Msme registration are an important aspect of india heritage economic model and a vital component of the product and service supply chain. This sector is the job creator as well as play a crucial role in providing large scale employment and industrialization of rural and backward area.
Although msme registration online is not required it is usually recommended to small and medium enterprise since it give a number of advantage. Benefit such as loan rate charged would be substantially lower as would tax break and capital investment tax break and other government assistance.
We can assist your company in obtaining msme registration online so that you may take advantage of a variety of perk. We provide msme registration and small scale industry online registration service in delhi ncr, mumbai, bangalore as well as chennai and other indian city.
What is the difference between msme registration and small scale industry?
Msme was first launched in india in 2006. Actually several service sector that were not previously covered in this sector were now included in the definition of msme registration making this act a historic development. As a result harnessing the sector potential the government has made msme registration online and paperless.
Priority sector loan as well as electricity tariff subsidy and capital investment subsidy and excise as well as direct tax exemption are all advantage of msme registration. The following are the requirement that must be met in order to qualify under the micro, small and medium enterprise act.
Micro, small and medium enterprise status is granted to any manufacturing enterprise that have spent less than ten crore on machinery and equipment.
Plant and machinery investment in service enterprise should not exceed 5 crore.
In the not too distant future if your business surpass the maximum limit it will no longer be classified as an micro, small and medium enterprise.https://huffingtonmedia.com/udyam-registration/
What are the different type of micro, small and medium sized enterprise ?
There are three categories of micro, small and medium enterprise as well as small scale industry that may be categorized as follow.
Micro enterprise.
Of course micro enterprise are the tiniest of enterprise. Micro manufacturing enterprise must invest less than rupees 25 lakh in plant and machinery whereas micro service enterprise must invest no more than rupees 10 lakh.
Small enterprise.
Small manufacturing enterprise should invest between rupees 25 lakh and rupees 5 crore in plant and equipment whereas small service enterprise should invest between rupees 10 lakh and rupees 2 crore in plant and machinery.
Medium sized enterprise.
Medium manufacturing enterprise should invest between rupees 5 crore and rupees 10 crore in plant and machinery whereas small service enterprise should invest between rupees 2 crore and rupees 5 crore.
Micro, small and medium enterprise registration benefit.
Small enterprise can profit from small scale industry registration in a variety of way.
Cheaper bank loan. Compared to conventional business lo
an interest the rate of interest on loan given to micro, small and medium enterprise is 1 per cent to 1.5 per cent cheaper.
Prime minister modi has established the mudra loan program which offer loan to micro, small and medium enterprise and small scale industry without the need for collateral.
Faster approval from state and federal government agency. Micro, small and medium registered enterprise are given priority when it come to government license and certification.
Tax break. Micro, small and medium enterprise firm are eligible for a variety of income tax and capital gain tax break from the government.
Infrastructure is less expensive for micro, small and medium enterprise registered enterprise which include thing like power and value added tax exemption. Other commercial service like patent are similarly less expensive for small medium enterprise.
Tender access. There are a number of government bid that are solely accessible to micro, small and medium enterprise in order to encourage small company involvement in india.
What role does micro, small and medium enterprise play in obtaining a bank loan?
Micro, small and medium enterprise are recognized by all bank and organization. Special scheme are also being developed to recognize them. Bank prefer to lend to micro, small and medium enterprise rather than larger enterprise. In the case of micro, small and medium enterprise the chance of receiving a sanctioned loan are significantly higher. The interest rate on bank loan will also be reduced. In the event of a repayment delay there may be preferential treatment.
