MICRO SMALL AND MEDIUM ENTERPRISE ACT 2006
Earlier the concept of small-scale industries was incorporated under Micro small and medium enterprises Act 2006.
As per the MSME Act, 2006 small-scale industries are divided into -Micro, Small and Medium Enterprises, their meanings are enumerated below.
- Micro-engaged in, production of goods up to 25 lakhs or provides services for a maximum value of 10 lakh.
- Small-enterprises manufacturing goods for not less than 25 lakhs but not more than 5crore or provides services of minimum 10 lakh which shall not be more than 2 crore.
- Medium-enterprises manufacturing goods, not less than 5 crore but maximum up to 10 crore or render services not less than 2 crore but up to 5 crore.
Further, the question arises that how to apply for registration under this Act?
To be registered as MSME industries we should make an online application on government gst registration in gurgaon
The application shall be accompanied with business address proof, copies of purchase and sale bill and license from regulating bodies.
While on making application there might be two possibilities:
- Registered entities which intend to get register under this Act may apply and get PERMANENT REGISTRATION CERTIFICATE
- While on the other hand entities yet not commenced its business may apply for registration under this Act and get TEMPORARY REGISTRATION CERTIFICATE which shall be valid for 5 years.
Further, a question arises whether a Pvt. Ltd. /public Ltd. /opc in Delhi is eligible for registration under this Act?
The answer is very simple yes by complying with the above-mentioned condition and after furnishing followings documents:
- Companies pan card
- MOA & AOA and certificate of incorporation.
- Company addresses proof.
Ultimately it is important to know the advantage of being registered under this Act-
- Gets easy bank loan without collateral as government and SIDBI provides credit guarantee scheme.
- Concession in electricity bill by applying to the electricity board.
- Fast redressed of dispute on being a reference of dispute to MSME FACILITATION COUNCIL.
Objective-this Act provides the facilities to promote and develop the micro, small and medium enterprises.
Further to achieve the objective of the Act central government has the power to establish a National board for MSME and Advisory Committee.
Moreover, the function of the board is to regulate the policies and programs for the development of MSME and to take necessary steps as and when required for the purpose of increasing competitiveness amongst the enterprises.
It is also specified in the Act that the central government may regulate the program and directions to enhance the competitiveness of MSME.
The central government may also give the direction in respect of the policies and programs related to credit guarantee scheme that is provided to micro, small and medium enterprises at the time of taking a loan without any mortgage or charge which is subject to a maximum of rupees 1crore.
The person running an enterprise and intends to get its enterprise registered which is specified in the schedule 1 of Industries (development and regulation) Act 1951 shall file an Entrepreneurship memorandum of MSME.
As per the MSME ACT 2006 whenever an MSME supplier makes the supply of goods or services, the buyer shall make payment of it before the agreed date and such date shall not be later than 45days from the date the goods or services are supplied to buyer and where the buyer fails to do so, he shall be liable to pay compound interest at the rate which is 3times of rate notified by the RBI. contact us 8700591131
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