MSMEs have been facing stress ever since the country entered a lockdown due to COVID-19. Businesses were shut, salaries delayed and cash crunch was a reality.
Finance Minister Nirmala Sitharaman on May 13 announced measures to help support and revive the micro, small and medium enterprises (MSMEs) battered by the COVID-19 outbreak under Atmanirbhar Bharat package.
The measures taken by the Finance Ministry include,
Now both manufacturing and servicing enterprises will be under one segment. Firms with less than Rs 1 crore investment and below Rs 5 crore turnover will be called micro entities while those with below Rs 10 crore investment and less than Rs 50 crore turnover will be small entities. Medium entities will be those with less than Rs 20 crore investment and turnover below Rs 100 crore.
Businesses/MSMEs have been badly hit due to COVID19 need additional funding to meet operational liabilities built up, buy raw material and restart business
Decision: Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit as on 29.2.2020
MSMEs face severe shortage of Equity.
Global tenders to be disallowed upto Rs 200 crores
Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, Global tenders will be disallowed in Government procurement tenders upto Rs 200 crores.
MSME contractors may also be benefited here
Udyog Aadhar or MSME Registration can be taken by any type of business entity in India. a Sole Proprietorship , Partnership Firm, LLP, Company, Hindu Undivided Family, Association of Persons, Co-operative societiey and Self Help Group.
Eligibility Criteria based on Maximum ceiling limit of Investment made for Plant & Machinery ( in case of Manufacturing Industry) and Equipment ( for Service Industry) and MSME Clasification is based on Investment amount.
Only those entities that can be classified as a micro, small or medium enterprise under the following criteria as per the MSMED Act, 2006 is eligible to take Udyog Aadhaar number .
New Definition of MSME as announced by Hon's Finance Minister dated 13th February 2020 under atmanirbharta bharat abhiyan to boost economy and employment -
Though your entity is fall under micro, small or medium as per the Act, it is not madatory to take registration. You take the Registration voluntarily any time provided you have the Aadhar Number, PAN and Bank Account at the time of registration.
MSME registered Business can avail benefits of all the government schemes such as an easy loan process under various scheme for MSME, loans with subsidised rates of interest etc.
The Micro and Small Enterprises are also eligible for collateral-free loans up to Rs. 1 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE Scheme). This is a collateral free loan and the Central Government takes guarantee of the borrower and To improve the timely funds’ availability to the MSME Sector, the Government of India has classified loans to Micro and Small Enterprises under priority sector lending.
Govt. Fee Concession
50% Govt fee concession in filing of Trademark and Patent registration.
Bank Account Opening
Facilitate hassle-free opening of current bank accounts in the name of the business.
Support Assistance in Foreign Expo
Receive financial support for participating in foreign expos to showcase their products.
Micro and Small enterprises also enjoy Other Subsidies from State Governments such as extended credit facilities, Industrial extension support, and services, Assistance in marketing, Assistance for construction of industries in underdeveloped areas, Technical consultancy, assistance in the capital, Excise exemption and Exemption under direct tax laws etc.
Udyog Aadhar ( MSME)
Amendment of MSME Registration
New Udyog Aadhar Registration with One Trademark
New Udyog Aadhar Registration with Startup India Recognition ( apply for Pvt Ltd, OPC, LLP & Regd Partnership Firm)
TO AVOID ANY ERROR OR MISTAKE, IT SUGGESTED TO TAKE THE SERVICE OF CONSULTANT. WE HELP YOU TO GET THIS DONE SMOOTHLY.