The Government of India G.O.I. made a new definition of MSMEs by the Micro, Small, and Medium enterprises development (Amendment) Bill, 2018 to classify them as manufacturing or service-providing enterprises. The new definition of MSME says that there is no difference between the manufacturing and service sectors.
Under the new bill, there would be no need for frequent inspections to check the required investments needed to be made in the plant and machinery.
The operation of MSME registered entities enjoys advantages such as power tariff subsidies, direct taxes, exemption from excise, and many others.
The MSME is one of the major sectors of the Indian economy and has given a major contribution to the socio-economic development of the country.
OUR BLACKTIE LEGAL SERVICES INDIA LLP INDIA WILL HELP IN THE PROCESS OF MSME REGISTRATION.
CLASSIFICATION OF MSME :
Micro businesses are businesses whose investment in Plant and Machinery or Equipment does not exceed more than Rs.1 crore and annual turnover does not exceed more than Rs. 5 crores.
Medium businesses are businesses whose investment in Plant and Machinery or Equipment does not exceed more than Rs.10 crore and annual turnover do not exceed more than Rs. 50 Crore.
Small businesses are those whose investment in Plant and Machinery or Equipment does not exceed more than Rs.50 crore and annual turnover does not exceed more than Rs. 250 crores.
BENEFITS OF MSME REGISTRATION:
Micro, Small, and Medium Enterprises can easily get repayment-free loans from Banks and financial institutions. The unsecured loans borrowed by the MSMEs will be covered with guarantee covers from the government.
Reduction on Patent Registration
Patent fees have been reduced for startups and small-scale businesses.
By giving loans at a low-interest rate, the government provides financial help to the MSMEs to put into effect the latest technologies for their business.
Give Protection from delayed payments:
Through online e-samadhan, small enterprises can file their complaints to get a quick resolution to the problems related to delayed payments.
Discount on Trademark & Patent fees:
The government gives a 50% discount on the official fees for newly launched businesses and small-scale industries.
Interest Rate Exemption On Overdrafts:
The Banks provide overdraft loans to the MSMEs based on the turnover reported in their GST return. Many Banks have started digitalized services for quick overdraft loans.
Protection Against Delayed Payments:
MSMEs can file complaints online if they do not receive the payment within the stipulated amount of time.
The government gives marketing support that can get reimbursement for the registration fees of the barcode.
Availability of government tenders:
The registered enterprises can easily get the government tenders without having to pay the security money for the participation. The MSMEs are exempt from paying the security bid money.
Technological and quality support:
The government gives technological and quality support to the MSMEs to encourage them to implement and to reduce the cost of production and reduce the emission of greenhouse gases.
The documentary obligations to be fulfilled to be registered as MSME, under the prescribed Act are:
Aadhar card of the applicant
Pan card (if a proprietor), company/firm Pan card
Bank account details
Office/plant address and proof
Articles of association
Memorandum of association
Bills of the equipment employed
The applications for MSME registration are filed on the MCA website in the prescribed format
The documents attached with the application are to be self-certified and uploaded. Upon acceptance of the application, a registered E-mail ID with Udyog Aadhar Number and Certificate of Registration will be provided. The registration can be done offline as well.
ELIGIBILITY FOR MSME REGISTRATION:
Following are the eligible categories for MSME registration
HUF (Hindu undivided family)
Limited liability partnership
Private limited company
Any association of persons
It is one of the major emerging sectors in India and generates numerous job opportunities. These industries lack funds because of their small-scale size. The MSME certificate gives you numerous benefits such as capital subsidies, overdraft loans, seminars, etc.