The Micro, Small and Medium Enterprises are considered as a very significant piece of India’s legacy economic model and a part of the critical supply chain for products and services. This sector is the job creator as well as play a crucial role in providing large-scale employment and industrialization of rural and backward areas. In 2015-2016, according to the National Sample Survey (NSS) 73rd round, there were around 633.8 lakh unincorporated non-agriculture enterprises in the country which are dealing in different economic activities providing employment to 11.10 crore workers. Although getting MSME online registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.Every nation’s economic hopes are pinned on its young, small businesses. the Indian government, with this in mind, offers numerous benefits to such organisations so that they may achieve growth with less difficulty. To avail of these benefits, the organisations that qualify must get an MSME or SSI Registration (regulated by the MSMED Act), which is among the easiest of government registrations to be granted.
Importance of MSMEs in India
Micro, small and medium enterprises (MSMEs) power India, accounting for almost 40% of gross industrial value and 45% of total direct and indirect exports. Hence, the government has introduced various schemes and aids to ensure the MSME lead a struggle free existence in the country, and also contribute, to the Indian Economy. Some of these schemes have been initiated by the central government, while others are promoted by the state government. To avail of them, however, you need an Udyog Aadhar registration.
Registration Eligibility
Micro Enterprises: These are the smallest entities, of course. Micro manufacturing enterprises
have investment of less than Rs. 25 lakh in plant and machinery, while micro service enterprises
have less than Rs. 10 lakh invested in equipment.
Small Enterprises: Small manufacturing enterprises may have between Rs. 25 lakh and Rs. 5
crore invested in plant and machinery, while small service enterprises may have between Rs. 10
lakh and Rs. 2 crore invested in equipment.
Medium Enterprises: Medium manufacturing enterprises may have between Rs. 5 crore and
Rs. 10 crore invested in plant and machinery, while small service enterprises may have between
Rs. 2 crore and Rs. 5 crore invested in equipment.
For manufacturing entities, however, land and building cannot be counted toward the total
investment. Also, the original cost of the equipment and plant and machinery is taken into
account; depreciation cannot be factored in. Any business entity may apply, be it a partnership
or a company. Sole proprietors may also apply.
What are the benefits of registering?
The registration schemes have no statutory basis. The units normally get registered to avail of
some benefits. The incentives are funded either by the central or the state governments. The
system of incentives that are offered by the centre generally contain the following:
a. Priority sector lending or lower rate of interest
b. Excise exemption scheme
c. Exemption under direct tax laws
d. Statutory support such as the reservation and Interest on Delayed Payments Act.
e. The States/UTs offer their own package of facilities and incentives for the small scale
industries. They relate to the development of industrial estates, the tax subsidies, the power
tariff subsidies, the capital investment subsidies and other support. The centre and the state
both, whether under the law or otherwise, target their incentives and the support packages
normally to units registered with them.