MSME stands for Micro, Small and Medium Enterprises which are regulated by the MSMED Act, 2006. MEME helps promote these industries using the provisions of the act. The government approved body will authorize various incentives approved under the MSMED Act. MSME registration or Udyog Aadhar Registration can be availed by the enterprises working in both manufacturings as well as in the service sector.
However, MSME Registration is an optional Registration under the MSMED Act, but it provides Micro, Small and Medium-sized enterprises with a host of benefits such as interest rate concessions, tax benefits and access to a range of subsidies and schemes. It also ensures remedies against non-payment to MSMEs. MSME or Udyog Aadhar Registration is also known as SSI Registration.
As per MCA notification dated 22 January 2019, MSMEs are protected against delay in payment from buyers. The payment to MSME shall not exceed 45 days from the date of acceptance of goods or services. Every company has to report the default in the payment made towards an MSME recognized entity. MSME registered entities are eligible for capital subsidies, interest rate subvention, business marketing, and expansion support, and power tariff subsidies. Provenience can help startups to get MSME Registration Online.
A dedicated portal has been provided by the government for MSME registered entities to report a delay in payment by any customer beyond 45 days. Further Ministry of Corporate Affairs has asked all corporate entities to report delayed payments to MSME through half-yearly form MSME-1.
To promote women entrepreneurship, a special incentive is given to MSMEs having women entrepreneurs. Credit link capital subsidy and state-wise special incentive are provided. Incentives by states and union territories are provided from time to time to the entities having MSME registration.
As per the union budget announcement in 2019, Entities having an MSME registration can avail Interest rebate @ 2% on loan taken from banks and financial institutions. Interest rebate is aimed at easing the financial burden of small businesses and helping them become more competitive.
50% subsidy on patent registration is provided by the government. MEMEs can also avail ISO 9000/ISO 14001 certification reimbursement scheme under which the government provides reimbursement of expenses of 75% up to a maximum of 75, 000 to each unit as one-time reimbursement.
Make the payment of professional registration fees.
Arrange to provide basic documents as per the list provided by us.
An application is filed through the MSME Portal.
MSME Registration Certificate is provided.
Bhanu has been working for Unifii for the last 1.5 years and as our accountant and Legal advisor. His knowledge and attention to detail have aided in keeping our company on track during recent times and through a major restructure. I feel confident in recommending Bhanu's and his team's professional services. He is not only thorough but also easy to work with and always willing to take the time to discuss my concerns and respond to questions.
He is proactive, result oriented, and a responsible person. He is always ready to put all his energy and time to get the work done in the best possible manner. Bhanu is a well connected professional that always takes the time to support anyone is his network. I wish him all the best.
Extremely professional, time oriented and supportive are three words that goes perfectly well for Bhanu. He is my go to person for all accounting queries and requirements. I strongly recommend his professional services to all. Besides he is a great human being to know.
I've worked closely with Bhanu. He is a very thorough and confident person. He knows his work well and tries to improvise in everything. Wish you luck Bhanu!
Bhanu is a person to count upon, with his expertise in his domain and knowledge he brings on you can reach him with a problem any time.His appetite to listen and understand the issue makes him the man for the job. He is proactive, energetic and a resourceful guy. My best wishes to Bhanu and Provenience for future endeavour.
Provenience is perfect to partner with in your startup or corporate journey. Seamless service and support provided by team is really helpful specially when you are trying to setup your venture. I would like recommend Provenience to every startup.
Bhanu is one of the most sincere and trustworthy person I have come across. He is extremely ethical and is completely customer focused. His hard work and dedication is commendable and with him handling the legal as well as taxation things are always in order and compliant. Keep up the good work Bhanu. Wishing you more and more success as you grow.
MSME stands for micro, small, and medium enterprises. Definition criteria are different for the manufacturing and service sectors. MSME is also known as SSI (small scale industries) and Udhog Aadhar
MSME Registration is an optional registration which can be chosen by entities in manufacturing and service sector. Criteria of classification are given below,For Manufacturing Sector
MSME registered entities enjoy a host of benefits from the government. Following are the benefits one gets by registering into MSME.
MSME definition criteria are different in the manufacturing and service sector. However, Both the sectors enjoy the same benefits.
Under this scheme, the government provides reimbursement of expenses of 75% up to a maximum of 75,000 to each unit as one-time reimbursement. The MSMEs which have already acquired QMS/EMS/HACCP certification are covered under this.
Under this scheme, the rating fee payable by the micro and small enterprises is subsidized for the first year only, and that is subject to a maximum of 75% of the fee or Rs. 40,000, whichever is less. The credit rating is being done by empanelled agencies like CRISIL, CARE, ONICRA, SMERA.
Priority sector lending is employment-intensive such as agriculture and MSME. MSMEs can obtain a collateral-free loan from banks and financial institution. MSME enjoys interest rate subsidy under priority lending. Banks are advised to open specialized branches for MSME funding.
As per Micro, Small, and Medium Enterprises Development (MSMED), Act 2006,
For the goods and services supplied by the MSME units, payments have to be made by the buyers within 45 days. If buyer unable to pay within 45 days it shall be liable to pay compound interest with monthly rests. With the Latest Amendment in Company Act 2013, all corporate entities need to report the delayed payment to MSME Supplier in case payment exceed 45 days with the reason of delay.
The Provisional Registration Certificate is a temporary MSME certificate issued by the government which expires after five years. If the unit is not operational or the investment limit exceeds the limits set by the government, then the enterprise can re-apply for the PRC. After attaining the PRC, the enterprise can apply directly for a Permanent License.
Yes, it is better to have a provisional registration certificate before the commencement of the operations of the enterprise. This would help the enterprise function smoothly and lead to faster clearances from regulatory bodies. Also, once the PRC is availed, the MSME can directly apply for the permanent license for the SSI certificate.
Under the MSME registration, for obtaining the SSI certificate, only the original value of the plant and machinery will be considered by the regulatory authorities.