MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the backbone of any economic system and are an engine of economic development, advancing impartial improvement for all. MSME registration or SSI registration helps businesses avail a number of government subsidies and advantages of MSMED act, Government of India offering number of subsidies, schemes and incentives to promote MSMEs through the MSMED Act. To avail the advantages under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is necessary.
MSME registration is not necessary but it is usually recommended to small and medium enterprises to get it done it offers a number of advantages, such as rate of interest is quite low, tax subsidies, capital investment subsidies, power tariff subsidies and much other support from the government sector.
What are the different types of MSME's?
There are 3 types of MSME or SSIs which can be classified as under:
Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment.
In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores.
And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores.