MSME stands for Micro, Small, and Medium Enterprises. It is categorized based on the turnover and Investment in Plant and Machinery. The entity has to generate MSME certificate registered with MSME department of the Central Government under MSME Development Act 2006.

Criteria for classification in MSME

Classification Micro Small Medium
Manufacturing and Services Investment < Rs. 1 Crore

And

Turnover < Rs. 5 Crores

 Investment < Rs. 10 Crores

And

Turnover < Rs. 50 Crores

 Investment < Rs. 20 Crores

And

Turnover < Rs. 100 Crores

Benefits of MSME

Protection against delayed payment

The MSME registration provides protections against delayed payments. When the buyers have purchased goods or procured services from MSME, they are liable to make the payment within 45 days, after which they have to make the payment with interest.

Avail 50% rebate on Trademark application

In case of Trademark application for Partnership firms, LLPs, Company, the government fee is higher as compared to the Individual applicants. So, to given them the benefits to the MSME, they are given 50% rebate in the Government fee for the application fee.

Subsidised rate of loans

The Government of India is promoting Ease of Doing Business in which the Banks are offering loans at subsidised rates to the MSME.

Documents required for MSME Registration

  • AADHAR card of the Authorised signatory of the Applicant

  • PAN Card of the Authorised signatory of the Applicant

  • Detail regarding the Entity of the Applicant like Investment in Plant and Machinery.