Get Your Licenses Right Entrepreneurs!

The small and medium enterprises (SMEs) are accepted worldwide as the engine of economic growth. They help in promoting equitable development. High employment potential at low capital cost is the major advantage offered by the sector. The labour intensity of the SME sector is much higher than that of the larger enterprises.

SMEs constitute over 90 per cent of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. They play a pivotal role in the overall industrial economy of India too. In recent years, the SME sector has consistently registered higher growth rate compared to the overall industrial sector. 

Grab your licenses on time

SMEs located anywhere in the world need to be registered with their concerned governments. They are required to register under the concerned act governing their existence. For example, in India, the agencies have to be registered under MSMED (Micro Small Medium Enterprise Act) 2006 which categorises SMEs as per the nature of activity. Enterprises can be registered as manufacturing, service industry. This grouping can be further divided as per the size of the firm as micro (investment upto Rs 25 lakhs), small (investment between Rs 25 lakh and Rs 5 crore) and medium (Rs 5 to 10 crores) enterprise. 

SMEs can register under MSMED Act and submit various documents regarding the market potential of the product, technology aspect, plant and machinery requirement, land and building requirement, among other things. Registering with the government provides SMEs with incentives such as credit guarantee scheme, priority sector lending, capital subsidy, reduced customs duty, power tariff subsidies, tax exemptions, etc. which can help them in saving on finances. 

Registration also confers an official status to the enterprise which can utilize it to get into mergers and partnerships with international firms. These firms also find the registered bodies trustworthy for expanding their business in newer markets.