A country’s true economic growth depends not just on its mega-scale industries and multi-national organizations but also on its medium level industries, small scale business and cottage industries. For a developing country like India whose economy is majorly dependent on agriculture and related industries, medium level and small scale industries could be considered as its heartbeat. Every state has its own culture and tradition towards what industries they adopt and hence they also become the cultural symbol. No wonder that India, with its abundant natural resources and diverse climate variations, is one of the largest countries practicing such type of industries in a very large scale.
In order to create more accountability and to support these industries, Government of India has classified them into a category known as MSME- Micro, Small and Medium Enterprises. It is the official body that supports and promotes micro, small and medium size industries across the country through the MSMED Act. The Government also provides subsidies and incentives to industries coming under MSMED Act. To subscribe under MSME, a registration procedure is compulsory. Apart from the micro, small and medium level enterprises, proprietorship firms, LLPs, public and private limited companies can also register under MSME.
To register under MSME, an industry owner should know how and what category to classify his company into. So, the Government has come up with a set of regulations and definitions for the industries. The definitions and classifications are based on the investments (plants and machinery) that particular industry has made and it is separate for the service and manufacturing sectors.
Micro industries- The investment does not exceed 25 lakh for companies in the manufacturing sectors and 10 lakh for the service sector.
Small industries- The investment does not exceed 5 crore for companies in the manufacturing sectors and 2 crore for the service sector.
Medium industries- The investment does not exceed 10 crore for companies in the manufacturing sectors and 5 crore for the service sector.
Benefits of MSME registration:
Registering your industry under MSMED has many benefits. Apart from the fact that the businesses get covered by the Central and State Government schemes, it also helps the industry owners in having better awareness about the new schemes and better accountability. Some of the standard benefits include easier access to bank loans and subsidies (tax, power tariff, capital investment etc), eligibility to apply for various Government’s beneficial schemes and visibility in various laws (banking, exercise, direct taxes etc).
MSME Registration Process:
The registration under the MSMED Act is not mandatory for the companies but it is always advisable for them to have the Government backing up their company. So many medium and small scale industries are coming forward to register their company. The typical registration process will require an application to be prepared and submitted to the respective government office. The application would require filling of the complete details of the nature of the industry and many supporting documents. The average time taken to process is anywhere between 15-20 days depending upon the correct completion of the formalities.
Even though the registration process is pretty straightforward, industry owners might feel overwhelmed to complete all the formalities. We, at MyEfilings, offer impeccable services to industries of any level in initiating, processing and completing the MSME registration procedure. Our experts have years of experience in offering valuable advice and quick help for people who are indeed of any type of business advices. Our professional services would ensure that you will always be provided with nothing but the best services.