We all know that a country’s actual economic growth doesn’t really depend only on the big industries on a mega scale. Those are scarce in numbers. So the multinational organizations do bring in the development but on a general overview it’s the multiple small scale industries that are the backbone of a country’s economy. We are talking about something as small as cottage industries and the micro small medium enterprises. These small businesses are the true economy developers. These industries are diverse with each state adapted to their regional culture and tradition. And that’s why they are also a kind of cultural symbol.
What is the concept of MSME Registration?
The Indian government has created more accountability and support for these MSME industries in order to promote them and encourage their growth. Under the MSMED act the government has classified MSME industries as micro, small and medium enterprises. To every such industry that has an MSME Registration under the MSMED act, the Indian government provides with subsidies and certain incentives. But in order to avail for such benefits, you must get an MSME Registration. Apart from the small scale business in states, the other registered businesses like sole proprietorships, limited liability partnerships, public limited companies and private limited companies can also get an MSME registration for themselves. Let’s look at the classification criteria for the MSME Registration.
MSME Classification under the MSMED
In order to get MSME Registration your will have to get some information on how and under what category you need to do the registration for the size of industry you own. Following is the classification:-
1) Micro enterprise:- You may register under this section if the investments in your industry did not exceed the amount of Rs25 lakhs, this is for the manufacturing sector of industry. For the service sector, it’s 10 lakhs.
2) Small enterprises:- You can get your MSME Registration under this category if the investments into your industry were made more than the amount of Rs 25 lakhs but did not exceed the amount of Rs5 crores. For the ones in service sector the rage is from the amount of Rs 10 lakhs to Rs2 crores.
3) Medium enterprises:- If your business has an investment that is more than Rs5 crores for the manufacturing sector while more than Rs 2 crores for service the sectors. Also not exceeding the amount of Rs 10 crores for manufacturing sector and Rs 5 crores for service sector then you may as well get your MSME Registration under the medium enterprise category.
MSME Registration Process:-
The MSME Registration takes place under the MSMED act. It’s not legally mandatory to apply for SSI registration but it is highly recommend getting an MSME Registration in order to avail the great government benefits.
The typical MSME Registration process involves preparing an application to be submitted to the respective government department. Your MSME Registration application will require some of your basic details to be filled in its form. The processing of your application will take anywhere between 15 days to 20 days which depend upon the satisfactory completion of your application. In case any errors are found on review, you will be asked to check whether to correct them and re-submit. Once the department is satisfied, you will be granted MSME Registration certificate making you eligible for all the desirable government given benefits.
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