MSME Registration

MSME stands for Micro, Small and Medium Enterprises.

A microenterprise is an enterprise where investment in plant and machinery does not exceed Rs.25 lakh, for microservice less than 10 lakh.

A small enterprise is an enterprise where the investment in plant and machinery is more than Rs.25 lakh but does not exceed Rs.5 crore for small service between Rs.10 lakh to Rs.2 Crore.

A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 Crore but does not exceed Rs.10 crore for medium service between Rs.2 crore to Rs.5 crore.

MSMEs are classified into two categories :

1. Manufacturing Enterprises
2. Service Enterprises

Whether the Company is in the manufacturing line or the service line, registrations for both the types can be done through the MSME act. Although the Government has not made the registration of MSMEs mandatory, it is beneficial to get the business registered as it provides many benefits in terms of taxation, availing credit facilities, loans, setting up of business etc.

Benefits of MSME Registration

1. The bank loans become cheaper as the interest rate is extremely low around 1 to 1.5% , much lower as compared to regular loans.
2. It allows credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10.
3. Many tax rebates are available to MSMEs.
4. It allows easy access to credit.
5. Many government tenders are only open to MSME industries.
6. Once registered, the cost of getting a patent done or setting up of business is greatly reduced due to the availability of concessions and rebates.
7. There is a One Time Settlement Fee for unpaid amounts of MSMEs.
8. Businesses registered under MSME are given preference for government license and certification.
9. Businesses registered under MSME become eligible for Mudra loans.

One Time Payment ₹ 1,199.00