Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. The existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below: Further, MSMEs are classified in two categories, such as manufacturing enterprises and service enterprises.
|Investment||Rs.1 crore||Rs.10 crore||Rs.50 crore|
|Annual Turnover||Rs.5 crore||Rs.50 crore||Rs.250 crore|
Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
There are various tax rebates offered to MSME.
It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
There are many government tenders which are only open to the MSME Industries.
They get easy access to credit.
Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
Business registered under MSME are given higher preference for government license and certification.
There is a One Time Settlement Fee for non-paid amounts of MSME.
The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.
Business Address Proof
Copies of Sale Bill and Purchase Bill
Partnership Deed/ MoA and AoA
Copy of Licenses and Bills of Machinery Purchased