What comes under MSMEs? As per the revised classifications w.e.f. 1st July 2020, Micro, Small & Medium Enterprises (MSMEs) are now defined on the basis of composite criteria of “Investment in Plant & Machinery / equipment and Annual Turnover”. Value of Plant and Machinery or Equipment In terms of RBI Circular dated August 21, 2020, the value of Plant and Machinery or Equipment for all purpose of MSME classification and for all the enterprises shall mean the Written Down Value (WDV) as at the end of the Financial Year and not cost of acquisition or original price, which was applicable in the context of the earlier MSME classification criteria. Registration of MSME MSME registration process is fully online, paperless and based on self-declaration. Registration process is totally free. No costs or fees are to be paid in this regard. The registration can be done by entering the Aadhaar card number with or without PAN Card at Udyam Registration Portal.(https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm) The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems. The objective of the portal is to provide a single-page registration, consume less time and simplify process of registering any enterprise under MSME. A permanent registration number will be given after registration. There will be no need for renewal of registration. Union Ministry of Micro, Small and Medium Enterprises (MSME) has clarified that except for this portal of Government of India, (https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm) and Government's Single Window Facilitation Systems, no other private online or offline system, service, agency or person is authorized or entitled to do MSME Registration or undertake any activity related with that process. Benefits of MSME Registration: MSME: Financing the Business One can avail the credit/ business loans through the online or offline mode. The business loan can be used for setting up new enterprise or stepping up existing business (expansion, diversification, modernization, technology upgradation). These can be for the following: Acquisition of land and construction of building spaces, acquisition of factory/ enterprise Purchase of plant and machinery including lab and testing equipment, electric fittings, furniture, etc. Fulfilling working capital requirements like - raw materials, stock-in-progress, finished goods, etc. Trade Finance (Bill discounting) - for paying the creditors, while awaiting payment from debtors. Launch of new product range, expansion of business, credit for marketing and advertising purpose, warehousing work. Additional monetary assistance for any eligible purpose.