MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. These industries are also known as small-scale industries or SSI's.

According to the government of India, the Micro, Small and medium enterprises Act, 2006 are defined as below:

In a micro enterprise, the investment done on machinery and plant ranges between 10 lakh to 25 lakh. An enterprise where the investment on plant and machinery is over 25 lakh but does not exceed Rs. 5 crore, for small services between Rs. 10 lakh to Rs. 2 crore.

A medium enterprise is one where the investment in the plan and machinery is between Rs. 5 crore to Rs. 10 crore, for medium service between Rs. 2 crore to Rs. 5 crore.

The MSME plays important role in India's legacy economic model. This sector is considered to be providing a huge number of jobs as well as a job creator in the rural areas.

There is no mandatory mention of getting an online registration done for MSME done, but it is always suggested to get it done because of the various benefits it provides, such as the rate of interest charged would be relatively lower, capital investment subsides, tax subsidies and a lot of support from the government sector.

SAR TAX BUDDY will assist you in getting your business an online registration for MSME to utilise benefits.

Type of MSME'S

There are 3 types of MSME or SSIs which can be classified as below

ADVANTAGES

• Loan Priority:

As per the Reserve Bank of India's instructions, banks are required to have a certain amount of funds available to MSME businesses. The MSME certificate gives you preferential access to this loan.

• Higher interest rates across multiple banks:

MSME registration gives you access to business loans at lower interest rates across multiple banking options.

• Income Tax Exemption:

MSME Certificate can save you a lot of taxable money. It also frees you from maintaining detailed accounting records and performing audit procedures.

• Credit-Based Guarantee System:

This system provides unsecured and unsecured loans of up to Rs 50 million to individual MSMEs. According to the Emergency Credit Line Guarantee Program.

• Government Market Support and Export Promotion:

Holding an MSME certificate gives you access to all these platforms for international collaboration in trade-related aspects with many countries, building new business relationships. The government is also promoting export of goods and services by MSMEs.

• ISO Certification Rebate:

All registered micro, small and medium enterprises can claim exemption from all fees incurred in obtaining ISO 9000, ISO 14001 and HACCP certifications.