The MSME or Design? Who does not love licenses? Of course, everyone loves to get its own identity approved by the government and execute their respective business through licenses. As being one of the early businesses in the industry, getting recognized by the government through license is one of the important honour which any business desires.
MSME– Let us get clear with the full form. It is an abbreviation for Micro, Small & Medium Enterprises. It is the pillar of economic growth in many developed and developing countries in the world. MSME has been appreciated for creating employment opportunities and is termed as “the engine of growth” for India. It has played a prominent role in the development of the country and has employed more than 50 million people, scaling manufacturing capabilities, curtailing regional disparities, balancing the distribution of wealth, and contributing to the GDP-MSME sector forms 8% of GDP. MSME has a tremendous growth though India is still facing infrastructural problems, lack of proper market linkages, etc.
Micro Enterprises: These are the smallest entities because they have less than Rs. 10 lakh invested in equipment while Micro manufacturing enterprises have an investment of less than Rs. 25 lakh in plant and machinery.
Small Enterprises: Small Manufacturing Enterprises Invest in plant and machinery between Rs. 25 lakh and Rs. 5 crores while small service enterprises invest in equipment between Rs. 10 lakh and Rs. 2 crores.
Medium Enterprises: Medium manufacturing enterprises invest in plant and machinery may have between Rs. 5 crore and Rs. 10 crores while small service enterprises invest in equipment between Rs. 2 crore and Rs. 5 crores.
There are some points to be noted for manufacturing entities. The land and building cannot be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account; depreciation cannot be factored in.
Any business entity may apply, be it a partnership or a company. Sole proprietors may also apply.
What are the main objectives of the registration scheme?
- The package of incentives and support which are targeted is tallied and a roll of the small industries is maintained thoroughly.
- Enabling the units to avail the statutory benefits mainly in terms of protection by providing the certificate.
- To help serve the purpose of collection of the statistics.
- To help create nodal centres at the centre, the state and the district levels to promote SSIs.
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