What is MSME registration

MSME registration is required for micro, small and medium enterprises to avail various benefits provided under the MSMED Act.

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail of the benefits under the MSMED Act from the Central or State Government and the Banking Sector, MSME Registration is required.

Here in this article lets understand in detail, what is MSME registration in detail.

What is MSME Registration

Micro, Small and Medium Enterprise is abbreviated as MSME. The Micro, Small and Medium Enterprise Development Registration Act (MSMED) came into existence in the year 2006. MSME registration certifies the enterprises to show them as Micro, Small or Medium Enterprise. The government has different schemes and tax benefits for each type of classification. Micro, Small and Medium sized enterprises in both the Manufacturing and Service sector can obtain MSME registration or SSI registration under the MSMED Act. Although getting MSME registration is not mandatory but it is always suggested to small and medium enterprises to get it done as it provides a variety of benefits.

 

  • Micro Enterprise

 

A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

 

  • Small Enterprise

 

A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

 

  • Medium Enterprise

 

A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

 

Here in this article, we have understood What is MSME registration, it will be surely useful for you to grow your business. If you’re wondering to get MSME registration online then you should visit the MSME registration portal and complete the MSME registration process in bliss.

Further business accounting needs can be taken care of by EZOTO Software – By Downloading this accounting app you would be able to manage invoice, accounting, credit, inventory, customers, etc and fulfill all your accounting needs.

 

Leave a Reply

Your email address will not be published. Required fields are marked *