MSME is the abbreviation for Micro, Small, and Medium Enterprises. MSME registration is also known as Udyam Registration or Udyog Aadhaar. MSME units are the back born of every economy and play a major role in the development of any country. MSME’s play important role in providing large employment opportunities at lower capital costs than large industries and also help in the industrialization of rural and backward areas. MSME’s assuring a more equitable distribution of national income and wealth in the country.
To boost the businesses of MSME entrepreneurs, the government of India provides many schemes, benefits, subsidies, and incentives to the registered MSME units through the MSMED Act. If your business is registered under MSME then you get benefits such as eligibility for lower rates of interest, excise exemption schemes, tax subsidies, power tariff subsidies, capital investment subsidies, and other support.
An enterprise shall be classified as a micro, small or medium enterprise on the basis of the following criteria, namely:-
- a 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;
- a 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
- a medium enterprise, where the investment in plant and machinery or equipment does not exceed twenty crore rupees and turnover does not exceed one hundred crore rupees.
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