About MSME Registration

MSME Stands for Micro, Small and Medium Enterprises it facilitates development & promotion of enterprises through various benefits & schemes. Small enterprises play an essential role in improving the economy of any country. To encourage new and existing companies/businesses, the Government of India has launched numerous programs to help small and medium-sized enterprises to grow. To take advantage of all those beneficial schemes, you need to obtain your MSME registration. The MSME registration is also known as the Udyam registration.

Eligibility for MSME Registration

# Micro MSME Enterprises:-It is an enterprise whose investment is < INR 1 crore and annual turnover is < INR 5 crores.

# Small MSME Enterprises:- It is an enterprise whose investment is < INR 10 crore and annual turnover is < INR 50 crores.

# Medium MSME Enterprises:- It is an enterprise whose investment < INR 20 crore and annual turnover is < INR 200 crores.

When to Register under MSME?

If someone wants to avail benefits from Central or State Government and the Banking Sector then MSME Registration is required.

Who Monitors MSME Registration?

It is governed by MSMED Act 2006 in India under the Ministry of Micro, Small and Medium Enterprises.

How MSME Registration Helps My Business?

1. Low-Interest rate- All banks and other financial institutions recognize MSMEs and have created special schemes for them. MSME's get the privilege of lower interest rate on business loans.

2. Relaxation in Trademark Government Fees-Government has given relaxation in Government fees of the trademark to MSME registered entities. The fee shall be ₹ 4500/- for small enterprises despite trademark fee for enterprises other than MSME's is ₹ 9000/-.

3. Credit Support Schemes- Government of India runs several schemes to provide financial assistance to MSME for their business.

4. Tender Eligibility- There is a certain quota reserved for MSME Registered Entity in Government tender allotment.

5. No delayed payment- If an MSME entity has made any sale then the buyer has to pay to the MSME's entity within the 45 days from the date of delivery of product or services.

6. Easy loan in 59 minutes - Recently, the Government has announced that all MSMEs having MSME Registration and GST registration will be granted easy up to ₹ 5 crores within 59 minutes. This scheme has been discussed below in detail.

Special Reliefs for MSME Amid COVID-19

Due to the COVID-19 crisis, the Government has introduced the Atmanirbhar Bharat Relief Package. Under this Government has given certain reliefs to Indian MSMEs:-

1. ₹3 lakh crores Collateral free Automatic Loans to be provided to MSME Businesses, for a period of 4 years.

2. ₹20,000 crores Subordinate Loan to the MSMEs.

3. ₹50,000 crores equity infusion to be done through MSME “Fund of Funds”.

4. Know more about Relief of MSMEs.

Difference between MSME Registration & Udhyam Registration

1. There is a myth that MSME registration and Udhyam Registration are two different registrations. The MSME Registration is regulated by the ministry of micro, small and medium enterprises to protect MSME rights and ensure them additional benefits and facilities over large enterprises.

2. Later on, a better version of MSME Registration was launched with the name of Udhyam Registration for MSMEs with different eligibility criteria.

3. In a nutshell, the purpose of Udyam registration and MSME Registration is the same for development & promotion of MSME enterprises.

Government Schemes for MSME

There are several state and central schemes for MSMEs benefits that will help you avail of credits, pre approved loans, and subsidies from the Government.

# Prime Minister Employment Generation Programme and Other Credit Support Schemes

1. Prime Minister Employment Generation Programme(PMEGP)

This scheme was executed by the Khadi and village industries commission as the nodal firm at the national level. Any individual above 18 years with an 8th standard pass can apply for it.

2. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)

This scheme was established With the joint venture of the Ministry of Micro, small, and Medium Enterprises and Small Industries development bank of India (SIDBI). The motive was to implement a credit Guarantee for Micro, Small enterprises. Existing and new entrepreneurs are eligible for this scheme.

3. Interest Subsidy Eligibility Certificate (ISEC)

This ISEC scheme is a crucial mechanism of raising khadi programme undertaken by khadi institutions and it was basically launched to gather funds from banking institutions. Anyone can apply having a valid khadi certificate.

# Development of Khadi, Village and Coir Industries

1. Science and Technology Scheme

The science and Technology Scheme plays an important role as its motive is to provide opportunities to motivate scientists, engineers, and field activities. Anyone can apply holding a post-graduation degree, M.phil, M.pharma, and minimum of 27 years of age.

2. Market Promotion & Development Scheme (MPDA)

The MPDA scheme was launched as a combined scheme by consolidating different schemes implemented by the khadi sector. Anyone can apply having a valid khadi certificate.

3. Revamped Scheme Of Fund for Regeneration Of Traditional Industries (SFURTI)

The primary objective of this scheme is to raise the traditional enterprises to make them competitive and provide assistance for long-term sustainability. NGOs, Institutes of central/state, or Semi-Government institutes can apply for it.

4. Coir Vikas Yojana (CVY)

This scheme visualizes an extended range of activities like skill development of artisans, Mahila coir Yojna, or to up-gradation of new units under the coir industry.

