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Msme Rules

The MSME Development Act, 2006 classifies Micro, Small, and Medium Enterprises based on investment and annual turnover, with specific thresholds set for each category. MSME registration offers various benefits including financial assistance, tax exemptions, and market support, along with key schemes like PMEGP and MUDRA. The registration process is facilitated through the Udyam Registration Portal, requiring basic documents and providing legal protections against delayed payments.

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338 views2 pages

Msme Rules

The MSME Development Act, 2006 classifies Micro, Small, and Medium Enterprises based on investment and annual turnover, with specific thresholds set for each category. MSME registration offers various benefits including financial assistance, tax exemptions, and market support, along with key schemes like PMEGP and MUDRA. The registration process is facilitated through the Udyam Registration Portal, requiring basic documents and providing legal protections against delayed payments.

Uploaded by

kuldeep singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

MSME

As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006,
MSMEs are classified based on their investment in plant and machinery/equipment and
annual turnover:

Revised Classification (w.e.f. 1st July 2020):

Category Investment in Plant & Machinery/Equipment Annual Turnover


Micro Up to ₹1 crore Up to ₹5 crore
Small Up to ₹10 crore Up to ₹50 crore
Medium Up to ₹50 crore Up to ₹250 crore

Benefits of MSME Registration

 Financial Assistance:
Access to low-interest loans.
Priority in government tenders.
Collateral-free credit under the Credit Guarantee Scheme.
 Tax Benefits:
Direct tax exemptions.
Easier access to subsidies.
 Market Support:
Marketing assistance under government schemes.
Protection against delayed payments under the MSMED Act.
 Other Advantages:
Reduced patent registration fees.
Subsidies for technology upgrades.
ISO certification reimbursements.

 Key MSME Schemes in India


 Prime Minister’s Employment Generation Programme (PMEGP):
Aims to generate self-employment opportunities through micro-enterprises.
 Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE):
Provides collateral-free loans.
 MUDRA Loan Scheme:
Offers financial support to micro-enterprises in manufacturing, trading, and
service sectors.

 Interest Subsidy Eligibility Certificate (ISEC) Scheme:

Provides financial assistance for khadi and village industries.

 Cluster Development Programme (CDP):


Supports infrastructural development for MSME clusters.
 ZED Certification Scheme:
Focuses on promoting quality and eco-friendly manufacturing.
 Digital MSME:
Encourages the adoption of digital tools for MSMEs.

 How to Register as an MSME


 Registration Process (via Udyam Registration):
 Visit the Udyam Registration Portal: https://udyamregistration.gov.in
 Documents Required:
Aadhaar card of the proprietor/partners/director.
PAN card.
GSTIN (if applicable).
 Steps:
Fill in the personal and business details.
Submit the application.
A unique Udyam Registration Number (URN) is issued.

 Key Legal Protetions for MSMEs


 Delayed Payment Protection:
Buyers must pay within 45 days of accepting goods/services.
Interest on delayed payments is 3 times the bank rate notified by RBI.
 MSME Facilitation Council:
Resolves disputes related to delayed payments.
 Tax Benefits:
GST concessions for micro and small enterprises.

 Challenges Faced by MSMEs


 Limited access to technology.
 Difficulty in scaling operations.
 Inadequate financial literacy.
 Delayed payments from large corporations.

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