The Micro, Small and Medium Enterprises Development (MSMED) Act of 2006 contains the following definition:
According to the definition of Turnover of Financial Statements (Except export of Goods and Services Turnover), the initial value of the plant and machinery/equipment must be factored into the manufacturing/service sector calculations.
Also, Read- APPLY FOR UDYAM REGISTRATION
Manufacturing and service industries
ENTERPRISES | Investment in plant and machinery or equipment | Turnover |
Micro enterprise | Not more than INR 1 Crore | Not more than INR 5 Crore |
Small enterprise | Not more than INR 10 Crore | Not more than INR 50 Crore |
Medium enterprise | Not more than INR 50 Crore | Not more than INR 250 Crore |
Benefits of MSME Registration:
According to government policy, Udyam Registration is not a business or address proof, save in certain circumstances. It is required to take advantage of several MSME benefits from the state, federal government, banks, and others. Any firm can apply for and receive several perks or preferences by having the Udyam Registration.
- State and federal government departments provide financial assistance.
- Priority Lending Preference with Special Conditions in Bank Finance
- Customers should be given preference in the payment procedure, as per the law.
- Get a leg up on the competition when it comes to tendering and supplier selection.
- Special Advantages as a result of a government decision.
Subsidies from the federal government and state governments include the following:
Central Government:
- Show lifetime valid Udyog Aadhaar Registration to get 100% Collateral Free loans from all banks in India under the Credit Guarantee Plan (CGTMSE) scheme in both nationalized and private banks. The government also offers certain loan perks through COVID.
- The government announced a Mudra Loan for Micro and Small Businesses of up to Rs. 10.00 lacs at a lower interest rate.
- Subsidies of 15% of qualified plant and machinery up to a limit of Rs. 15.00 lacs are available for technical upgrades or to encourage the adoption of technology updated machinery. (Scheme of Capital Linked Subsidies)
- The TEQUP scheme provides a capital subsidy of 25% of the project cost, up to a maximum of Rs. 10.00 lakh, to registered MSME units in order to improve their competitiveness through Energy Efficiency and Product Quality Certification. While the government of India will offer a subsidy of 25% of the project cost, the remaining amount will be paid by a loan from SIDBI/banks/financial institutions.
- Patent registration for your innovation on the business name or business owner name is eligible for a 50% subsidy.
- In government tenders and departments, there is a waiver of the security deposit.
- All industries registered with the Udyog Aadhaar department for Import and Export processes receive support from MSME for marketing in India and around the world.
Suggested Read- print Udyog aadhaar certificate
State Government :
- Capital Subsidy on Plant and Equipment Investment: 10% – 20% of term loan/investment in plant and machinery and buildings.
- Interest Subsidy on Plant & Machinery and Building Term Loans: Reimbursement of Interest Subsidy ranging from 5% to 9% of term loan interest. i.e., assist in lowering loan costs and conserving bank account interest.
- Reimbursement of CGTMSE Fees for Term Loans as invoiced by the Bank.
- Worldwide Special thought is given to the placement of stalls at international trade shows.
- Electricity Duty Waiver for a period of five years.
- Assistance with Market Development.
- For Udyog Aadhaar registered businesses, reimbursement of up to 50% of ISO Certification costs is available.
- Udyam The training facilities supplied by the MSME department are available to registered units.
- In the deal for technological enhancement in Udyam Registered, technical and capital consultation and help were provided.
- With larger advantages, capital, and interest subsidies in food processing units and information technology development companies.