5. Science and Technology (S&T) for Coir

This scheme's objective is to expand the outcomes of research and testing services at the laboratories. The R&D activities of the board are carried out through the twin research institutes. Manufacture/Entrepreneurs/Coir workers can approach research centers to avail assistance.

6. Skill Upgradation & Mahila Coir Yojana (MCY)

The Skill upgradation & Mahila coir Yojna is the one the main components under the Coir Vikas Yojna as this scheme provides training in processing of coir and value addition to potential workers. Coir artisans and workers engaged in the coir industry can apply for it.

7. Export Market Promotion (EMP)

The coir board is executing export marketing promotion with an objective to grow the export performance of the Indian coir sector through various export marketing promotions. Manufacturers, entrepreneurs, and exports of coir can apply for it.

8. Domestic Market Promotion Scheme (DMP)

In this execution of Coir industry act 1953, coir board has been conducting various measurements for popularizing coir products, also expanding in the domestic market. Public Sector Enterprises, franchisees appointed by the Coir Board in the coir industry can apply for it.

9. Trade and Industry Related Functional Support Services (TIRFSS)

The basic motive of this service is the collection of statistical data pertaining to various points like productivity, labor infrastructure, raw material, marketing, etc.

10. Welfare Measures (Pradhan Mantri Suraksha Bima Yojana (PMSBY))

Coir board had implemented coir board workers group personal accidental insurance scheme for the benefit of the coir workers in the country which aims to provide insurance coverage against accidental death, permanent disability. People Employed under the SFURTI coir clusters, coir workers engaged in the units already registered with the Board can apply to go for it.

# Technology Upgradation and Quality Certification

1. Financial Support to MSMEs in ZED Certification Scheme

The primary objective of this scheme is to promote Zero defect & Zero Effect practices in manufacturing processes which ensures continuous improvement and support in the Make in India initiative.

2. A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

The motive of this scheme is to reduce unemployment and create new jobs, promote entrepreneurship culture in India, boost grassroots economic development.

3. National Manufacturing Competitiveness Programme (NMCP)

This program was launched by the Government of India to improve competitiveness among the Indian MSME. All the MSME units can apply for it.

4. Credit Linked Capital Subsidy for Technology Upgradation

CLCSS provides a 15% subsidy for additional investment of up to 1 crore for the technology upgradation by msmes. Any MSME can apply for it.

5. Marketing Support/Assistance to MSMEs (Bar Code)

In this scheme the ministry conducts webinars or seminars to encourage MSMEs to use barcodes.

6. Lean Manufacturing Competitiveness for MSMEs

The primary motive of this scheme is to enhance the manufacturing competitiveness of MSMEs within the application of various lean manufacturing techniques, and this scheme is open for all the manufacturing MSMEs.

7. Design Clinic for Design Expertise to MSMEs

This scheme is to enhance the competitiveness of MSMEs by various adoption of design and its learning. Expert agencies or MSMEs can go for it along with the design companies.

8. Technology and Quality Upgradation Support to MSMEs

The motive of this scheme is to promote the use of energy-efficient technologies, especially in manufacturing units to reduce the overall cost of production.

9. Entrepreneurial and Managerial Development of SMEs through Incubators

This scheme provides early-stage funding to nurture innovative business ideas that could possibly be commercialised in a year. Any individual or MSME with innovative ideas can apply for it.

10. Enabling Manufacturing Sector to be Competitive through QMS&QTT

This scheme promotes and encourages MSMEs to adopt as well as understand the latest quality management standards which include quality technology tools.

11. Building Awareness on Intellectual Property Rights (IPR)

The intention of this scheme is to heighten awareness between the MSMEs regarding intellectual property rights, to take measures of protecting their ideas and business plans.

# Marketing Promotion Schemes

1. International Cooperation

This scheme's objective is to organize international conferences/summits/seminars in international exhibitions as well as in India for MSMEs by Industry associations and Government organizations.

2. Marketing Assistance Scheme

The marketing assistance scheme provides assistance to organize exhibitions abroad & participation in international trade fairs. Also, organizing buyer-seller meets and marketing promotion activities.

3.Procurement and Marketing Support Scheme (P&MS)

This scheme covers the activities to encourage micro, small enterprises to develop domestic markets and promotions of new market access initiatives as well as facilitate marketing linkages, or to create overall awareness about trade fairs.

# Entrepreneurship and skill Development Programme

1. Entrepreneurship Skill Development Programme (ESDP)

Entrepreneurship Development Programmes work is to nurture the talent of youth, explaining them on various aspects of industrial activity required to setting up MSMEs.

2. Assistance to Training Institutions (ATI)

The motive of this is to provide assistance to national-level training institutes operating under the Ministry of MSME.

# Infrastructure Development Programme

1. Micro & Small Enterprises Cluster Development (MSE-CDP)

The Ministry of Small, Medium enterprises have adopted a cluster development approach to enhance productivity and competitiveness as well as the capacity building of MSME. This scheme also supports financial assistance for the establishment of common facility centers.