Giving relief to micro, small and medium enterprises (MSMEs), the Government has simplified the registration process. Now MSMEs will only need to furnish PAN and Aadhaar to register.
Announcing the measure, MSME minister Nitin Gadkari said that once registered, MSME unit will get priority and finance.
This step will also benefit Indian textile and apparel industry as more than 70 per cent firms are MSMEs.
Majority of new firms also come in this segment and with easy registration process, they will be able to register and run business in an organised way.
The Minister said that there is a need to impart training to small units in fields of entrepreneurship and other related aspects. He also expressed hope that bank and non-banking finance companies will also provide full support to small businesses.
It is also pertinent to mention here that last year, the Government had changed the definition of MSMEs.
As per new rules, a micro enterprise is where the investment in plant and machinery or equipment does not exceed Rs. 1 crore and turnover does not exceed Rs. 5 crore, while a small enterprise is where the investment does not exceed Rs. 10 crore and turnover does not exceed Rs. 50 crore.
A medium enterprise is where the investment does not exceed Rs. 50 crore and turnover does not exceed Rs. 250 crore.
