Micro, Small & Medium Enterprises (MSME)
All About MSME
Long Post Alert - To get all the MSME benefits one has to register first and apply for a Udyog Aadhaar...
WHY SHOULD I APPLY & WHAT BENEFITS I CAN GET?
- Credit Facilities without Collateral (Schemes discussed below)
- Capital Subsidies for various manufacturing and service sector units
- Incentives for various manufacturing and service sector units
- 1 % Interest Reduction on Overdraft Loans and other loans
- Startup India Scheme for Innovative Companies - 3 out of 10 Years - No Income Tax to be paid - Allowed as Deduction - Companies up to 10 Years in Existence are still considered Startup - This is Free
- Generator Subsidy
- Concessions on Electricity Bills
- Subsidy on Patent Registration and few Trademarks
- ISO Certification Charges Reimbursement
- MDA Scheme for Registration for Bar Coding
- Special Incentives for Companies Manufacturing COVID-19 Products like - COVID Testing Kits, Sanitizers (Alcohol Based), Ventilators, PPE Kits, 3Ply Surgical Masks, KN95 Masks/ N95 Masks, Hospital Mattresses & Pillows, Multipara Monitors, Medical Oxygen
- Allows credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- There are many government tenders which are only open to the MSME Industries
- Business registered under MSME is given higher preference for government license and certification.
- Support if you are starting an Incubation Center.
- Incentives for Employment Generation
FOR PAYMENT RECOVERY BEYOND 45 DAYS FROM CLIENTS/BUYER
Apply if you are facing issue with Non Payment on MSME SAMADHAAN Portal - Govt will help in recovering the amount outstanding - Lot of them have got their long-pending money back
VARIOUS SCHEMES BY CENTRE
CREDIT AND FINANCIAL ASSISTANCE SCHEME
- Prime Minister’s Employment Generation Programme (PMEGP)
- Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
INFRASTRUCTURE SUPPORT TO MSME'S
- Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
- MSE Cluster Development Programme (MSE-CDP)
TECHNOLOGY UPGRADATION AND COMPETITIVENESS SCHEME FOR MSMSE'S
- Design Clinic Scheme
- Lean Manufacturing Competitiveness Scheme (LMCS)
- Digital MSME Scheme
- Financial Support to MSMEs in ZED Certification Scheme
- Support for Entrepreneurial and Managerial Development of MSMEs through Incubators
- Tool Rooms & MSME Technology Centres
FREQUENTLY ASKED QUESTIONS
Q. Is MSME updated to Udyog Aadhar?
A. Yes, MSME registration has been replaced with the Udyog Aadhar registration. If any micro, small and medium industries want to start any business; they need to do the registration with MSME/Udyog Aadhar
Q. Is Aadhaar card compulsory?
A. Yes, For registration under the Udyog Aadhar scheme, the AADHAR card is compulsory for a Sole Prop. In case an applicant is other than the proprietor, the Aadhar card of the partner and the director will be required.
Q. Can existing and new businesses both apply?
A. Yes, an existing and new business can apply for MSME/Udyog Aadhar registration. Provided the existing unit is functioning and meets the threshold limits for registration under MSME - Criteria for an MSME has been revised now - Check
Q. What is the validity of the certificate?
A. There is no expiry of the Udyog Aadhar Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.
Q. Can Trading companies (Who just buy and Sell) can register under MSME?
A. No, MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.
Q. Do I need multiple registrations for manufacturing plants in different cities?
A. No, The MSME/Udyog Aadhar certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.
Q. What are the activities specifically excluded from coverage under MSME?
A. Ministry of Micro, Small and Medium Enterprises (MSME) has clarified as per notification S.O 2576 (E) dated 18.09.2015 and subsequent notification no S.O 85(E) dated 10.1.2017, activities that would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act.
- Forest and Logging
- Fishing and aquaculture
- Wholesale, retail trade and repair of motor vehicle and motorcycles
- Wholesale trade except for motor vehicles and motorcycles.
- Retail Trade Except for Motor Vehicles and motorcycles
- Activities of households as employees for domestic personnel
- Undifferentiated goods and services-producing activities of private households for own
- Activities of extraterritorial organizations and bodies
The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per msme.gov.in)
To Apply for Govt Schemes - It needs Patience, the right person to be contacted - I am not an Expert in all theses scheme - I just know few things hence compiled everything above for the benefit of all
Feel free to reach in case you have any clarifications - If I am not able to answer - Will try to get answers from the right authority and discuss
Also kindly comment if you have availed or got any of the benefits under any of the above MSME Schemes so that it will benefit and give confidence to others that even they can apply and benefit
Every Penny Saved will help you in the Future
Why Not Avail Things When You get it for Free ?
What's Your Reaction?
