Following types of enterprises engaged in manufacturing sector are allowed to be registered under MSME:
Investment in Plant and Machinery is less than Rs. 25 lacs
Investment in Equipments is less than Rs. 10 lacs
Investment in Plant and Machinery is more than or equal to Rs. 25 lacs but less than Rs. 5 crores.
Investment in Equipments is more than or equal to Rs. 10 lacs but less than Rs. 2 crores.
Investment in Plant and Machinery is more than or equal to Rs. 5 crore but less than Rs. 10 crores.
Investment in Equipments is more than or equal to Rs. 2 lacs but less than Rs. 5 crores.
In service enterprises, the investment in plant and machinery should not be more than 5 crores
MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.
The rate of interest on loan offered to MSMEs is lower compared to typical business loan interest.
Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
Various governmental schemes have been introduced which provides loans to MSME / SSI without collaterals.
Business registered under MSME are given higher preference in terms of government license and certification.