To access benefits under the MSMED Act offered by Central or State Governments and the banking sector, MSME Registration is essential. MSME stands for Micro, Small, and Medium Enterprises, encompassing businesses that fall under these three categories. Over the past five decades, the MSME sector has emerged as one of the most dynamic and vibrant segments of the Indian economy.
On May 13, 2020, the Government of India announced significant relief measures for MSMEs, including a revised definition for the sector.
Under the updated definitions, the distinction between manufacturing and service enterprises has been removed, investment limits have been increased, and turnover has been introduced as an additional criterion.
The updated definition is as follows:
Micro Enterprise:
Enterprises with investments up to ₹1 crore and turnover up to ₹5 crore are classified as micro enterprises.
Small Enterprise:
For small enterprises, the investment limit is revised to ₹10 crore, with a turnover cap of ₹50 crore.
Medium Enterprise:
Enterprises with investments up to ₹50 crore and turnover up to ₹250 crore are categorized as medium enterprises.
A table showcasing the differences between the old and new definitions of MSMEs can provide
The updated definition of MSME is set to benefit businesses across all categories, as it allows enterprises to grow without losing access to the various advantages associated with MSME status. This new definition is a significant step forward in supporting the Government of India’s Atma Nirbhar Bharat Abhiyan initiative.
Micro, Small, and Medium Enterprises (MSMEs) operating in the manufacturing or service sectors are eligible for MSME registration. MSME and SSI (Small Scale Industries) are terms often used interchangeably.
Our team will connect with you to collect the required documents along with a straightforward checklist. You simply need to complete the checklist and submit it with your documents for processing. Once we receive your documents, they will be thoroughly verified.
After verification, we will initiate the registration formalities for you. Throughout the process, your dedicated compliance expert will keep you informed about the progress of your SSI/MSME Registration. The application will be submitted online for quick processing.
Any individual or entity engaged in manufacturing or service activities, including sole proprietorships, partnerships, private limited companies, or LLPs, can apply for MSME registration under the updated definitions of micro, small, and medium enterprises.
The MSME registration certificate is valid for a lifetime. Once issued, there is no need for renewal, and businesses can enjoy the benefits indefinitely.
The value of plant and machinery is calculated based on the original cost of purchase, excluding the cost of land, building, and any other depreciated value.
MSME registration is not mandatory but is highly recommended for businesses to avail of benefits such as subsidies, tax exemptions, and access to government schemes.
Yes, MSME registration can be revoked if it is found that the information provided during registration is false or if the entity violates any conditions under the MSME Act.
No, the MSME registration certificate is issued digitally. You will receive a soft copy via email, which you can download and print if needed.
Yes, Aadhaar is mandatory for individuals applying for MSME registration as it is the primary identification proof required during the online process.
Yes, you can apply for MSME registration online through the official government portal. However, seeking professional assistance can make the process quicker and ensure error-free submissions.
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