The Micro, Small & Medium enterprises Act, 2006 provides provisions regarding Micro, small & medium enterprises. This is a central legislation hence governed by central government.
This sector is emerged as dynamic sector during recent times. Msme not only provides large amount of employment opportunities but also helps in industrialization of rural and backward regions.
For proper understanding of Micro small and medium enterprises we should know the criteria of these enterprises.
Enterprise engages in supply of goods:-
- Micro Industries: – It is an enterprise in which investment in plant and machinery does not exceed Rs 25 lakh.
- Small Industries: – It is an enterprise in which investment in plant and machinery is more than 25 lakh Rs but less than 5 crore.
- Medium Industries: – It is an enterprise in which investment in plant and Machinery is more than 5 crore.
Note: – Investment in plant and machinery is the original cost excluding land and building and the items specified by the ministry of Small scale industries.
Enterprise engages in supply of services:-
- Micro Industries: – It is an enterprise where the investment in equipment does not exceed Rs. 10 lakh.
- Small Industries: – It is an enterprise where the investment in equipment is more than Rs.10 lakh but not exceeding Rs.2 crore.
- Medium Industries: – It is an enterprise where the investment in equipment is more than Rs.2 Crore but not exceeding Rs.5 crore.
Benefits of MSME Registration:-
- Loans up to 1 Crore within 59 minutes through online portal.
- Interest subvention of 2 % of all Gst Registered MSME on fresh or incremental loans.
- All psu’s to compulsorily procure25% from MSME instead of 20% of their total purchase.
- 100 Technology centers to be established at the cost of Rs.6000 Crore.
- Govt of India to bear 70% of the cost for establishing Pharma Clusters.
- For minor violations under the companies act, entrepreneurs have to approach court but can correct them through simple procedures.
Documents and Other details required for MSME Registration:-
- Aadhaar Number.
- Name of the Owner.
- Name of the Enterprise.
- Type of Organization.
- Pan Number.
- Location of plant.
- Official Address.
- Bank Details.
- Major Business activity
- Persons employed.
- Investment in Plant & Machinery.
Documents required for MSME registration without aadhaar number:-
- Bank Photo Passbook or;
- Voter ID Card or;
- Passport or;
- Driving License or;
- Employee photo ID issued by the govt.