Registration under MSMED Act, 2006
MSME stands for micro, small and medium enterprises, and these are the backbone of any developing economy. To support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required. The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt
BENEFITS OF MSME/SSI REGISTRATION
1. Easy finance availability from Banks, without collateral requirement.
2. Protection against delay in payment from Buyers and right of interest on delayed payment.
3. Preference in procuring Government tenders.
4. Stamp duty and Octroi benefits.
5. Concession in electricity bills.
6. Reservation policies to manufacturing / production sector enterprises.
7. Time-bound resolution of disputes with Buyers through conciliation and arbitration.
8. Reimbursement of ISO Certification Expenses.
9. Credit prescription (Priority sector lending), differential rates of interest etc.
10. Excise Exemption Scheme.
11. Exemption under Direct Tax Laws.
12. Stamp duty and Octroi benefits.
13. Statutory support such as reservation and the Interest on Delayed Payments Act.
14. Subsidy on ISO Certifications.
15. Subsidy on NSIC Performance and Credit ratings.
16. Participation in Govt. Purchase registrations.
17. Registration with NSIC.
18. Counter Guarantee from Govt. of India through CGSTI.
19. Waiver in Earnest Money (Security Deposit) in Govt. tenders.
20. Stamp duty and Octroi benefits.
21. 15% weightage in price Preference.
22. Reduction in rate of Interest from banks (Subject to ratings).
23. Free of Cost Govt. tenders.
Eligibility criteria for MSME/SSI Registration
All classes of enterprises, whether Proprietorship, Hindu undivided family, Association of persons, Co-operative society, Partnership firm, Company or Undertaking, by whatever name called can apply for the registration and get qualified for the benefits provided under the Act.
For Enterprises engaged in the manufacture or production, processing or preservation of goods, the definition is as follows:
- Micro Enterprise: An enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
- Small Enterprise: An enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
- Medium Enterprise: An enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and other items as specified by the Ministry of Small Scale Industries.
For Enterprises engaged in providing or rendering of services, the definition is as follows:
- Micro Enterprise: An enterprise where the investment in equipment does not exceed Rs. 10 lakh.
- Small Enterprise: An enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
- Medium Enterprise: An enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
For more details, contact CS Neha Seth at 9871903449 or drop email at csnehaseth@gmail.com
MSME stands for micro, small and medium enterprises, and these are the backbone of any developing economy. To support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required. The registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt
BENEFITS OF MSME/SSI REGISTRATION
1. Easy finance availability from Banks, without collateral requirement.
2. Protection against delay in payment from Buyers and right of interest on delayed payment.
3. Preference in procuring Government tenders.
4. Stamp duty and Octroi benefits.
5. Concession in electricity bills.
6. Reservation policies to manufacturing / production sector enterprises.
7. Time-bound resolution of disputes with Buyers through conciliation and arbitration.
8. Reimbursement of ISO Certification Expenses.
9. Credit prescription (Priority sector lending), differential rates of interest etc.
10. Excise Exemption Scheme.
11. Exemption under Direct Tax Laws.
12. Stamp duty and Octroi benefits.
13. Statutory support such as reservation and the Interest on Delayed Payments Act.
14. Subsidy on ISO Certifications.
15. Subsidy on NSIC Performance and Credit ratings.
16. Participation in Govt. Purchase registrations.
17. Registration with NSIC.
18. Counter Guarantee from Govt. of India through CGSTI.
19. Waiver in Earnest Money (Security Deposit) in Govt. tenders.
20. Stamp duty and Octroi benefits.
21. 15% weightage in price Preference.
22. Reduction in rate of Interest from banks (Subject to ratings).
23. Free of Cost Govt. tenders.
Eligibility criteria for MSME/SSI Registration
All classes of enterprises, whether Proprietorship, Hindu undivided family, Association of persons, Co-operative society, Partnership firm, Company or Undertaking, by whatever name called can apply for the registration and get qualified for the benefits provided under the Act.
For Enterprises engaged in the manufacture or production, processing or preservation of goods, the definition is as follows:
- Micro Enterprise: An enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
- Small Enterprise: An enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
- Medium Enterprise: An enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and other items as specified by the Ministry of Small Scale Industries.
For Enterprises engaged in providing or rendering of services, the definition is as follows:
- Micro Enterprise: An enterprise where the investment in equipment does not exceed Rs. 10 lakh.
- Small Enterprise: An enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
- Medium Enterprise: An enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
For more details, contact CS Neha Seth at 9871903449 or drop email at csnehaseth@gmail.com
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