant and machinery, and for service enterprises shall have less than Rs. 5 crore invested in plant and machinery. If at any time any of prescribed limit is crossed applicant needs to cancel registration MSMED Act.
What Are The Benefits Of MSME/Udyog Aadhar?
- Government Subsidies
- Loans from bank at concessional rates
- Tax Subsidy
- Ease in International trade fair participation
- NSIC credit Rating
- Preference in Government Tenders Micro enterprises– Entities investing less than Rs.25 lakhs in plant and machinery Small enterprises– Entities investing between Rs. 25 lakhs and Rs. 5 crores in plant and machinery Medium enterprises– Entities investing between Rs.5 crores and Rs.10 crores in plant and machinery
What is the Validity of MSME Certificate?
The validity of MSME Certificate ceases when the Enterprise crosses the limits. The Provisional Registration Certificate will be valid for 5 years from the date of issue of PRC. Now days, Udyog Aadhar has no expiry till date.
What Documents are required for MSME/Udyog Aadhar?
- Business Identity Proof (PAN- mandatory)
- Business Address Proof( Electricity Bill)
- Bank Details( Cancelled Cheque)
- Aadhar Copy (Linked with Mobile No for verification through OTP) (Mandatory)
- Investments Details
- Number of Employees
- Nature of Business
- Contact Details