MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions.
a. Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
b. Service enterprises – engaged in providing or rendering services.
*As per the notification of MSME dated 26.06.2020, Udyam Registration is the new process of MSME/UDYOG AADHAAR Registration launched by the Ministry of Micro, Small, and Medium Enterprises effective from July 1, 2020
Composite Criteria: Investment and Annual Turnover
|Manufacturing & Services||Investment < Rs 1Cr and turnover < 5Cr||Investment < Rs 10Cr and turnover < 50Cr||Investment < Rs 50Cr and turnover < 250Cr|
MSMEs have received a lot of attention from the government in recent times in terms of regulatory measures, reliefs and benefits.Consequently, the eligibility criteria along with the incentives offered to the MSME sector as regards to their financing have been lucrative to businesses across the country. Additionally, with various schemes introduced for revival and upliftment of MSMEs, banks and financial institutions have started to zero in on the MSME segment. Although this usually-overlooked division of borrowers is becoming a more favorable client base, there are many uncertainties around the concept of MSME and the benefits associated with MSME financing. ICI can assist you with various MSME associated financial services including debt financing, equity financing, invoice financing, tax compliances, etc.
We often hear from our fellow entrepreneurs complaining that clients are either not paying on time or simply avoiding payments. This is a significant problem, especially if you are dealing with Indian customers. Thankfully, the Indian government has strong provisions in place to protect the payments of registered Micro, Small or Medium Enterprises (MSMEs). ICI can help you with IBC and GST disputes along with alternative methods for recovery of your funds with debtors and other third parties.