MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. Any company in Manufacturing and Service Line can obtain registration. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this since it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. Our team at J&P understands the need and is well-versed with the procedure and the requirements. We keep ourselves updated on all the amendments to the schemes, we take responsibility of the registrations from start till end.
With effect from 01/07/2020 onwards under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufacturing and the services sectors under the MSME definition has been removed. This removal will create parity between the sectors. The following is the revised MSME classification, where the investment and annual turnover, both are to be considered for deciding an MSME.
|REVISED MSME CLASSIFICATION|
< Rs.1 crore
< Rs.5 crore
< Rs.10 crore
< Rs.50 crore
< Rs.50 crore
< Rs.250 crore
BENEFITS OF MSME REGISTRATION:
- Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around- 1 to 1.5%. Much lower than interest on regular loans.
- There are various tax rebates offered to MSME.
- It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- There are many government tenders which are only open to the MSME Industries.
- They get easy access to credit.
- Once registered, the cost of obtaining patent rights, or the cost of setting up the industry reduces as many rebates and concessions are available.
- Businesses registered under MSME are given higher preference for government license and certification.
- There is a One Time Settlement Fee for non-paid amounts of MSME.
- Business Address Proof
- Copies of Sale Bill and Purchase Bill
- Partnership Deed/ MOA and AOA
- Copies of Business Licenses and Purchase Bill of Machinery (depends on the business type and investment)