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MSME stands for Micro, Small and Medium Enterprises. These entities plays crucial role in development and employment generation. Registration under the MSMED Act is optional. It provides Micro, Small and Medium sized enterprises with a benefits such as concessional bank finance, tax benefits and access to a range of subsidies and schemes.
MSME Registration can be obtained by business in the manufacturing or service sector.
Micro manufacturing enterprises have investment of less than Rs. 25 lakh in plant and machinery, while micro service enterprises have less than Rs. 10 lakh invested.
Small manufacturing enterprises have between Rs. 25 lakh and Rs. 5 crore invested in plant and machinery, while small service enterprises have investments between Rs. 10 lakh and Rs. 2 crore invested.
Medium manufacturing enterprises have investments between Rs. 5 crore and Rs. 10 crore invested in plant and machinery, while small service enterprises may have between Rs. 2 crore and Rs. 5 crore invested.
1. Enterprises registered with the MSMED Act enjoy interest rate concession and their borrowing is classified under Priority Sector Lending.
2. Registered Enterprises are allowed to avail a number of subsidies and schemes floated by the State and Central Government e.g. subsidy for ISO, subsidy for participation in tradeshows etc