- Taxmantra Global
Understanding MSME Registration in India – Benefits and Procedure
For quite some time now, the Indian Government has been focusing on the MSME sector. A lot of beneficial schemes have been designed for the SMEs and MSMEs. Unfortunately, a big part of the industry, still are not aware of the benefits that they can be availed.
In this piece, we will help you in understanding the meaning of MSME, the registration procedure, the documents required and the benefits of it.
The Micro, Small and Medium Enterprises Act, 2006 defines MSMEs engaged in manufacturing or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act 1951 based on their investment in plant and machinery or engaged in providing or rendering of any service or services.
So, for micro unit the investment level was up to Rs 25 lakh, a small enterprise with investment between Rs 25 lakh and Rs 5 crore and a medium one with investment between Rs 5 crore and Rs 10 crore.
In case of services, the investment limit was for micro up to Rs 10 lakh, small Rs 10 lakh to Rs 2 crore and medium Rs 2 crore to Rs 5 crore.