Micro, Small and Medium Enterprises (MSME) Registration and its Benefits

Micro, Small and Medium Enterprises (MSME) Registration and its Benefits

In this growing economy like india, there are ample opportunities for new enterprises and organisations to establish and grow. There is also a wide open market for Indian exporter and traders. Indian products and services have huge demand due to quality, price and high export standards.

The government has also taken its lead in the development, establishment and nurturing of budding entrepreneurs and young minds. MSME Certification is one of its initiative to provide support, opportunity and priority recognition to new work-force and business minds.

In this blog I will tell you in very simple and easy to undersand language about MSME (Micro, Small and Medium Enterprises), MSME Certificate Registration and MSME Benefits. But before stating anything, lets first know what is MSME.

What is MSME ?

As a part of Aatmanirbhar Bharat Abhiyaan announced by Respected Prime Minister Shri Narendra Modi ji on 12th May 2020, Finance Minister Nirmala Sitharaman on 13th May 2020 announced revisions in the definition of Micro Small and Medium Enterprises (MSME). Earlier, the MSMEs were defined on the basis of investments now will also include turnover of the company.

1. MSME categorization will be on the basis of investment and turnover together.

2. Now no more difference in classification of manufacturing and service enterprises. Both manufacturing and service enterprises will be under same class.

3.   Necessary amendment in the law will be bought soon.

Revised MSME Classification 

The revised classification of MSME (Micro small and Medium Enterprises) will be on the basis of Investment along with the Turnover of the concern. Now there will not be any distinction for the classification in between Manufacturing Concern and Service Provider Concerns. The classification is still in three (3) categories i.e. Micro, Small, Medium enterprises.

MICRO - A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 1 Crore and Turnover does not exceed Rs. 5 Crore;

SMALL - A small enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 Crore and Turnover does not exceed Rs. 50 Crore;

MEDIUM - A medium enterprise is an enterprise where the investment in equipment does not exceed Rs. 20 Crore and Turnover does not exceed Rs. 100 Crore;

Note : For reference, the Existing MSME Classification is also provided under strikeout fonts.

The Government of India (GOI) 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 as under :

Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below :-
A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 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;
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.

In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide
its notification No.S.O.1722(E) dated October 5, 2006 .


Enterprises engaged in providing or rendering of services and whose investment in equipment (Original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below :-
A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore;
A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.


Its sounds to be a little complicated, let us understand it with the help of this flow chart below :

The government is providing various assistance, facilities and training to MSME Units having "MSME Certificate" as registered with the Union Ministry of Micro, Small and Medium Enterprises. The Government of India (GOI), Union Ministry of Micro, Small and Medium Enterprises, Reserve Bank of India (RBI), SIDBI (Small Industrial Development Bank of India) and other statutory bodies by implying various policies and regulations are providing various benefits and support to MSMEs. The Government of India (GOI), Union Ministry of Micro, Small and Medium Enterprises, Reserve Bank of India (RBI) has implemented various regulations and governance policies for the banks and financial institutions to generate easy, lucid and rapid finance and other services for MSME. The Union Ministry of Micro, Small and Medium Enterprises has established various "Training Center" and "MSME Facilitation Centers" for people and enterprises having MSME registration in many cities as well as at district levels. These "Training Center" and "MSME Facilitation Centers" provide trainings and MSME Scheme related facilities to MSME's.

How to avail the benefits of MSME Registration ?

One need to register himself or his enterprises as "MSME" under the "Ministry of Micro, Small and Medium Enterprises". The registration for "MSME" can be obtained via any Professional Consultant very easily (like a Service Provider, CA Firm, CS Firm and Legal Professionals), you just need to provide them required documents and rest they will perform from their end. There are various categories of MSME under which registration certificate is issued, like C,D,E etc. These categories are provided by the department itself on the basis of the details provided at the time of registration and on the basis of other records likes past performance, investment, location etc.

But in order to avail the benefits there should have adequate knowledge, proper communication and timely action. For this follow the following steps :-

Step 1 : Get MSME Registration. One can get a MSME registration with the help of the Financial Consultant (like a Service Provider, CA Firm, CS Firm and Legal Professionals) providing this service or from the "MSME Facilitation Centers" of your area.

