Micro,
Small and Medium Enterprises (MSME) has been a backbone of the economic growth over
the last few decades. MSMEs play crucial role in providing large employment
opportunities on low investments thereby reducing the major employment problems
and also help in industrialization of rural & backward areas. Government in
order to support and promote the small business has extended relaxations to
MSMEs through various subsidies, schemes and incentives. Government have been
regularly proposingamendments for the smooth operations of small business.
In this article, we are going to
brief you some of the developments in
this sector as follows:
1. MSME registration process is most simplestby filling up only one
page i.e., Udhyogaadhaar memorandum to get the unique UdyogAadhaar Number (UAN)
without any documents in support and also no fees is charged. Certificate of Registration
will be issued within 24 hours
2.
In
the Union Budget 2018, corporate tax rate for the small enterprises
was lowered from 30% to 25%
3.
MSME
which have obtained Quality Management Systems ISO 9001 and/or Environment
Management Systems ISO 14001 and /or Food Safety Systems certifications are
allowed to claim the reimbursement of 75% of the certification expenses up to
max limit of Rs.75,000
4.
Government
of India has launched Credit Guarantee Fund Scheme for MSME under which banks
shall provide Collateral free loan
5.
50%
subsidy for SSI registration
can be availed by MSME by making an application to the Ministry.
Nowadays,
multiple digital marketing strategies are also implemented by the organization
in order to achieve maximum return on investment. MSME are also implementing the strategies
which big organizations uses in order to increase their visibility in the
market.
The
central bank has also raised the 90 days window in terms of NPA to 180 days.
This has extended the classification of loans as Non-Performing assets or bad
loans for the small business.
Recently
the Cabinet has approved to change the criteriafor classifying MSMEs. It proposes
to define MSME Registration
on the basis of annual sales turnover rather than on investment basis. Now
there is no distinction between manufacturing and service unit.
The
proposed thresholds are:
·
1.Turnover
upto 5 crores- MICRO ENTERPRISE
·
2.
Turnover upto 75 crores- SMALL ENTERPRISE
·
3.
Turnover upto 250 crores- MEDIUM ENTERPRISE
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