For Small Business, Government bring with MSME Registration to provide benefits and give incentives to promote Entrepreneurship. Also by taking MSME (Micro, Small and Medium Enterprises) Registation under the Act , the small business can get loans at cheaper rate of Interest. MSME Registration also known as Udyog Aadhaar Registration.
Government of India to promote, protect the Interest of the MSMEs and to incentivise MSMEs introduced Micro, Small and Medium Enterprises Development Act, 2006.
What are MSME Enterprises?
MSME enterprises of manufacturing sectors can be categorized on the basis of amount of investment in plant and machinery –
1.Micro enterprises– Entities investing less than ₹ 25 lakhs in plant and machinery
2. Small enterprises– Entities investing between ₹ 25 lakhs and ₹ 5 crores in plant and machinery
3. Medium enterprises– Entities investing between ₹ 5 crores and ₹ 10 crores in plant and machinery
MSME enterprises in the service sector can be categorized on the basis of amount of investment in equipment-
1. Micro enterprises– Entities investing less than ₹ 10 lakhs
2. Small enterprises– Entities investing more than ₹ 10 lakhs but less than ₹ 2 crores
3. Medium enterprises– Entities investing ₹ 2 crores but less than ₹ 5 crores.
Following are the benefits to the MSME Registration in India:-
1. Easy access of Bank Funds
2. Eligible to get Colletral Free Loan
3. Lower rate of Interest
4. Electricity at Conessional rate / Power Tariff Subsidy