Updated: May 28, 2020
INTRODUCTION & DEFINITION:
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 for the benefits of business units. Enterprises will come under category of Micro, Small & Medium based on their turnover & investment in Plant & Machinery. Earlier limit was different for Manufacturing & Service Industry but as per new amendments both sectors has been combined. Definition of Micro, Small & Medium enterprises are as follows:
Manufacturer & Service provider which includes all constitutions like Individual, Firm , Private Limited Companies etc . are allowed to apply for MSME registration. Only traders are not allowed for MSME registration.
Ø Collateral free loan & cheap loan Ø 1% less interest on OD Ø Easier & cheaper licenses Ø MSME special tenders Ø Upto 50% off on patents Ø Protection on delayed payments (Receivables within 15 to 45 days else interest will be charged on receivables) Ø Cheaper Electricity Ø Subsidies for export Ø Few schemes like training facility, women entrepreneurship , grievance system, credit linked subsidy scheme, funding for innovative ideas etc
Ø MAT carry forward for 15 years instead of 10 years
DOCUMENTS REQUIRED :
Ø Aadhar card
Ø PAN card
Ø Rent agreement
Ø Property paper
Ø Cancelled cheque
Ø Company registration certificate
MSME registration is valid for indefinite period as long as the business is running. There is no need of renewal of MSME.
Call us for MSME Registration and to consult on all the benefits available to an MSME and how to avail it.