MSME Registration: What is it? Criteria? Benefits?

 MSME as everyone knows refers to Micro, Small, and Medium Enterprises. In rapidly developing and growing countries like India, MSME companies and industries play the role of the backbone of our nation’s economy. The MSME (Micro, Small & Medium Enterprises) sector contributes about 45% of India’s overall industrial employment and 50% of India’s total export, and more than 6000 kinds of products are manufactured in the market. You need to know that when the industry expands and grows, the economy of the nation grows and thrives. Such industries are also referred to as small-scale industries. Before you sign up for SSI registration online, you must know what it is and its advantages to businesses.

MSME

What are MSME (Micro, Small & Medium Enterprises)?

The Indian government has introduced MSME or in other words, Micro, Small, and Medium Enterprises agreeing with MSMED (Micro Small and Medium Enterprises Development) Act of 2006. These industries largely engage in the production, processing, manufacturing, and also preservation of goods. MSME plays an important role in the Indian economy sector and has supported quite largely the nation’s socio-economic development. Not only it has increased employment opportunities for people but also contributed immensely towards the development of the country’s backward and rural areas. You can make MSME registration online with proper expertise on-board. Since it may seem a bit daunting, it is beneficial for one to let a professional CA take care of such a job for you.

What are the criteria of MSME Classification?

The existing MSME (Micro, Small, and Medium Enterprises) classification is based on the criteria of investment in the equipment, plant, and machinery. To enjoy the benefits, the MSME has to restrict the investment to a certain yet lower limit. For a further but better explanation, read through the below listed…

Sector

Criteria

Micro

Small

Medium

Manufacturing

Investment 

< Rs.25 lakh

< Rs.5 crore

< Rs.10 crore

Services

Investment 

< Rs.10 lakh

< Rs.2 crore

< Rs.5 crore

Sometimes, the lower and restrictive aspects eliminate the urge to grow and thrive as they make it difficult for one to scale their business. You can make SSI Registration Online with the help of an experienced and professional CA. Also, there has been a huge demand for a revision of MSME classification, so that they can expand their business and operations to attain all the benefits.

What are the Benefits of MSME Registration? 

Loans without Collaterals: The government of our country has introduced inventiveness for SSI or MSME that permits one to attain credit without worrying about collateral. One of the trusted and best MSME registration online benefits, the initiative offers a collateral-free loan that is undertaken by the Government of India, Ministry of MSME (Micro, Small and Medium Enterprises), and SIDBI (Small Industries Development Bank of India). This is done under the name of the Credit Guarantee Trust Fund Scheme- it is one of the best registration advantages for small business operators or owners. Find CA services online to have a professional take care of the registration process with precision and care.  

Overdraft Facility with Interest Rate Indemnity: You must know that businesses that are registered as SSI/MSME under the MSME act meet the eligibility criteria to attain the benefits of 1% on overdraft. It usually is done as a part of the CGTFS (Credit Guarantee Trust Fund Scheme). 

Now that you understand all about MSME, what are waiting for? Connect with the Income Tax consultant or professional CA to have an expert on board with you.

Location: India

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