{"id":5603,"date":"2023-09-23T19:07:32","date_gmt":"2023-09-23T13:37:32","guid":{"rendered":"https:\/\/www.startupfino.com\/blogs\/?p=5603"},"modified":"2023-09-23T19:07:34","modified_gmt":"2023-09-23T13:37:34","slug":"can-startups-benefit-from-msme-registration-for-better-government-support","status":"publish","type":"post","link":"https:\/\/www.startupfino.com\/blogs\/can-startups-benefit-from-msme-registration-for-better-government-support\/","title":{"rendered":"Can Startups Benefit From MSME Registration For Better Government Support?"},"content":{"rendered":"\n

After the Startup India Scheme of the government, India is flooded with startups. Startups are those businesses that are new original entities and are not older than ten years since their incorporation. All startups directly or indirectly fall under one category of MSME. MSME is the abbreviation of Micro, Small and Medium Enterprises. These startups can get MSME registration<\/strong><\/a> for better government support. This registration of MSME is also popular by the name of Udyam registration, given to those entities that either fall under micro enterprises, small enterprises or medium enterprises. There are multiple advantages and benefits the government is providing to startups and MSMEs.Hence, one must take MSME registration for better government support.<\/p>\n\n\n\n

What are Startups and MSMEs?<\/h2>\n\n\n\n

Startups and MSMEs are two different categories<\/strong> of businesses in India. It is not necessary that every newly started business falls under the category of startups and MSMEs. There are certain criteria to be called a startup and MSME in India. Entities that fall under this criteria will be able to take the government benefits provided to both of them. All the startups are supposed to take Startup India registration to get benefits as startups in India. Similarly, all the MSMEs are supposed to take MSME registration for better government support. To get recognised as a startup and MSME, one needs to fit in the following criteria.<\/p>\n\n\n\n

<\/a>Startups Criteria<\/h3>\n\n\n\n

To get the benefits and support of a startup in India, one must fall under the category of startups. The criteria to be called a startup in India are given below in tabular form:<\/p>\n\n\n\n

Entity Requirement<\/strong><\/td>Startup Criteria<\/strong><\/td><\/tr>
Entity Age<\/td>To be considered a startup entity, it must not be older than ten years since its incorporation date. It must be in existence and in operation for not more than ten years<\/strong> from its incorporation date.<\/td><\/tr>
Entity Type<\/td>Only three types <\/strong>of entities can get Startup India registration. These three types include private limited company, partnership firms and LLP<\/td><\/tr>
Entity Turnover<\/td>Turnover must not be more than Rs. 100 crores<\/strong><\/td><\/tr>
Original Entity<\/td>It must be an original entity. Original entity means an entity that is newly incorporated and has not come into existence through splitting, merger, accusation, etc., of two companies or entities.<\/td><\/tr>
Innovative and Scalable Entity<\/td>Must have the capacity to generate wealth and new opportunities which can help in the growth of the nation<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/a>MSMEs Criteria<\/h3>\n\n\n\n

There are three types of MSME, which have been divided into three categories: Micro, Small and Medium Enterprises. To determine the category of an MSME, the following factors given in the table play a great role:<\/p>\n\n\n\n

Type of Enterprise<\/strong><\/td>Turnover<\/strong><\/td>Investment<\/strong><\/td><\/tr>
Micro Enterprises<\/td>Up to or less than Rs. 5 Crores<\/strong><\/td>Up to or less than Rs. 1 Crore<\/strong><\/td><\/tr>
Small Enterprises<\/td>Up to or less than Rs. 10 Crores<\/strong><\/td>Up to or less than Rs. 50 Crores<\/strong><\/td><\/tr>
Medium Enterprises<\/td>Up to or less than  Rs. 50 Crores<\/strong><\/td>Up to or less than Rs. 250 Crores<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/a>Startups to get MSME Registration for Better Government Support<\/h2>\n\n\n\n

From the above criteria, it is clear that some startups can fall under the category of MSMEs in India. Hence, it is advisable for those startups to get MSME registration for better government support. After getting registered as an MSME in India, one can get the following support from the government:<\/p>\n\n\n\n

<\/a>Various Subsidies<\/h3>\n\n\n\n