FAQ 1: What is MSME?
MSME stands for Mico, Small and
Medium Enterprise. As per Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006 the MSME are classified in two classes:-
|
Nature of Enterprise
|
Manufacturing Sector
(Investment in Plant &
Machinery excluding Land and Building)
|
Service Sector
(Investment in Equipment
excluding Land and Building)
|
|
Mico
|
does not exceed Rs. 25 lakh
|
does not exceed Rs. 10 lakh
|
|
Small
|
more than Rs. 25 lakh but does not exceed Rs. 5 crore
|
more than Rs.10 lakh but does not exceed Rs. 2 crore
|
|
Medium
|
is more than Rs.5 crore but does not exceed Rs.10 crore
|
more than Rs. 2 crore but does not exceed Rs. 5 crore
|
FAQ 2: Why we get registration under MSMED Act, 2006?
Benefits for MSME (Micro, Small & Medium Enterprise)
1.
Up to 1% Reduction in rate
of Interest on Overdraft Facility from banks
2.
Preference in procuring
Government tenders
3.
Easy finance availability
from Banks, without collateral requirement
4.
2% concession on Interest rate
of term loan
5.
Easier to get
registrations, Licenses, permissions & approvals
6.
15% CLCSS (Credit linked
capital subsidy scheme) subsidy on fully automatic machine brought under bank
term loan
7.
Manufacturers will be eligible for IPS Subsidy.
8.
All new industrial units will be exempt from
payment of Stamp duty, registration fees, in C, D, D+ areas
9.
80-90% refund of Octori under B, C, D, D+ areas
10.
Electricity duty exemption for 15 years under C, D, D+ areas
11.
Subsidy on ISO
Certifications
12.
Subsidy on NSIC Performance
and Credit ratings
13.
Protection against delay in
payment from Buyers and right of interest on delayed payment
14.
Special consideration in
International Trade fairs & exhibitions
15.
50% subsidy on the expenses
incurred for patent registration.
16.
Reservation policies to
manufacturing / production sector enterprises
17.
Time-bound resolution of
disputes with Buyers through conciliation and arbitration
18.
Tax subsidies, power tariff subsidies, capital
investment subsidies
19.
Credit prescription
(Priority sector lending), differential rates of interest etc.
20.
Excise Exemption Scheme
21.
Exemption under Direct Tax
Laws.
22.
Reimbursement of ISO
Certification Expenses
23.
Statutory support such as
reservation and the Interest on Delayed Payments Act.
24. Participation in Government Purchase registrations
FAQ 3: Who are eligible to get registration under MSMED Act, 2006?
a)
Proprietorship enterprises,
b)
Enterprises managed by Hindu undivided family,
c)
Enterprises run by association of individuals,
d)
Co-operative societies,
e)
Partnership firms and
f)
Enterprises managed by companies or undertakings
etc.
FAQ 4: What is the procedure to get MSME Registration?
There are two stages of registration
a) Provisional Registration
An enterprise is granted provisional
registration when it is at a pre-investment stage.
b) Permanent Registration
After getting Provisional registration, an
enterprise can apply for permanent registration just before launching its
production facilities. However, an enterprise that is already functioning can apply for permanent registration directly.
FAQ 5: What is the validity of Provisional registration?
Provisional registration is valid for a period of 2 years
from the date of its Issue. In case Unit is not set up during two years,
applicant may apply afresh and obtain a new provisional registration.
FAQ 6: Can MSME registration be revoked?
If MSME violate the regulations of MSMED Act, 2006 then the
registration may be revoked. The following are the ways which will make it
liable for de-registration:
a)
If it starts manufacturing of any new item that
require an other kind of statutory license.
b) If it crosses
the specified investment limits.
c) It does not satisfy the condition of being
owned, controlled or being a subsidiary of any other industrial undertaking.
