MSME meaning Micro Small and Medium Enterprises as defined under MSME development Act 2006.MSME registration is the procedure to get your firm registered under MSME development Act for SME benefits.There is no difference between MSME, SSI & Udyog Aadhar. There are all one and the same.
CLASSIFICATION –Manufacturing & Services
MICRO -Investment Less than Rs. 1 Crore And Turnover Less than Rs. 5 Crore
SMALL – Investment Less than Rs. 10 Crore and
Turnover Less than Rs. 50 Crore
MEDIUM – Investment Less than Rs. 50 Crore and
Turnover Less than Rs. 250 Crore
BENEFITS OF MSME REGISTRATION
Preference in procuring Government tenders
The Government of India gives special preference in buying from Micro and Small businesses through Govt.tenders.
Protection against the delay in payment from Buyers
Maximum period for payment for purchases from MSME shall not exceed 45 days, in case of delay, the buyer is liable to pay interest to the SME supplier, at 3 times of the bank rate.
Concession in Electricity bills
Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department
1% exemption on interest rate on Bank Over draft (OD)
Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on over draft (OD).
Special 50% discount on Govt. fees for Trademark & Patent
Enterprises that have MSME Certificate can avail 50% subsidy for patent & trademark registration.
Fast resolution of disputes
Enterprises undergoing a dispute with regard to payments may refer the dispute to the MSME Facilitation Council for conciliation & arbitration.
100% Collateral-Free Automatic Loans
12 Months Moratorium/Waiver on Loan Repayment.Fully covered under Govt. guarantee. No guarantee fee will be charged. Scheme available till 31st Oct, 2020.
Govt. will provide equity funding/invest in shares of MSMEs with growth potential through Fund of Funds scheme.
Support for Listing at Stock Exchanges
Govt. will help to expand MSME size as well as capacity,will encourage MSMEs to get listed on main board of Stock Exchanges.
DOCUMENT REQUIRED FOR MSME REGISTRATION
- Company PAN card or Proprietor’s PAN card
- MOA, AOA & Incorporation Certificate or LLP Agreement/ Partnership deed or Shop License
- Company Address Proof or Firm Address Proof