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MSME is a government registration that is provided along with a recognition certificate and a unique number in order to certify small/medium businesses or enterprises.
The central motive behind the launch of this facility was to offer a way to the government to provide the maximum benefits to medium or small-scale businesses or industries in India, who are registered via MSME through their Aadhar Card Number.
The owner, director or proprietor of the entity will provide his/her 12-digit Aadhar Number, whether the enterprise or entity is a sole proprietor, an LLP, a Private limited company or anything else. It should have the recognition certificate provided via the MSME registration process.
MSME are classified into two categories:
In case of Manufacturing Units, that concerned units will be considered for the same if, investment in its Plant & Machinery (excluding land & building)
In case of Service Rendering Units, that concerned units will be considered for the same if, investment in its Plant & Machinery (excluding land & building)
All banks and other financial institutions recognize MSMEs and have created special schemes for them. MSME's get the privilege of lower interest rate on business loans.
Government of India runs several schemes to provide financial assistance to MSME for their business. Also there is a certain quota reserved in government tender allotment.
Government has given relaxation in government fees of the trademark to MSME registered entities. The fee shall be Rs 4500/- for enterprises after MSME instead of the normal Rs 9,000/-
If an MSME entity has made any sale then the buyer has to pay to the MSME's entity within the 45 days from the date of delivery of product or services as they always being preferred.
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