MSME stands for Micro, Small & Medium Enterprises. However the definitions of these enterprises can vary according to manufacturing or service sector. For manufacturing sector, micro enterprises are those whose turnover does not exceed 25 lakh rupees, small enterprises are those whose turnover is between 25 lakhs and 5 crore rupees & medium enterprises are those which have turnover between 5 Crore and 10 Crore rupees.
For the service sector, micro enterprises are those whose turnover does not exceed 10 lakh rupees, small enterprises are those whose turnover lies between 10 lakh rupees & 2 crore rupees & medium enterprises have their turnover between 2 crore rupees and 5 crore rupees. Under MSME registration as well, various other registrations are required such as Service Tax Registration or VAT registration.
MSME registration certifies the enterprises to show them as micro, small or medium enterprise. Government have different schemes and tax benefits for each type of classification. To avail the benefits MSME registration is mandatory. For MSME registration enterprise must enrol their name under the MSMED act, 2006.
a. Sole proprietorships
b. Partnership firms
d. Private limited companies
The MSMED Act divides the MSMEs into two categories:
a. Enterprises engaged in manufacturing or production
b. Enterprises engaged in providing services.
Cheaper bank loans
Easy access to credit
Access to tenders
Quicker approvals from state and central government bodies
MSME registration is not yet made mandatory by the government but it is beneficial to get one's business registered under this because it provides a lot of benefits in terms of taxation, credit facilities, loans etc.
No, the MSME registration process is a complete online process.
MSME registration is first provided as a provisional registration certificate with a validity of 5 years. Once the unit has commenced production, a permanent registration certificate is issued which is valid for the lifetime of the entity.