MSME / UDYAM Registration
The Central Government, after obtaining the recommendations of the Advisory Committee in this behalf, hereby notifies certain criteria for classifying the enterprises as micro, small and medium enterprises and specifies the form and procedure for filing the memorandum (hereafter in this notification to be known as “Udyam Registration”), with effect from the 1st day of July, 2020.
Types of Enterprises In MSME
- • Micro Enterprise : where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;
- Small Enterprise : where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and
- Medium Enterprise: where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
Benefits Of MSME/UDYAM Registration
Government Tenders : The certified MSME enterprises are given the highest priority in lending government tenders during any bid. This is one of the most important benefit for registering under MSME and winning the big tenders. Hence, registered MSME’s get higher preferences
Tax And Electricity Bills : The certified MSME’s can enjoy the bill reduction. Electricity duty is excluded from the electricity bills for certified enterprises. So the certified MSMEs can avail concession in the electricity bills you can enjoy the tax benefits in your initial years of business
Bank Loans : It is easier for certified MSME’s to get bank loans with low-interest rates. The banks provide loans to MSME’s at cheaper rates as compared to large-sized companies. Banks and some other financial institutions also provide various special schemes to the certified MSME’
• Trade mark & Patent Registration Subsidy : The Business enterprises which are registered under the MSME Act are provided with a heavy subsidy for trade mark & patent registration of about 50 percent. The subsidy for trade mark & patent registration can be used by sending an application to the respective authority.