Step 2 : Visit SIDBI (Small Industries Development Bank of India), MSME Facilitated Centers under the aegis of Union Ministry of Micro, Small and Medium Enterprises or their website to know about the variour schemes running.

Step 3 :   1. Always avail any registration or loan facilities under MSME Categories.

             2. Do not forget to mention to the respective department or bank that, "YOU   HAVE MSME CERTIFICATE".

               3. At the time of paying any statutory due or fee always enquiry about MSME Concessions, waivers or benefits. Mention your MSME Registration and attach copy of your certificate if allowed.

  

Benefits of MSME Registration

There are many benefits of MSME Registration. In other words we can say that MSME Registration provides you the entitlement for MSME benefits. some of them are discussed below :

BENEFITS OF MSME

 

1. Providing Training

The Union Ministry of Micro, Small and Medium Enterprises has established various technology center and other training centers for providing tech training and other skill development training to people to generate employment and self employed entrepreneurs. These centers either by their own or through MOU (Memorandum of Undertaking) with Institutions, provide training to MSME Registered youth. Below news is the supporting for this imitative of a Tech Center under MSME. 

Source : The Times of India dt. 02/11/2019

 

2. Sectoral and Priority Financing 

There is special sectoral and priority financing to the MSME's. These loan are provided by SIDBI (Small Industrial Development Bank of India). Sectoral Financing means financing to the specific sector i.e. MSME sector enterprises.

3. Bank loan without collateral  

The Government of India (GOI) has assigned the Union Ministry of Micro, Small and Medium Enterprises and the SIDBI (Small Industrial Development Bank of India) to trigger this task. The Union Ministry of Micro, Small and Medium Enterprises and the SIDBI (Small Industrial Development Bank of India) established a Trust named "Credit Guarantee Fund Trust for Micro and small Enterprises (CGTMSE) specifically to implement credit guarantee fund scheme for the MSME's. Under this scheme loans are provided collateral Free.

4. Waiver of Stamp Duty

The state government as per their state policy (differ from state to state) has developed norms for MSME's to waive off the stamp duty payable by MSME units for any of their business related transactions like purchase of land etc. The stamp duty waiver starts from 25% (differ from state to state) of the actual chargeable duty. For availing the waiver one must have MSME Certificate.

5. Subsidy on Patent Registration

Subsidy is given to the MSME Enterprises for the patent registration by the Ministry of Micro, Small and Medium Enterprises. For this application is to be made to the respective ministry. The subsidy starts from 50%, subject to conditions.

6. Special Banking Facilities by Banks

The GOI and RBI has lain down varies norms, regulation and provisions over the banking & financial institutions for providing specific denomination & percentage of its financing capacity to MSME units. This helps MSME's to get better finance from various banks and financial institutions. And as the banks are mandate to comply with the norms to finance MSMEs, they robustly look for MSME to provide loan and financial services. MSME get low interest rate loans and charges waiver. The interest concession differ from bank to bank. Like MSME can avail a benefit of 1% reduction over the overdraft (differ from bank to bank).

 

7. Industrial Promotion Subsidy Eligibility  

MSME's are also eligible for Industrial Promotion Subsidy for Industrial Promotion as suggested by the Government.

8. Concessional Electricity Rate

There are various state government schemes under which, they provide electricity connection and supply to MSME at concessional charges and rates. It differs from state to state as per their policy. This concession is available to all the Enterprises that have the MSME Registration Certificate, by providing an application in the respective manner (As per scheme) to the Electricity Department/Board along with the copy of MSME Registration Certificate.

9. Income Tax Benefits

There are many exemptions, deductions and other benefits available to MSME Units. Presumptive basis of taxation (depending on eligibility) can be considered as one of it. Export without payment of GST by executing a LUT (letter of Undertaking) in Form GST RFD – 11 (Circular No. 40/14/2018-GST) online is very easily allowed to MSME Unit.

