Things you need to know about MSME Registration.
MSME registration in Bangalore is obligated for Micro, Small and Medium sized Enterprises to obtain numerous benefits issued under MSMED Act that arrives into existence by the year 2006. It is also ...
MSME registration in Bangalore is obligated for Micro, Small and Medium sized Enterprises to obtain numerous benefits issued under MSMED Act that arrives into existence by the year 2006. It is also known as SSI- Small Scale Industries and SSI registration is also possible to be registered. MSME acts as an engine for our economic growth that endorse equitable development for all peoples. This MSME sector subsidizes 45% of Indian Industrial Employment and 50% of Indian Export and on an overall of 95% of total industrial units of our country. There are 6000+ varieties of products are mass- produced in these kind of MSME industries. The growth of these industries flourishes the whole countries economy. MSME is broadly classified as
(1) Service Enterprise
(2) Manufacturing Enterprise
The enterprises committed in the manufacturing or production of goods pertaining to any industry specified in the first schedule to the industries Act, 1951 and are characterized in terms of expenditure in Plant & Machinery are said to be the features of manufacturing enterprise. The enterprises that are engaged in providing or rendering services and are characterized in terms of investment in equipment are said to be service based enterprise. In terms of investment on machineries or plant, for MICRO -manufacturing enterprises it costs around 2,500,000 ¹ and for MICRO- service enterprise it costs less than 10,00,000 ¹. In terms of investment on machineries or plant, for SMALL -manufacturing enterprises it costs less than 50,000,000 ¹ and for SMALL - service enterprise it costs less than 20,000,000 ¹. In terms of investment on machineries or plant, for MEDIUM -manufacturing enterprises it costs less than 100,000,000 ¹ and for MEDIUM - service enterprise it costs less than 50,000,000 ¹. The ministry of MSME has notified the UAM - Udyog Aadhaar Memorandum under MSMED Act-2006 to promote the business in an easy-peasy manner.
Due to the rise in registration of MSM enterprises, the bank loan and its rate of interest is reduced to low price (i.e) 1-1.5% lesser than usual loans. They can utilize various tax allowance and easily accessible to get credit. This enterprise also allows credit for MAT- Minimum Alternate Tax and forwarded up to 5 years. Even multiple government tenders are open only to MSME industries and the business which are registered under MSM enterprise are given superior preference for government based license and certification. Our Indian country welcomes everyone with multiple opportunities and also helps budding entrepreneurs to enter and establish in the industrial market. Generally, MSME deals with an intense of labour based rather than gigantic corporate sectors and concentrates on employment with full potential and low capital. A private limited company, partnership firm, limited company, Hindu undivided family, one person company and producer company can register in Micro , Small and Medium sized Enterprise. The enterprise which have MSME registration certificate can obtain subsidy up to 50% in patent registration .
Currently, this sector has materialized as a dynamic sector of our country's economy and devotes tremendously to the socio- industrial evolution. The State Government is the fundamental authority for the advancement and expansion of MSME. There are multiple reasons for which the small scale industries in India has endorsed an eruption of growth and the factors are- extensive support from ministry, raw material and machinery procurement , Managerial and mechanical skills, tooling and testing support, export promotion, less capital and project files, etc.
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ABOUT THE AUTHOR
hai, this is rsjagadeesh from earnlogic consultancy bangalore. this is my article on msme registration and its features.