The definition of
micro, small and medium enterprises as per Micro, Small and Medium Enterprises
Development (MSMED) Act, 2006 is as under:
Enterprises engaged in
the manufacture or production, processing or preservation of goods as specified
below:
•
A micro
enterprise is where investment in plant
and machinery is less than Rs. 25 lakh
•
A small
enterprise is where the investment in
plant and machinery is more than Rs. 25 lakh but less than Rs. 5 crore
•
A medium enterprise
is where the investment in plant and
machinery is more than Rs.5 crore but less than Rs.10 crore.
It has made very easy for
enterprises that are having MSME Certificate to obtain Licenses, approvals and
registrations on any field for their business from the respective authorities
as they can produce the Certificate of MSME Registration while making
application.
Information required for seeking registration
and obtaining certificate of MSME:
•
Personal Information: Name of the applicant, Aadhar Number,Social
Category i.e SC/ST etc., Mobile Number, E Mail ID, Address with Pin code
•
Business Information : Name of Enterprise,Type of organization,
Address of Operation, Date of Commencement of Business, Main Business Activity
with NIC 2 Digit Code, Number of
employees, Investment in Plant & Machinery
•
Other Info: Bank Particulars, Name and Branch Address of Bank, Account
Number, Type of Account, IFSC Code
Documentation and
registration
-
Aadhar is mandatory of Individual/ owner/
partner/occupier
-
PAN Card
-
Address with Pin code ( Address Proof)
-
E Mail ID and Mobile
-
Statutory Fee Rs.1481/-
-
Registration facility is provided for online
and offline
Benefits :
-
Support Available for Technology Upgradation
·
Ministry implements a scheme called Credit
Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and
Small enterprises in the country. Under the scheme, 15 per cent capital
subsidy, limited to maximum of Rs 15 is provided to the eligible MSEs for
upgrading their technology with the well-established and improved technology as
approved under the scheme. 48 products and sub-sectors have been approved under
the CLCSS till date.
·
The rating fee payable to SMERA and ICRA by the
micro and small enterprises is subsidized for the first year only and that is
subject to maximum of 75% of the fee or Rs. 40000/-, whichever is less
-
Financing through banks available to MSME at Concessional
rates
The banks have been advised by RBI for extension of credit
facilities for the MSE sector - working capital limits to such units is
computed on the basis of minimum 20% of their estimated turnover up to credit
limit of Rs.5crores.
·
A composite loan limit of Rs.1crore ( term loan
and working capital) can be sanctioned
by banks to enable the MSME though Single Window
·
Collateral free loans and advances by banks in
the case of loans upto Rs 10 lakh extended to units in the MSE sector. Further
banks may, on the basis of good track record and financial position of MSE
units, increase the limit of dispensation of collateral requirement for loans
up to Rs.25 lakh.
·
1 % interest exemption on Overdraft to MSME
·
The Credit Guarantee scheme (CGS) seeks to
reassure the lender that, in the event of an MSE unit, which availed
collateral- free credit facilities, fails to discharge its liabilities to the
lender, the Guarantee Trust would make good the loss incurred by the lender up
to 85 % of the outstanding amount in default.
-
Concessions in International Fairs and ISO Registrations:
·
Financial assistance is provided on
reimbursement basis to Govt and Non- Govt organizations associated with MSME
for deputation of MSME business delegation to other countries for exploring new
areas of MSMEs, participation by Indian MSMEs in international exhibitions,
trade fairs, buyer seller meet and for holding international conference and
seminars which are in the interest of MSME sectors.
·
Micro & Small Enterprises (MSEs) can get
the reimbursement of certification expenses up to 75% of such expenses or Rs.75,000/-
( Whichever lower) to each unit as
one-time reimbursement only to those MSEs which have acquired Quality
Management Systems (QMS)/ISO 9001 and /or Environment Management Systems (EMS)/
ISO14001and / or Food Safety Systems (HACCP) Certification.
-
Concession in interest rates and priority for payment :
·
Banks are advised to give interest subsidy of
1% on Overdraft to MSME
·
MSMED ACT 2006 Provides payments priority as
under
ü The buyer is to make payment on or before the date agreed on
between him and the supplier in writing or otherwise within 45 days
ü The agreement between seller and buyer shall not exceed more
than 45 days
ü In case of delay by buyer in making payment of the amount to
the supplier, buyer is liable to pay compound interest with monthly rests to
the supplier on the amount from the appointed day or, on the date agreed on, at
three times of the Bank Rate notified by Reserve Bank.
-
Bar Code Registration Subsidy and Other Subsidies
·
Enterprises that have MSME Registration can
avail Bar Code Registration subsidy.
·
Enterprises that have MSME Registration can
avail Subsidy on NSIC Performance and Credit ratings
·
Enterprises that have MSME Registration can
avail 50% subsidy for patent registration application
-
Government Tendering benefits
·
Issue of tender documents free of cost
·
Waiver of Security deposits
·
Exemption from withholding of earnest money
from payments
·
Enterprises having MSME Registration have
preference in procuring govt tenders.
·
Enterprises having MSME Registration can avail
price preference by 15% variation for L1 in procuring govt tenders.
-
Other benefits
·
Enterprises having MSME Registration can avail Discount
in electricity bill payments by making an application with electricity
department
·
Startup Enterprises having MSME Registration
can avail Excise Exemption where as term depends on the business activity and
nature of business.
