MSME stands for micro, small and medium enterprises, and these are the backbone of any developing economy. To support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
Micro, Small and Medium Enterprise Registration or MSME Registration or Small Scale Industry (SSI) Registration is the latest focus area of Government of India (and across the globe). The major advantage of MSME/SSI Registration is that government offers many a subsidies, tax rebates and scopes to MSMEs.
MSME can be a manufacturing firm, Service Sector Company or an IT company and the registration can be done under the MSMED Act. MSME registration is not a mandatory requirement but it is really helpful for small and medium enterprises because of myriad advantages. MSME are entitled to various grants, tax rebates, sops from Government and it makes sense for any company to explore this path as well.