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SME Registration India

SME Registration India

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories can apply for registration. MSME registration that falls under the MSMED Act facilitates promotion and development of enterprises and improves its functioning. Any type of enterprise can apply for SME registration. These includes proprietorship enterprises, enterprises managed by Hindu undivided family, enterprises run by association of individuals, co-operative societies, partnership firms and enterprises managed by companies or undertakings etc. After registration, an enterprise becomes eligible to get the benefits under the MSMED Act.

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories can apply for registration. MSME registration that falls under the MSMED Act facilitates promotion and development of enterprises and improves its functioning. Any type of enterprise can apply for SME registration. These includes proprietorship enterprises, enterprises managed by Hindu undivided family, enterprises run by association of individuals, co-operative societies, partnership firms and enterprises managed by companies or undertakings etc. After registration, an enterprise becomes eligible to get the benefits under the MSMED Act.

Enterprises falling under the three categories (micro, small and medium) are further categorized into two types of industries- manufacturing industry and service industry. The status of an enterprise under the MSMED Act is determined according to the investment slab under which an enterprise falls.

Benefits of MSME Registration in India

The MSME registration process in India has been conceptualized to provide maximum benefits to all types of enterprises. After registration, any enterprise becomes qualified to reap the benefits offered under the MSMED Act. For example, after provincial registration an enterprise can seek financial credit and also other facilities like land, industrial set-up, and water/electricity/telephone connections.

After getting registered under a competent authority, an enterprise is allotted a MSMED registration/entrepreneurs memorandum (EM) number. The concerned enterprise should get the number printed on letter heads, invoices, bills, supply order sheets and other necessary documents. The EM number helps in identification of MSE suppliers and in this case an enterprise becomes an authorised MSE supplier after registration.