What is MSME?
MSME refers to Micro, Small and Medium Enterprise, such businesses determine the economic performance of a developing nation like India. MSME contributes 50% to exports in India and is the biggest employer providing employment to 45% of India's total industrial employment. MSME Act came into force in 2006. Any Manufacturer of Goods or Service Provider can register under MSME. Definition under MSMED Act 2006 laid down the following criteria:
MSME is determined on the basis of investment in plant and Machinery/Equipment as below:
Investment does not exceed 1 crores &
Turnover does not exceed 5 crores
Investment does not exceed 10 crores &
Turnover does not exceed 50 crores
Investment does not exceed 20 crores &
Turnover does not exceed 100 crores
Benefits for MSME
LOAN WITHOUT ANY COLLATERAL
Credit Guarantee Scheme (CGS) was launched by the Government of India to help the small businesses to procure loans without any collateral security. The eligible businesses can approach any scheduled commercial bank and selected regional banks.
LOWER RATE OF INTEREST
MSME businesses enjoy a lower rate of interest for Overdraft Facilities from some of the banks.
REDUCED ISO FEES
Micro & Small Enterprises (MSEs) are eligible for 75% of expenditure subject to a maximum of Rs.75,000/-. This scheme is available to those MSEs who have already acquired ISO-9000/ISO-14001/ HACCP certification. They can apply for
REDUCED TM FEES
Small Enterprises can avail the benefit of 50% subsidy in the cost of Trademark Registration.
INTEREST FREE LOAN TO DAIRY SECTOR
Under Scheme for Dairy Venture Capital Fund, Interest-free loan is provided by Banks for purchasing Milch animals
There are various schemes by state & central government for the benefits of MSMEs.
Some of the MSME schemes launched by government:
Udyog Aadhar Memorandum
Zero defect Zero effect
Quality management standards and Quality Management tools
Grievance monitoring system
Credit linked capital subsidy scheme
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Documents Required for MSME/Udyam Aadhar
Following documents needs to be submitted for TAN:
Aadhar Card of Applicant / Authorised Representative
Details Required for MSME/Udyam Aadhar
Name of Applicant
Address of Applicant
Email ID and Contact Number of Applicant
PAN Number of the applicant
Business Commencement Date
Nature of Business Activity
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