10. Export Support and Market Visibility

GOI (Government of India) has made Export registration easy. It also provides easy export facilities to MSME Unit. They provide subsidies, tax exemption, and technical support as well to MSME Units. GOI organizes several exchange programs, craft fairs, exhibitions, and trade-related events internationally for MSME Enterprises to get international clients and business.Below is a news exact from a website showing the same.

This is a all about MSME, MSME Registration and its benefits. These are a few amongst many. Any comment and suggestion is most welcome. Share with your friends and family. For any query or assistance, feel free to comment.

Disclaimer :

The above blog is purely for educational and  guidance purpose. It's just the reflection of the author's personal experience and judgment. The author has just provided the general information & understanding and its not at all an alternative of any legal advice or practitioner. It has no connection with the websites mentioned in its contents. The content stated in the blog should be used by the reader at his own discretion and sole responsibility. The content of the blog can be only used for any other document, write-up, article, blog and any written or printed material whether on paper or digitally in any form, with the prior permission of the author.

 

बाबु जी की आखिर सहेली

जिंदगी की भाग दौड़ में कब अपने दूर चले जाते है पता ही नहीं चलता। मेरा नाम केशव है और आज मेरे पिता जी का निधन हो गया। पिता जी को मैं प्यार से "बाबु जी" बुलाता था। मेरे बाबु जी एक रिटायर्ड प्रोफेसर थे और उम्र के सत्तरवें (७०) साल में थे। मेरी माता जी का निधन ५ (पांच) साल पहले ही हो गया था ,तब से बाबु जी अपने परम मित्र घनशयाम चाचा के सहारे थे पर उम्र के साथ वह भी चले गए। मैं और मेरी पत्नी नौकरी पेशा है और अपने परिवार की भौतिक जरूरतों को पूरा करने में दिन बेता देते है। मेरे परिवार में केवल तीन (३) लोग थे कल तक; बाबु जी, मैं और मेरी पत्नी राधा । हमने अभी तक संतान नहीं की क्यों की वक़्त और पैसे दोनों कम थे।

बाबु जी उम्र के इस पड़ाव में भी एक मिलनसर और ज़िंदादिल व्यक्ति थे। माँ और घनशायम चाचा के जाने के बाद वह अकेले थे पर जब भी किसी से मिलते, तुरंत घुलमिल जाते थे। कहते है एक बच्चे और बूढ़े में कोई अंतर नहीं होता, ये उन्हें देख कर साफ़ समझ आता था। हर उम्र के लोगो से दोस्ती कर लेते थे। शिक्षा के क्षेत्र से होने के कारण उनको ज्ञान और अनुभव दोनों ही बहुत था, काफी छात्र (स्टूडेंट्स) अक्सर उनसे मिलने और परामर्श लेने आते रहते थे। बाबु जी रोज़ सवेरे और शाम पार्क में टहलनें जाते थे और अक्सर वही स्टूडेंट्स से मिलने थे।

कुछ तीन (३) महीने पहले बाबु जी को पार्क में एक लड़की मिली, उसने बताया की वह सिविल परीक्षा की तैयारी कर रही है।  वह लड़की रोज़ बाबु जी से पार्क में मिलती और अलग अलग विषयो पर चर्चा करती। उसने बताया था की वह पास के गाँव के एक गरीब परिवार से है और शहर में कोचिंग के लिए आयी है। बाबू जी उसे हर तरह का मार्गदर्शन देते रहते थे। समय के साथ वह बाबू जी की प्रिय छात्रा और मित्र दोनों बन गयी थी। वह एक-दो बार घर भी आयी थी, और हम ये देख कर खुश थे की बाबू जी को समय काटने और बात करने के लिए कोई मिल गया था। "और नहीं तो क्या", हमारे पास वक़्त कहा था और वह एक स्टूडेंट ही तो थी। मैंने और राधा ने ध्यान से कभी उसे देखा भी नहीं था। ये कोई नई बात नहीं थी की कोई स्टूडेंट बाबू जी के साथ मिल-झूल रहा था। बाबू जी उसकी पढाई के लिए लगन देख बहुत प्रभावित थे। हम लोग यहाँ अपने काम में  मशरूफ थे और बाबू जी उसे पढ़ने में। समय अपनी गाती से चल रहा था। मेरी पत्नी अब उसे "बाबू जी की सहेली" बुलाती थी।

