Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play a crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in industrialization of rural & backward areas.
ORGANIZATIONS CONSIDERED AS ‘MSME’
MSME are classified in two classes:
1. Manufacturing enterprises: Organization engaged in the manufacture, production, processing or preservation of goods with the following limits as categorized below:
§ MICRO ENTERPRISE- Investment in plant and machinery upto max 25 lakh
§ SMALL ENTERPRISE- Investment in plant and machinery more than 25 lakh but upto 5 crores
§ MEDIUM ENTERPRISE- Investment in plant and machinery more than 5 crores but upto 10 crores
2. Service enterprises: Organization which is engaged in providing or rendering services with the following limits as categorized below:
§ MICRO ENTERPRISE- Investment in equipment upto 10 lakh
§ SMALL ENTERPRISE- Investment in equipment more than 10 lakh but upto 2 crores
§ MEDIUM ENTERPRISE- Investment in equipment more than 2 crores but upto 5 crores
In order to promote the ease of doing business and align the definition of MSME with GST regime, recently the Government has proposed to change the criteria for classifying MSMEs.
It proposes to define SSI Registration on the basis of annual sales turnover rather than on investment basis which results in no distinction between manufacturing and service unit.
The proposed thresholds are:
· 1.Turnover upto 5 crores- MICRO ENTERPRISE
· 2. Turnover upto 75 crores- SMALL ENTERPRISE
· 3. Turnover upto 250 crores- MEDIUM ENTERPRISE
Before proceeding with registration, one should have a clear roadmap of setting up of MSME
ROADMAP FOR SETTING UP ‘MSME’
1. Setting up the Project
For establishing MSME, the first and foremost thing is to select the project for providing the product/ service which could generate the sufficient surplus for the economy
2. Product selection
While finalising the product ensure its ease of availability, its accessibility to the market.
3. Technology Selection
Installation of modern machinery and equipments is most important for the efficient operation of MSME
4. Arrangement of finance
No MSME unit can operate without monetary support. Financial assistance in India for MSME units is available from a variety of institutions.
5. Filing of the single registration form at the website.
6. NSIC adopts certain procedures for hire purchase of machinery
7. Construction of Building
Designing of the factory building is an essential part
8. Getting the Utility Connections
Power and water supply for carrying the operation is necessary
9. Clearances
Enterprises has to obtain various clearances and permissions depending upon the nature of his unit and products manufactured.
10. Quality Certifications
To gain the strong position in this competitive environment Quality Certification has also become extremely important. Government has launched Schemes to provide Financial assistance for availing the certification.
REGISTERATION REQUIREMENT UNDER MSME
Though the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME under MSMED Act, 2006 because the government has provided numerous benefits to the MSME since it is contributing in the growth of economy in terms of output, exports and employment opportunities.
Also, in recent years the MSME sector has been consistently grooming in comparison to the overall industrial sector and in order to promote it government regularly announces various schemes for its growth.
Registration process for MSME is simplest by filling up only one page i.e., Udhyog aadhaar memorandum through online mode.
The only information is required is Aadhaar number and name of owner.
**Note:
o The registration at Udhyog Aadhaar is on self declaration basis. No documentation is required.
o Certificate of registartion will be issued within 24 hours
o More than one Udyog Aadhaar can be filed with the same Aadhaar number
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