MSME Registration Benefits

MSME Registration Benefits

MSME stands for micro, small and medium enterprises, and these are the backbone of any developing economy. To support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.

MSME Registration

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. MSME Enterprises are typically more labour intensive than large corporates and provide tremendous employment potential at a very low capital cost. MSME also share a major portion of industrial production and exports in India and play a pivotal role in the development of industrial economy.
Therefore, to promote and develop MSMEs; the MSMED Act of India facilitates promotion and development of enterprises through many incentives, schemes and subsidies. To obtain the benefits under MSMED Act, MSME Registration is a must and proprietorship firms, partnership firms, LLPs, Private Limited Company’s and Public Limited Companies can register.

BENEFITS OF MSME REGISTRATION

The MSME registration is not statutory. However, the MSME registration process in India has been conceptualized to provide maximum benefits to all types of enterprises. After registration, any enterprise becomes qualified to reap the benefits offered under the MSMED Act. Some of the benefits from Central Government include easy sanction of bank loans (Priority sector lending), lower rates of interest, excise exemption scheme, exemption under Direct Tax Laws and  statutory support such as reservation and the interest on Delayed Payments Act.
State Government and Union Territories also have complied their own package of facilities and incentives for MSMEs. Some of the benefits provided by State Govenement for MSMEs include development of specialized industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.
Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word MSME in their exemption notifications. Therefore, the registration certificate issued by the registering authority is seen as proof of being MSME and is required to avail the benefits sanctioned for MSMEs.

MSME Definition

For Enterprises engaged in the manufacture or production, processing or preservation of goods, the definition is as follows:
  • Micro Enterprise: An enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
  • Small Enterprise: An enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
  • Medium Enterprise:  An enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and other items as specified by the Ministry of Small Scale Industries.

For Enterprises engaged in providing or rendering of services, the definition is as follows:
  • Micro Enterprise: An enterprise where the investment in equipment does not exceed Rs. 10 lakh.
  • Small Enterprise: An enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
  • Medium Enterprise: An enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
  • AIM OF MSME IN KARNATAKA

    • To Impart greater vitality and growth impetus to the small, tiny and village enterprises, in terms of output, employment, exports and installing a competitive culture based on heightened techno- managerial awareness.
    • To Popularize entrepreneurship among our youth & to motivate them to adopt it as their carrier then searching for employment.
    • To impart confidence to individuals in managing their ventures.

    MSME MAIN ACTIVITIES IN THE STATE OF KARNATAKA

    • Assistance/Consultancy rendered to existing units
    • Preparation of State Industrial Profiles
    • Preparation/Updation of District Industrial Potential Surveys
    • Conducting Market Surveys
    • Collection of Production Index Statistics
    • Preparation of Project Profiles
    • Organizing industrial awareness cum motivational Campaigns
    • Organizing Entrepreneurship Development Programmes
    • Organizing Management Development Programmes
    • Organizing Skill Development Programmes
    • Promote and encourage Energy Conservation
    • To encourage Pollution Control activities
    • Promote and encourage Quality Control and technology Upgradation
    • Promote and encourage Export Promotion
    • Promote and encourage Vendor Development and Sub contracting
    • Provide Common Facility Workshop/Laboratories
    • Preparation of Directory of Specific Industry
    • Intensive Technical Assistance
    • Co-ordination with DICs & other industrial development institutions & agencies in the state
    • Linkage with State Govt. Functionaries

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Advertisements