The benefits of MSME registration under the MSME act 2006

MSME

The  (“the Act”) Micro, small and medium enterprises development ( MSME ) act 2006  has been notified. It has received the assent of the president on 16th June 2006. The president under notification is dated 9th May 2007. The MSME registration has amended the Government of India.

MSME Registration

Classification of Enterprises

As per section 7(1) of the act and Ministry Notification dated on 29th September 2006. The following enterprises (whether proprietorship,HUF, AOP, Co-op Society, partnership or any other legal entity, by whatever name called) were classified as (MSME) micro, small and medium enterprises .

The business related in manufacture of goods or the production affecting to any business mentioned in (Development and Regulation) Act, 1951.

(i) Micro Enterprise : where the finance in plant and machinery is upto Rs. 25 lakhs.

(ii) Small Enterprise : where the finance in plant and machinery exceeds RS. 25 lakhs. But it’s upto Rs. 5 crores.

(iii) Medium Enterprise : where the finance in plant and machinery exceeds Rs. 5 crores. But it’s upto Rs. 10 crores.

The enterprises involved in providing or rendering of services :

(i) Micro Enterprise : where the finance in plant and machinery is upto Rs. 10 lakhs.

(ii) Small Enterprise : where the finance in plant and machinery exceeds RS. 10 lakhs. But it’s upto Rs. 2 crores.

(iii) Medium Enterprise : where the finance in plant and machinery exceeds Rs. 2 crores. But it’s upto Rs. 5 crores.

MSME Registration act 2006

If a micro or small enterprise (MSME ) has registered a note with DIC of its center. Then it stands to obtain as to timely payment in value to rendering of services to any buyer or supply of goods .

Any buyer availed any services from Micro ( MSME )or Small (SSI) enterprises or who purchased any goods .It is registered a note with the authorizer. Then the payment is made by the buyer. Before the date agreed upon between him. The supplier within a period of 15 days from the day or in writing. The services are rendered or goods are delivered.  The term of credit is cannot transcend more than 45 days from the date of giving services or product.

Other benefits of MSME registration

(i) Qualified for availing exemption under :

  • Direct Tax Laws
  • Excise Scheme

(ii) Credit prescription (priority society changing), differential rates of interest etc.

(iii) Statutory provides such as the interest on delayed payments act and condition .

Classification of MSME

Classification of the (MSME) Micro and Small Enterprises (manufacturing and services). It shall be under priority sector. Which regards Professional, Small Business and Self-employed persons, Small Road and Water Transport Operators, and all other service business.Under the Micro and Small Enterprises (MSME) the retail trade will not be classified .

Common MSME

  • Small road and water transport operators
  • Small business
  • Retail trade
  • Professional
  • Self-employed persons
  • Other service enterprises

Policy of MSME

  • Fiscal support
  • Credit support
  • Legislation
  • Marketing support Programmers
  • Small industry cluster based programme
  • Statistical data for decision making
  • Technology and Quality upgradation
  • Empowerment of women-owned enterprises
  • Training and Exposure

Schemes for MSME

  1. Credit linked capital subsidy scheme
  2. Scheme for registration for bar coding
  3. Credit guarantee fund scheme for MSME
  4. Lean Manufacturing competitiveness schemes
  5. Scheme for technology and quality upgradation
  6. Design clinic scheme
  7. Scheme for upgradation of information technology and communication
  8. Scheme for international co operation
  9. Scheme for technology upgradation and marketing
  10. Scheme for capacity building

Direct Finance

All loans allowed to small enterprises (SSI) regarding micro enterprises (MSME). It will be categorized under direct finance to small enterprises sector and micro .

Indirect Finance of MSME

Approval to persons related in helping the localized sector in the inputs to afford. The marketing of outputs of artisans,

The loans permitted by banks to NBFCs for on lending to Micro enterprises (MSME) and Small (SSI).

Progress to cooperatives of producers in the localized sector viz, artisans, cottage industries and village.

Active arbitrage as on 31st March 2007. It’s made by banks in specific bonds released by NABARD with the goal of investment. The MSME and SSI Registration has been specified under this act.

Online MSME Registration

The online MSME registration is to help for entrepreneurs.  The Regional Joint Director and general managers of district industries centers (DIC). The online company registration memorandum of an recognition is reasoned. It is authorized by the applicant. The same MSME registration has been submitted with four copies. It is submitted in 30 days from the date of registering online application to  the DIC/ Regional Joint Director of  Commerce and Industries.

DE- Registration of MSME

The DE- Registration of MSME needed in the following cases :

(i)  Many arbitrage limit mentioned under this act from time to time. The DE-MSME registration has been specified in their Chennai office.

(ii) A registered business enters formation of any new item or items. It requires an industrial license or other type of legal license.The both small scale industries (SSI ) and (MSME) Micro, small and medium enterprises  have their Registration in Chennai office.