What is MSME/SSI?
Any enterprise/industry which has invested less than INR 10 Crore in plant and machinery for doing business in the manufacturing sector of India, comes under the gamut of MSMEs or SSIs; in the service sector, any such enterprise should invest less than INR 5 Crore in plant and machinery, to fall under this broad category of industries.
The acronyms MSMEs and SSIs stand for the Micro, Small and Medium Enterprises and the Small Scale Industries, respectively. These MSMEs are regarded as being the backbone of any growing economy, and these collectively contribute substantially to the national outputs in the manufacturing and service sectors, employments, and earnings from exports. For the steady and fast growing Indian economy, the importance of these MSMEs is certainly immense. Collectively, the MSMEs of India account for around 45% of the annual manufacturing output, over 33% of its exports, and provide employment to around 35 million people. Again, the MSMEs are broadly classified into three categories (based on certain investment thresholds in the manufacturing and service sectors), which are described below separately. The foregoing gives concise information about "what is MSME/SSI?"; other pieces of information related with these, and our efficient and expert legal services for MSME / SSI Registrations in India are provided in the sections below, to help Indian and foreign entrepreneurs and investors.
MSME / SSI Registration (Micro, Small and Medium Enterprise/Small Scale Industries)For MSME/SSI registration (micro, small and medium enterprise/small scale industries), our Delhi-based full-service law firm has been one of the most popular and internationally reputed law firms of India for around a decade. These MSMEs and small scale industries covered all the following three main categories of these:
- Micro Enterprises: --- Enterprises which have invested less than INR 25 Lac in plant and machinery for doing business in the manufacturing sector, are termed as the micro manufacturing enterprises. On the other hand, the micro service enterprises are those which have invested less than INR 10 Lac in the plant and machinery, excluding investments in land and buildings.
- Small Enterprises:--- The small manufacturing enterprises are those which have invested more than INR 25 Lac but less than INR 5 Crore in their respective plant and machinery. On the other hand, enterprises which have invested more than INR 10 Lac but less than INR 2 Crore in plant and machinery for doing service in the service sector, are called as small service enterprises.
- Medium Enterprises: --- Those manufacturing enterprises which invested more than INR 5 Crore but less than INR 10 Crore in the manufacturing plant and machinery, are called as the medium manufacturing enterprises. On the other hand, those enterprises which invested more than INR 2 Crore but less than INR 5 Crore in plant and machinery for providing services in the service sector, are known as the medium service-providing enterprises.
As per the revised definition, eligibility criteria for MSME registration have been reclassified in terms of Investment and Annual Turnover as follows:
- Any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as "Micro".
- A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as "Small" and
- A firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as "Medium"
All above three types of enterprises are registered and prospered by our prestigious and innovative law firm in the sectors of manufacturing and services in places across the country.
Exclusive information about how to register msme/ssi in india, is being presented in the section just below. At this juncture, noteworthy also is the fact that the following economic fields of India are considered as being very progressive and lucrative for setting up MSMEs --- computer software & hardware; food products; textiles and garments; basic metals and various metal products; chemicals and chemical products; machine tools and machine parts; rubber and plastic products; wood products; and many other thriving fields of Indian economy.
MSME / SSI Registration Procedure
MSME/SSI registration procedure is to be carried out either with the District Industries Centre (DIC) or with the Directorate or Commissioner of Industries of the concerned State. Again, in every State of India, there are available two categories of registrations for the small scale industries. These categories of registration offer the Provisional Registration Certificate (PRC) and the Permanent Registration Certificate. The PRC is valid for a maximum period of Five years, while the permanent registration lasts as long as the industry runs.
Veteran, well-informed, and expert company lawyers of our prestigious law firm of India support the interested entrepreneurs and industrialists during the whole registration process, and make all requisite filings and documentary submissions. Again, our mellowed layers also offer expert and viable advisory services regarding establishment of any MSME anywhere in entire India by Indian and global investors. Their advisory service covers Business planning and market research, registrations with regulatory bodies, financial assistance from any industrial or commercial bank, setting up production infrastructure, recruitments of workforce, and distribution and marketing of the finished goods or products.
MSME Registration Benefits in India
Registering any MSME is not mandatory, however, getting it registered properly under the MSMED Act offers many lavish benefits and advantages to the investors. The main and outstanding MSME registration benefits in india, are the following:
- Governmental Subsidies and Incentives: --- Both the Central and State Governments offer certain subsidies and incentives to the registered MSMEs, for stability and growth of these. These include capital investment subsidies, preference in respect of the desired licenses and certifications, tax exemptions, incentives to certain economic fields, no or low interest on delayed payments, power tariff subsidies, etc.
- Easy, Cheap, and Fast Bank Loans: --- The rate of interest on bank loans provided to MSMEs is 1-1.5% lower than the interest charged on typical business loans. Again, the Mudhra Loan Scheme launched by PM Modi facilitates loans to MSMEs without any collaterals.
- Tax Exemptions and Rebates: --- These relate to direct taxes, excise and custom duties, capital gain tax, VAT and sales taxes, etc.
- Economical Infrastructure: --- State Governments offer certain facilities for establishments of MSMEs, such as easy set-up of industrial estates, power tariff subsidies, VAT exemptions, priorities in the registration and protection to intellectual property rights, etc.
- Access to Governmental Tenders: --- Often many lucrative governmental tenders are kept open only for MSMEs, to promote profits and growth of small scale industries in India.