MSME REGISTRATION AND ADVANTAGES

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With the advent of Indian youth skewed towards startups and the existence of MSMEs since 2001, the things are getting more organized and advanced. Being a young nation, India is turning out to be an overtly transforming nation. The government too is shy no more in introducing beneficial schemes for supporting MSMEs to exist and grow swiftly.

The Ministry of MSME too is working firmly to encourage MSM Enterprises engaged in the manufacturing and production, and processing or preservation of goods to realize entrepreneurs that starting up doesn't cost an arm and a leg anymore.

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Understanding MSME as per the Law: The Government of India has devised the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. In legal terms, the definition of micro, small and medium enterprises can be best understood as

Enterprise Category

Investment in Plant & Machinery

(Manufacturing & Production Industry)

Investment in Equipment

(Service Industry)

Micro

The investment in plant and machinery does not exceed Rs. 25 lakh

The investment in plant and machinery does not exceed Rs. 10 lakh

Small

The investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.

The investment in plant and machinery is more than Rs. 10 lakh but does not exceed Rs. 2 crore.

Medium

The investment in plant and machinery is more than 5 crore but does not exceed Rs. 10 crore

The investment in plant and machinery is more than 5 crore but does not exceed Rs. 10 crore

 

 

 

What all it requires to be registered as MSME?

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It is an online process that requires your Aadhar number to get it certified. One can avail the certificate online without any need of the physical copy. Moreover, the process is simplified even further for the enterprises having the MSME Certificate to obtain licenses, approvals and registrations in any field for their business from their respective authorities. Such that they can produce the Certificate of MSME Registration while making an application itself. Not just that, applicants can reimburse the ISO Certificate Expenses by making an application to the respective authority supported by MSME Certificates. 

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What are the benefits of getting registered?

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There are many; from priority lending to cluster financing with encouraging bank loans, and an opportunity to adopt latest quality management standards.Let's have a look at them one by one

 

All new industrial units having MSME Registration and expansions are exempted from payment of Stamp Duty and Registration fees and Direct Tax Exemption in the initial year of business 

Propitious subsidies

• Your enterprise may avail Bar Code Registration subsidy - 50% subsidy for the patent registration by making application to its respective authority; also for Trademark registration for selected category.

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• Subsidy on the expenditure for obtaining product certification licenses from National/International standardization bodies. Under this Activity, a subsidy to an extent of 75% of the actual expenditure is granted towards licensing of the product to National/International Standards. The maximum GOI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing/marking to National Standards and Rs. 2.0 lakh for obtaining product licensing/marking to International standards.

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