MSME Criteria Revised

Micro, small, and medium-sized enterprises (MSMEs) are vital to the socio-economic development of our country. MSMEs are administered by the Ministry of Micro, Small, and Medium Enterprises, and they must be registered to benefit from the Micro, Small, and Medium Enterprises Development (MSMED) Act. MSME/Udyam registration is essential since it permits these companies to engage in a variety of government-sponsored initiatives. Manufacturing and service firms are the two types of MSMEs.

What are the prerequisites for becoming an MSME?

It is an online procedure that entails the verification of your Aadhar number. The certificate is available online without the need for a physical copy. Furthermore, the process for MSME Certificate holders to get licenses, permits, and registrations from their respective authorities in any field for their company has been shortened even further. As a result, while filing an application, they will be able to produce the Certificate of MSME Registration. Furthermore, applicants can request reimbursement for ISO Certificate Expenses by filing an application to the proper authority, which is supported by MSME/Udyam Registration Certificates.

What are the advantages of MSME?

1. Because the interest rate is fairly low, about 1 to 1.5 percent, bank loans become less expensive as a result of registration. The interest rates on these loans are far lower than those on standard loans.
2. There is a one-time settlement charge for outstanding MSME sums.
3. Minimum alternative tax (MAT) credits could now be carried forward for up to 15 years instead of the prior ten.
4. A lot of government tenders are only available to MSME enterprises.
5. Because of the numerous rebates and incentives available once registered, the cost of getting a patent or creating industry is decreased.
6. They have easy access to credit.
7. MSME-registered enterprises are given priority when it comes to government licenses and certificates.
8. MSME qualifies for a number of tax benefits.

MSME has been given a new definition:

The government has taken the following steps to redefine the MSME:

• The amount of money that can be invested has grown.
• Additional turnover criteria have been incorporated.
• Discrimination between the manufacturing and service industries was abolished.
• Changes to the law will be made.

Examine the new MSME definition:

Under the Atmanirbhar Bharat Abhiyan (ABA), the government has modified the MSME classification by integrating composite criteria for both investment and yearly turnover. Furthermore, the MSME definition no longer differentiates between manufacturing and service industries. The sectors will be brought closer together as a result of this removal. The new MSME category follows, which considers both investment and yearly revenue when determining an MSME.

REVISED MSME CLASSIFICATION:

• MICRO UNITS are businesses with less than Rs. 10 crores in revenue and less than Rs. 1 crore in capital investment.
• SMALL UNITS are companies with a turnover of less than Rs. 50 crore and an investment of up to Rs. 10 crores.
• MEDIUM UNITS are businesses with a turnover of less than Rs. 250 crore and investments of up to Rs. 50 crore.

Registration of UDYAM Enterprise:

• Self-assertion is used to complete the registration process online. Our Udyam Registration webpage has a registration form.
• For new marketers who have not finished the EM-II course or who are not MSME-registered.
• Those who have already registered as UAMs.
• The following are the registration requirements:
• The Proprietor’s Aadhar is solely owned by the Proprietor.
• In a partnership firm, Aadhar of the Managing Partner.
• Aadhar card of an Authorized Signatory for a corporation, trust, society, Limited Liability Partnership (LLP), or Cooperative society.
• The social standing of the approved individual.
• The name of the company and the type of business (e.g., sole proprietorship, partnership firm, corporation, etc.).
• The PAN of the company
• The address of the registered business name and the location of the plant (if any)
• Details about your bank account (Bank Name, Bank Account Number, IFSC Code)
• The dates of incorporation and the beginning of commercial operations are the same.
• The number of workers (Male, Female and others)
• The National Industry Classification Code (NIC Code) is fully determined by the business’s operations.
• Turnover Invested in Plant, Machinery, or Equipment
• After completing the registration process and providing all required information, a Reference Number will be generated, which may be used to maintain or download the Udyam Certificate

Suggested read- udyam registration process

The following are the contributions of Micro, Small, and Medium Enterprises to the Indian economy:

1. Approximately 36.1 million Micro, Small, and Medium Enterprises (MSMEs) are currently producing in India.
2. MSMEs employs around 120 million people in India.
3. MSMEs account for 45 percent of India’s overall export revenue.
4. MSMEs make up 6.11 percent of manufacturing GDP and 24.63 percent of service GDP.
5. The MSME sector has continually risen at a pace of ten percent each year on average.
6. This sector accounts for around 8% of the country’s Gross Domestic Product.
7. According to research conducted by the Confederation of Indian Industries (CII) on Indian MSMEs, the MSME sector will contribute roughly 50% of India’s GDP by 2024.
8. Many MSMEs are located in rural areas, which slows the movement of people from rural to urban areas.