Micro, Small and Medium Enterprises Development Act, 2006 was passed to facilitate the development of Micro, Small and Medium Enterprises (MSMEs). MSMEs are the backbone of the economy. Government has defined MSMEs differently for Service and Manufacturing Sectors. The definition of MSME in the service sector is based on the investment made in equipment and the definition of MSME in the manufacturing sector is based on the investment made in plant and machinery. The definition differentiates Micro, Small and Medium Enterprises depending upon their investments.
MSME registration is not compulsory for businesses. However, it is always advisable to register under MSME scheme as it is beneficial for business and provides a range of benefits like a lower rate of interest, the exemption in excise, tax subsidies, rating subsidies, capital investment subsidies, etc. The Biz Solution can help you to get your MSME registration.
Micro, Small and Medium-sized Enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI registration under the MSMED Act. Although getting MSME registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.