MSME Renewal
The government of India provides a MSME registration to the Micro, Small and Medium (MSME) industries. The MSME registration helps MSMEs to obtain various benefits provided by the government for their establishment and growth. MSME industries are the backbone of the economy. They are known as Small Scale Industries (SSIs).
The MSME registration is entirely online and can be obtained from the Udyam registration portal. It is not mandatory for MSMEs to obtain this registration but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.
What is MSME classification?
Initially, when the government introduced the MSME registration in 2006, the MSME classification was based on the investment criteria in plant and machinery or equipment. The government revised the MSME classification by inserting annual investment and annual criteria. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed.
The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding if an entity is considered as an MSME:
Revised MSME Classification | |||
Criteria | Micro | Small | Medium* |
Investment & Annual Turnover | < Rs.1 crore & < Rs.5 crore | < Rs.10 crore & < Rs.50 crore | < Rs.50 crore & < Rs.250 crore |