Why is the MSME of India not considered a startup
What startups and MSME entities have in common is that they are both business-oriented and both require business. For startups, the level of risk and enterprise is certainly higher. Because they are generally working on new, untested ideas. In most cases, startups are often founded by qualified engineers and other people compared to the entrepreneurs who create MSMEs. Startup or Startup Company or upstart is a term 30 or 40 years ago and was developed primarily in the electronic era with the advent of the Internet. Small and Medium Enterprises (MSMEs) known in India are known worldwide as Small and Medium Enterprises (SMEs). In post-independence India, there were Khadi and Village Industries and Small Scale Industries. After the bank was nationalized in 1969, the major sectors for bank lending purposes included SMEs, agriculture, retail, SMEs, trading companies, and small road transport companies. After liberalization, it was considered wise to use the term MSME in line with global practice. The Ministry of Small and Medium Enterprises and the Ministry of Agriculture and Rural Industry were integrated into the Ministry of Micro, Small and Medium Enterprises in May 2007. There is no standardized or widely accepted definition for startups. According to the Startup India website, a company is considered a startup. 1. If incorporated as a limited liability company, or registered as a partnership or limited partnership in India. 2. Up to 10 years from the date of establishment / registration. 3. When sales do not exceed 100 rupees in any of the fiscal years after incorporation / registration. 4. If you work towards innovation, development, or improvement of a product, process, or service, or if you have a scalable business model that is likely to create jobs or wealth. The definition of MSME has changed several times. Starting July 1, 2020, MSME is defined as micro if the manufacturing company and the service provider invest less than 100 million rupees in the plant and machinery or equipment and the annual sales do not exceed 500 million rupees. Increase. Investment in plants and machinery or equipment is Rs10 Cr or less, with annual sales of Rs. Less than 50 Crs, investment in plants and machinery or equipment less than or equal to Rs 50 Crs, and annual sales less than or equal to Rs. 250 Crs. It is not compulsory to register a startup or MSME in India. However, if the startup is registered or approved by the Government of India's Industrial and Domestic Trade Promotion Agency (DPIIT), you can claim certain incentives, including tax incentives described by the government. Similarly, MSME registration is not mandatory, but registration with the Local Industry Center (DIC) is a requirement to receive various government-provided benefits and incentives, including bank loans. DIC is a district-level organization of the Indian Development Commission MSME, headed by the General Manager.
