MSME stands for Micro, Small and Medium enterprises. Although MSME Registation is not compulsory, it is most desirable as it acts as your enry point for doing business and opening a bank account. If a business is registered under MSMEs act, it can avail several benefits like cheaper bank loans, tax benefits, preference during the tender process, and access to various schemes and incentives of government.

Micro Enterprise – A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

Small Enterprise – A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

Medium Enterprise – A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

Advantages:
Registering under MSME will help you reap several benefits from the government including :
1. Credit at low interest rate,
2. Incentives on products for exports,
3. Excise exemption
4. Extended credit facilities
5. Industrial extension support and services
6. Provision of training facilities
7. Access to various schemes and incentives of government.