MSME

Micro, Small and Medium Enterprises

The Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly vibrant and dynamic sector in the Indian economy over the last five decades. MSME sector had saved India's economy from great recession in 2008 and still contributing like the backbone of the economy


As per MSME Act-2006, The MSMEs are classified into two categories

  1. Manufacturing Enterprises- The enterprises engaged in the manufacture or production of goods (as per Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use.
  2. Service Enterprises:-The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.
  3. In the month of February, 2018, the Union Cabinet chaired by the Prime Minister has approved change in the definition of the MSMEs.
  4. Now MSMEs will be defined on the basis of ‘annual turnover’ instead of investment in plant & machinery/equipment.


DOCUMENTS REQUIREMENTS FOR REGISTRATION UNDER MSME

Person or an entity must have PAN Number and Adhaar Card Number. If the entity is any Partnership Firm/ Company, then any of one Partner/ Director must have Adhaar No. Entity must have Mobile No. and E-Mail Id No. of persons employed in such Firm/ Entity Declaration required from Proprietor/ Partner/ Director regarding Amount of investment in Plant and machinery on their letter head Rent Deed/ Copy of Registry of property where the office is situated


BENEFITS FOR HAVING REGISTRATION UNDER MSME ACT

MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits and access to subsidies and schemes. To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person's name, a company being an independent legal entity can sue and also be sued in its own name. A person/ entity/ business house gets the registration under the Central Government and can proceed for opening of Bank Accounts in the name of his Proprietary Firm A business house or any entity can stand in the market and before any Government Department as a Registered Entity.