MSME is the micro, small, and medium enterprise. Important for the economy like a backbone, it helps in the growth of the economy of the enterprises and in order to support it, the government promotes under the MSMED Act, the subsidies, the different ways of growing the economy of the enterprise also in the form of incentives also. To take the advantages of the benefits offered under the Act of the MSMED, the company has to register themselves with the respected department.
The benefits those come under the MSME registration:
- The priority sector lending.
- The tariff subsidies.
- Capital investment subsidies.
- Excise and direct tax exemption.
There are three types of MSME/SSI Registration
- Micro enterprise
As the name defines, the micro enterprises are the smallest companies. In the micro manufacturing enterprise, the investments uses to be below twenty-five lakhs (25) in the plant and machinery, and in the micro service enterprise, the investment should be either ten lakhs or below it.
- Small Enterprise
In the small enterprise, the manufacturing enterprise, in the plant and machinery, the investment should be in between twenty-five lakhs and six-Crore, and in the small service enterprise the range uses to be between ten-lakhs and two-Crore.
- Medium Enterprise
In the medium enterprise, the range of the investments in the plant and the machinery manufacturing uses to be Five-Crore to ten-Crore and for the service enterprise it uses to be in between the range of two-Crore to five-Crore.
Advantages of the MSME Registration
- Much cheaper Loan interest as compared to the business loans, around 1-1.5 percent.
- Easy approval from the government you will get if you have applied for any license only then when your enterprise is registered under MEME.
- The main advantage of MEME registration the enterprise, either manufacturing or service can take off is the Tax Refund or Rebates, in which they get the benefit of multiple income taxes and the capital gains.
- The other best part of being registered under the MEME is that you get easy access to apply for those tenders that are only are meant to access by the MEME registered enterprises.
- For the industries that are registered under the MEME are given the cheaper facility regarding the electricity, Value Added Tax.
- Under the scheme of Mudra loan introduced by the prime minister, Mr. Narendra Modi, that the MEME can get the loan after applying without any security of the repayment of the loan.