Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play a crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in the industrialisation of rural & backward areas.
MSME are classified into two classes:
1. Manufacturing enterprises: Organization engaged in the manufacture, production, processing or preservation of goods with the following limits as categorized below:
MICRO ENTERPRISE- Investment in plant and machinery upto max 25 lakh
SMALL ENTERPRISE- Investment in plant and machinery more than 25 lakh but to 5 crores
MEDIUM ENTERPRISE- Investment in plant and machinery more than 5 crores but up to 10 crores
2. Service enterprises: Organization which is engaged in providing or rendering services with the following limits as categorized below:
MICROENTERPRISE- Investment in equipment up to 10 lakh
SMALL ENTERPRISE- Investment in equipment more than 10 lakh but up to 2 crores
MEDIUM ENTERPRISE- Investment in equipment more than 2 crores but up to 5 crores
In order to promote the ease of doing business and align the definition of MSME with GST regime, recently the Government has proposed to change the criteria for classifying MSMEs.
It proposes todefine SSI Registration on the basis of annual sales turnover rather than on investment basis which results in no distinction between manufacturing and service unit.
The proposed thresholds are:
• 1.Turnover up to 5 crores- MICROENTERPRISE
• 2. Turnover up to 75 crores- SMALL ENTERPRISE
• 3. Turnover up to 250 crores- MEDIUM ENTERPRISE
Before proceeding with registration, one should have a clear roadmap of setting up of MSME
For establishing MSME, the first and foremost thing is to select the project for providing the product/ service which could generate the sufficient surplus for the economy
While finalising the product ensure its ease of availability, its accessibility to the market.
Installation of modern machinery and equipments is most important for the efficient operation of MSME
No MSME unit can operate without monetary support. Financial assistance in India for MSME units is available from a variety of institutions.
5. Filing of the single registration form at the website.
6. NSIC adopts certain procedures for hire purchase of machinery
Designing of the factory building is an essential part
Power and water supply for carrying the operation is necessary
Enterprises has to obtain various clearances and permissions depending upon the nature of his unit and products manufactured.
To gain the strong position in this competitive environment Quality Certification has also become extremely important. Government has launched Schemes to provide Financial assistance for availing the certification.
Though the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME under MSMED Act, 2006 because the government has provided numerous benefits to the MSME since it is contributing in the growth of the economy in terms of output, exports and employment opportunities.
Also, in recent years the MSME sector has been consistently grooming in comparison to the overall industrial sector and in order to promote it, the government regularly announces various schemes for its growth.
The registration process for MSME is simplest by filling up only one page i.e., Udhyog aadhaar memorandum through online mode at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.
The only information is required is Aadhaar number and name of the owner.
o The registration at Udhyog Aadhaar is on a self-declaration basis. No documentation is required.
o Certificate of registration will be issued within 24 hours
o More than one Udyog Aadhaar can be filed with the same Aadhaar number