To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required. MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades.
On 13th may, 2020 Government of India announced some major relief to the MSMEs. And one of the major relief is that the Government Revised the definition of the MSMe as a whole.
Under the new definitions, the distinction between manufacturing and services enterprises has been eliminated and the investments have been revised upwards and an additional criteria of turnover has been introduced.
What is the new & Revised definition of MSMe?
The new definition of MSMe is as follows:
Micro Enterprise: Manufacturing and services enterprises with investments up toRs 1 crore and turnover up to Rs 5 crore will be classified as micro enterprises.
Small Enterprise: For small enterprises, the investment criteria and the turnover criteria has been revised upwards to Rs 10 crore and Rs 50 crore respectively.
Medium Enterprise:The enterprises which have investment up toRs 20 crore and turnover up to Rs 100 crorewill be termed as medium enterprises.
Table showing existing and revised definition of MSMe:
The new definition will benefit all the MSMes as they need not worry about growing in size; they will still be able to get quite a lot of benefits which otherwise, as an MSME, they have got.
This said new definition of MSMe is a welcome move for the promotion of the Atma Nirbhar Bharat Abhiyan by the Government of India.
Any Micro, Small and medium-sized enterprises in the manufacturing and service sector can obtain MSME Registration. MSME is used interchangeably with SSI, which stands for Small Scale Industries.
Though the MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for capital investment subsidies, lower rates of interest, tax subsidies, power tariff subsidies, and other support. You may also avail our e-Xpress service to obtain SSI registration / MSME registration within one working day.
Chithragupta.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Registering for SSI/MSME is easy, seamless, cheapest and quickest with Chithragupta !
Documents Required for SSI MSME Registration Quick Checklist
Scan photographs of all the Partners
Self-attested and color copy PAN Card of all the Partners
Self-attested and color copy ID Proof of all the Partners (Driving License/Passport/Voter ID)
Electricity Bill, Any other utility bill or Bank Statement for the address proof of the Registered Office (not older than 2 months)