DSB help your business to avail host of benefits like- less rate of interest, tax subsidies, collateral free borrowings, government subsidies capital investment subsidies and much other support from the government sector.
The Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 provides registrations to the micro, small and medium enterprises whose classifications in terms of investment is as under:
In case of manufacturing sector:
| Enterprise | Investment |
| Micro | Does not exceed twenty five lakh rupees |
| Small | More than twenty five lakh rupees but does not exceed five crore rupees |
| Medium | More than five crore rupees but does not exceed ten crore rupees |
In case of Service sector:
| Enterprise | Investment |
| Micro | Does not exceed ten lakh rupees |
| Small | More than ten lakh rupees but does not exceed two crore rupees |
| Medium | More than two crore rupees but does not exceed five crore rupees |
The Union cabinet has approved a proposal to redefine MSMEs, based on their annual revenue, replacing the current definition that relies on self-declared investment on plant and machinery.
The move is expected to improve ease of doing business, avoid unnecessary inspections and at the same time enable the authorities to verify claims of businesses using the sales data they have from the GST Network, the company that processes goods and services tax (GST) returns.
Government has recently announced FAQs on MSME which are available at https://msme.gov.in/faq