What is MSME
MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006,
The enterprises are classified into two divisions.
1. Manufacturing enterprises –engaged in the manufacturing or production of goods in any industry
2. Service enterprises – engaged in providing or rendering services
-Classification as Micro, Small and Medium Enterprises
An enterprise can be classified as Micro, Small and Medium, based on their investment and turnover
1. MICRO ENTERPRISE
Investment upto 1 crore
Turnover upto 5 crore
2. SMALL ENTERPRISE
Investment upto 10 crore
Turnover upto 50 crore
3. MEDIUM ENTERPRISE
Investment upto 20 crore
Turnover upto 100 crore
-Benefits of Getting registered under MSME
1. Collateral- free Bank Loans/credit facilities are available
2. 50% Subsidy on patent registeration
3. Overdraft Interest rate exemption of 1%, which may differ from bank to bank.
4. Eligibility for subsidy for Industrial promotion.
5. Protection against delayed payments
6. Fewer Electricity Bills
7. ISO Certification expenses reimbursement.
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