Micro, Small, and Medium Enterprises (MSME)
KAPG & Associates

Micro, Small, and Medium Enterprises (MSME) registration in India is essential for businesses seeking benefits under government schemes, financial support, and subsidies. Registering as an MSME, now known as Udyam Registration, provides businesses with recognition and a range of benefits.

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Who Can Register as MSME?

Manufacturing and Service Enterprises: MSME registration is available to businesses involved in both manufacturing and service sectors.

Investment and Turnover Limits (as per the latest MSME classification):
  • Micro Enterprises: Investment up to ₹1 crore and turnover up to ₹5 crore.
  • Small Enterprises: Investment up to ₹10 crore and turnover up to ₹50 crore.
  • Medium Enterprises: Investment up to ₹50 crore and turnover up to ₹250 crore.

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Importance of TAN

Collateral-Free Loans: Registered MSMEs can access collateral-free loans under the Credit Guarantee Fund Scheme.

Subsidies and Schemes: Eligible for various government subsidies, including credit-linked capital subsidies.
Reduced Interest Rates: MSMEs can avail lower interest rates on loans from banks and financial institutions.
Tax Benefits and Concessions: May qualify for tax subsidies, exemptions, and preferential tax treatment.
Protection Against Delayed Payments: MSMEs are protected under the MSME Development Act, 2006, ensuring timely payment from buyers.
Preference in Government Tenders: MSMEs receive preference in government procurement tenders and contracts.

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Key Benefits for Registered MSMEs

Marketing Support and Promotion: Registered MSMEs can avail themselves of marketing support under the Marketing Assistance Scheme.

ISO Certification Reimbursement: MSMEs are eligible for reimbursement of expenses incurred on ISO certification.
Patent and Trademark Subsidies: Financial support for obtaining patents and trademarks, aiding intellectual property rights.
Reduced Electricity Bills: Many state governments offer reduced electricity tariffs for MSMEs.
Bar Code Registration Subsidy: MSMEs can claim subsidies on bar code registrations to promote exports and packaging standards.