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The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is given below.
A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh, for micro service less than Rs. 10 lakh
A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore, for small service between Rs. 10 lakh to Rs 2 Crore.
A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore, for medium service between Rs 2 core to Rs. 5 crore.
Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under the MSME Act. It gives you an identity as it is a certificate provided by the Government of India and will save you from a lot of inconveniences later on. You can apply for MSME easily through the Government’s online portal of udyogaadharMCA
As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs usually get this done to utilize the advantages offered under it. The registration process is quite easy and simple. You can easily avail it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations.MCA
• Government tenders.
• Government tenders.
• Import subsidy .
• Ease in getting Approvals & Registrations.
• Lower interest rates.
• Tariff & Non-tariff tax subsidies.
• Direct tax exemptions.
• Benefits associated with government schemes.
• credit availability from the government.
MSMEs are recognized by all the institutions and banks. Special schemes are drafted to recognize them as well. Banks prefer MSMEs instead of normal enterprises to lend loans. The possibility of getting a sanctioned loan is much higher in a case of MSME. Bank loan interest rates will also be lower. There may also be preferential treatment in case of delay in repayment.
Government of India does not charge any fees for MSME registration under the MSME Act, 2006. But there are some technicalities associated with it, so it is always advisable to consult a MSME expert. We at CAONWEB, have a full fleet of MSME experts who will look forward to all your queries.
Once you have resgistered your company under MSME by following the process mentioned above, you will receive a UAM No. which will be unique for your organisation.
Follow the below mentioned instruction to check your MSME status.
Check MSME registration status by following the steps:
1. click on the link and visit the website (https://udyogaadhaar.gov.in/UA/UA_VerifyUAM.aspx)
2. Enter 12 digit UAM No.
3. Enter Verification Code.
4. Click on Verify Button.