Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly important, as it enables these enterprises in availing benefits from various government-initiated schemes. MSMEs are classified in two categories, such as manufacturing and service enterprises
MSME are classified into two categories, named Manufacturing and Service enterprises. The criteria defined in terms of investment in plant and machinery/equipment is listed below:
|Manufacturing Enterprises||Does not exceed Rs. 25 lakhs||More than Rs. 25 lakh & Less than Rs. 5 crores||More than Rs. 5 crore & Less than Rs. 10 crores|
|Service Enterprises||Does not exceed Rs. 10 lakhs||More than Rs. 10 lakh & Less than Rs. 2 crores||More than Rs 2 crore & Less than Rs. 5 crores|
Other benefits of MSME / SSI registration for small businesses:
Some of the MSME schemes launched by the Government are
Aadhaar card is a 12 digit number given to all individuals by the government. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Registration can be done both ways in the online mode or the offline mode.
In this model, goods that are manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India. To achieve this the government has launched this scheme. In this, if the goods are exported these are eligible for some rebates and concessions.
Registering in this scheme will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology. In this scheme, activities are conducted to sensitize the businesses about the new technology available through various seminars, campaigns, activities etc.
Registering under this scheme is beneficial in terms of getting the complaints of the business owners addressed. In this, the business owners can check the status of their complaints, open them if they are not satisfied with the outcomes
This scheme helps innovators with the implementation of their new design, ideas or products. Under this from 75% to 80% of the project cost can be financed by the government. This scheme promotes new ideas, designs, products etc.
Under this scheme, new technology is provided to the business owners to replace their old and obsolete technology. The capital subsidy is given to the business to upgrade and have better means to do their business. These small, micro and medium enterprises can directly approach the banks for these subsidies.
This scheme is especially started for women who want to start their own business. The government provides capital, counseling, training and delivery techniques to these women so that they manage their business and expand it.
1.38 lakh projects have been set up by the women entrepreneurs under Prime Minister’s Employment Generation Program(PMEGP) Scheme since inception and up to 23.01.2019. The projects set up by women entrepreneurs are about 30% of total projects set up under PMEGP. the scheme, women entrepreneurs are covered under Special Category and are entitled to 25% and 35% subsidies for the project set up in urban and rural areas respectively. For women beneficiaries, own contribution is only 5% of the project cost while for general category it is 10%.