WHO CAN APPLY FOR MSME REGISTRATION

Any entity in the form of Proprietorship/Partnership/LLP/Pvt Ltd/OPC can apply for GST Registration

Definitions of MSMEs:

As per the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 in India, MSMEs are categorized based on their investment in plant and machinery/equipment and annual turnover:

• Micro Enterprise:
  • Investment: Up to ?1 crore
  • Turnover: Up to ?5 crore
• Small Enterprise:
  • Investment: Up to ?10 crore
  • Turnover: Up to ?50 crore

• Medium Enterprise:
  • Investment: Up to ?50 crore
  • Turnover: Up to ?250 crore

BASIC REQUIREMENTS FOR MSME REGISTRATION

• COI, PAN, MOA & AOA of company
• Aadhaar Number of any one Director/ Shareholder/Proprietor
• Name of Director/Proprietor/Partner
• Social Category of any director (SC OBC ST) If any
• Physically Handicapped/(Specially Challenged) if any
• Name and type of entity
• Location of Plant or unit
• Official Address of entity as per rent agreement/electricity bill
• Date of Commencement of business
• Bank Details
• Major Activity
• Number of Person employed
• Investment in Plant & Machinery Equipment

MSME SCHEMES

PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP):

OBJECTIVE: To provide financial assistance to unemployed

BENEFITS: Bank loan with subsidy

SUBSIDY: 15% TO 35%

LOAN SANCTION AMOUNT: Rs.10 Lacs for Service Sector and Rs 25 lakhs for Manufacturing Sector

SPECIAL PRIVILEGE: (ST/SC/Women/Physically handicapped/Minorities/ex servicemen/North Eastern Region) Margin money subsidy is 35% in rural areas and 25% in Urban areas

2ND LOAN FOR UPGRADING THE EXISTING UNIT

BENEFITS: Bank loan with subsidy 15% of the project cost while the balance amount is provided as term loan

SUBSIDY: Maximum 15% of the project cost 20% for North Eastern Region (NER) & hilly region

ELIGIBILITY CRITERIA: Only successful entrepreneurs who have already availed PMEGP/MUDRA loan

MAXIMUM COST OF THE PROJECTS: Rs.25 Lacs for Service Sector and Rs 1.00 Crores for Manufacturing Sector

CREDIT GUARANTEE SCHEMES FOR MICRO AND SMALL ENTERPRISES(CGTMSE)

OBJECTIVE: To provide COLLATERAL FREE Loan

Benefits:

• Loans up to ?2 crore are backed with a credit guarantee.
• Coverage percentages vary:
• 85% for loans up to ?5 lakh for micro-enterprises.
• 80% for women-led enterprises or those in the North Eastern Region (NER).
• 75% for loans up to ?50 lakh.
• 50% for loans above ?50 lakh and up to ?1 crore.
• The loan limit under the scheme was recently increased to ?5 crore in April 2023 to broaden access for eligible MSEs

CREDIT LINKED CAPITAL SUBSIDY COMPONENT (CLCS & TU SCHEME)

OBJECTIVE: To facilitate technology upgradation including replacement of wear and tear

BENEFITS: Induction of established and improved technologies, 

SUBSIDY: 15% subsidy on institutional credit up to Rs. 1 crore with a subsidy cap of Rs 15 lakhs

ELIGIBILITY CRITERIA: Existing and aspiring entreprenuers

MAXIMUM COST OF THE PROJECTS: Rs.25 Lacs for the Service Sector and Rs 1.00 Crores for the Manufacturing Sector

Compliance Requirements:

• Valid Udyog Aadhaar Memorandum (UAM).
• Registration in the MSME Data Bank.

PROCUREMENT AND MARKETING SUPPORT (PMS SCHEME)

OBJECTIVE: To enhance the marketability of the products and services in MSME

BENEFITS: Support for participation in domestic and international trade fairs, exhibitions, and buyer-seller meets.

SUPPORT: Financial assistance for space rent and related contingencies support maximum of Rs. 1.5 lakhs for Metro and A class cities, Rs.1.0 Lakh for class B cities and 0.80 lakh for rural

ELIGIBILITY CRITERIA: Existing entrepreneurs

INTERNATIONAL COOPERATION (IC) SCHEME

OBJECTIVE: To enhance the competency by participation in international events for exploring export opportunities

BENEFITS: Reimbursement for participation/visits in international exhibition/fairs

SUPPORT: Economy class Air fare (Max Rs.1.0 lakh), Stall charges (max Rs. 1.25 lakh), freight charges (max Rs. 25000), entry registration (max Rs 5000), cost or organizing international event in India (Max Rs. 4.5 lakh), airfare for foreign speakers (minimum 3) max support Rs 2.5 lakh.

ELIGIBILITY CRITERIA: Existing entrepreneurs

ZERO DEFECT ZERO EFFECT (ZED) CERTIFICATION SCHEME

OBJECTIVE: To encourage manufacturers to produce quality products.

BENEFITS: Reimbursement for certification and consultancy fee for obtaining certificate

SUPPORT:

• ELIGIBILITY CRITERIA: Existing entrepreneurs
• AWARENESS ON INTELLECTUAL PROPERTY RIGHTS (IPR)
• OBJECTIVE: To take measures to protect business
• BENEFITS: Reimbursement for patent/GI/Trademarks
• SUPPORT: Indian Patent upto Rs 1 lakh, Foreign patent upto Rs. 5 lakh, Trademark upto Rs. 0.10 lakh, GI registration upto Rs 2 lakh
• HOW TO APPLY: View IPR Guidelines http://www.dcmsme.gov.in/schemes/ IPR-Guidelines-CLCS-TUS-2019-2020.pdf