MSME Registration for Startups – Benefits | New Topic [2024]

In this note, we are going to talk about the MSME Registration for Startups and Benefits of MSME Registration. Welcome to Poly Notes Hub, a ultimate solution for Engineering Notes.

Author Name: Arun Paul.

What is MSME Registration?

The process of registering a company as a Micro, Small, or Medium Enterprise (MSME) with the appropriate government agency is referred to as MSME registration. The Ministry of Micro, Small, and Medium Enterprises (MSME) in India is in charge of overseeing MSME registration, which is intended to encourage and assist the expansion of small-scale businesses and industries.

A company must meet specific requirements based on its annual turnover and investment in plant, machinery, or equipment in order to register as an MSME in India. The government makes periodic revisions to these requirements.

Classification as an MSME in India

1. Micro Enterprises: Companies that manufacture or produce things are classified as micro-enterprises if they invest less than INR 1 crore (about USD 135,000) in plant and machinery. The investment cap for service-oriented businesses is INR 10 lakh, or roughly USD 13,500.
2. Small Enterprises: For manufacturing businesses, small enterprises are defined as those with plant and machinery investments between INR 1 crore and INR 10 crores (about USD 135,000 to USD 1.35 million) and between INR 10 lakh and INR 2 crores (around USD 13,500 to USD 270,000) for service-based organizations.
3. Medium Enterprises: Plant and machinery investments made by medium-sized businesses range from INR 10 crores to INR 50 crores (roughly USD 1.35 million to USD 6.75 million) for manufacturing companies and from INR 2 crores to INR 5 crores (roughly USD 270,000 to USD 675,000) for service-oriented businesses.

Benefits of MSME Registration

Here are the Top 10 benefits of MSME registration –

1. Access to government schemes and subsidies.
2. Priority lending from banks.
3. Credit Guarantee Fund Scheme eligibility.
4. Favorable policies and regulations.
5. Enhanced market access and networking opportunities.
6. Subsidized intellectual property protection.
7. Streamlined administrative processes for ease of doing business.
8. Preference in government tenders.
9. Increased credibility and global recognition.
10. Access to support programs, including incubation centers and mentorship initiatives.