There are small and medium enterprises which fall under SSI/MSME category. MSME stands for Micro, Small and Medium enterprises. Being the backbone of an economy sector, MSME enterprises acts as an engine which helps in the growth of the economy and promoting equitable development. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To utilise all the benefits which are offered under MSME act, the enterprise should be registered as MSME with the concerned department.
SSThese benefits of MSME registration include priority sector lending, power tariff subsidies, capital investment subsidies and excise and direct tax exemptions. Following are the conditions which need to be fulfilled to qualify under MSME Act.
- All the manufacturing enterprises which have invested less than 10 crores in machinery and plant are allowed to be registered as MSME
- In service enterprises, the investment in plant and machinery should not be more than 5 crores
- And in near future, if your enterprise exceeds the maximum limit, then it will not sum up as MSME