Benefits of MSME

     MSME stands for Micro, Small & Medium Enterprises with the provision of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 a branch of Government of India.

     Classification of MSME is turnover based

Ø  Manufacturing Unit

1.      Micro Enterprises investment up to Rs. 25 Lacs.

2.      Small Enterprises investment more than Rs. 25 Lacs but does not exceed Rs. 5 crore rupees.

3.      Medium Enterprises investment more than Rs. 5 crore but doesn’t exceed Rs. 10 crore.

Ø  Services Unit

1.      Micro Enterprises investment up to Rs. 10 Lacs.

2.      Small Enterprises investment more than Rs. 10 Lacs. But doesn’t exceed Rs. 2 crore.

3.      Medium Enterprises investment more than Rs. 2 crore but doesn’t exceed Rs. 5 crore.

     Benefits of MSME

Ø  Industrial Promotion Subsidy

Ø  Subsidy on Patent registration (50% on Government fee)

Ø  Credit availability becomes easier and cheaper.

Ø  Lower rate of Overdraft interest.

Ø  Concession on Electricity bill.

Ø  ISO Certificate Charges Reimbursement.

Ø  Protection against delayed Payments.( outstanding Debtors and bad debts).