एक (१) महीने पहले बाबु जी सुबह पार्क से बहुत उदास घर आये। राधा ने कारण पुछा तोह कुछ जवाब ही नहीं दिया और कमरे में जा कर लेट गए। जब मैं रात में दफ़्तर से घर आया तो उसने मुझे ये सब बताया। तीनो रात में खाने की मीज पर साथ बैठे पर जाने क्यों एक अजीब बेचैनी थी बाबु जी के चेहरे पर, जैसे क्या खो गया हो। मैंने बाबू जी से पूछा "क्या होआ बाबु जी", वो बोले "सीमा दो (२) हफ्तो से मिलने नहीं आयी। मैं और राधा असमंजस में पड़ गए, "कौन है ये सीमा"। हमने बाबु जी की ओर संकोच से देखा, वो बोले "मेरी स्टूडेंट"। राधा ने हस्स कर बोला "आपकी सहेली", बाबू जी ने सिर हिलाया। हम दोनों ने बोला "आजाऐगी बाबु जी", और खाना खाने में लग गये, बाबु जी से उनकी चिंता का कारण पूछना याद ही नहीं रहा।

दो हफ्ते बाद, बाबू जी शाम की सैर से लौटे ही नहीं; रात के दस (१०) बज गए। मैं और राधा उनका इंतजार करते बैठे थे। वो आये और उदास सोफे पर बैठ गए। हम कुछ पूछते उससे पहले ही वो बोल पड़े, "वह सीमा एक ठग थी और मेरे दो लाख रूपए  ले कर भाग गयी। उसने बोला था उसके पिता जी का एक्सीडेंट हो गया है और ईलाज के लिए दो (२) लाख चाहिए। इन्शुरन्स कंपनी जब क्लेम देगी तो पैसे वापस कर देगी।  आज मैं उनके मकान पर गया तो पता चला वो भाग गयी है। मकान मालिक ने बताया की दो (२) महीने का किराया भी नहीं दिया। पुलिस थाने गया तो पता चला वह एक ठग थी और कई लोगो को अपनी बातो में फ़सा कर लाखो ठगे है उसने। सब को एक अलग नाम और कहानी सुना कर ठगा है उसने"।

मैंने गुस्से में बोला, "आप एक बार पूछ तो लेते"। वो बोले "जिंदगी में एक बार जरूर इंसान को उसका तजुर्बा धोखा दे देता है, मुझे भी दे गया। माफ़ करना बेटा पर तुम लोगो का वक़्त नहीं लेना चाहता था इसलिये पूछा नहीं"। ये कह कर वो अपने कमरे में चले गए। अब मैं और राधा एक अत्म गिलानी में चले गए थे, बाबु जी से बात करने का वक़्त ही नहीं था कभी हमारे पास, कितना अकेला कर दिया था हमने उन्हें।

कुछ देर बाद उन्होंने अपने कमरे से आवाज दी, "चलो अब सो जाओ कल ऑफिस जाना है"। हम अपने कमरे  में सोने चले गए। सवेरा तो हो गया पर बाबु जी फिर कभी नहीं उठे। आज उनकी चिता के सामने खड़ा मैं ये सोच रहा हूँ की इस विष्वास-घात ने, या हमारे दिए हुए अकेले-पन ने उन्हें हमसे हमेशा-हमेशा के लिए दूर कर दिया। अब ये उलझन सारी जिंदगी अनसुलझी रह जाऐगी।

 

कलम से...... 

प्रियंका तिवारी  

 

Disclaimer :

This is a work of fiction. Names, characters, businesses, places, events and incidents are either the products of the author’s imagination or used in a fictitious manner. Any resemblance to actual persons, living or dead, or actual events or any other literary material, called by any other name, is purely coincidental. The story is purely for entertainment purpose and the author has no intention to hurt the sentiments & emotions of any individual or public at large.

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