There is some technical information that you should be aware of before establishing cold storage units. The primary question is Are the providing services for cold storage eligible to register under MSME? We will be answering the question in detail in this article. So, keep reading to learn everything about it.
Are the providing services for cold storage eligible to register under MSME?
The term “Micro, Small, and Medium Enterprises,” or MSME, refers to businesses whose annual turnover is less than Rs. 250 crores and whose investment in machinery and plants do not approach Rs. 50 crores. The Ministry of Micro, Small, and Medium Businesses is a department of the Indian government. The Department is committed to overseeing the legislation, rules, and policies pertaining to such MSMEs.
Organizational Types for MSME
MSME is divided into two groups, namely:
- Manufacturing companies: These are the businesses engaged in the manufacture of goods. They are further divided into groups based on the annual turnover and the investment made in equipment and plant.
- Services Businesses: These companies offer services and are additionally categorized according to their equipment investment and annual revenue.
Cold Storage is a Service Business.
Cold storage can be considered an MSME services provider in India. So, providing services for cold storage is eligible to register under the MSME.
The Investment Cap and Annual Revenue - How many types of cold storage are there?
Before you consider How much does a cold storage cost?, you should look at the investment cap. The investment cap and annual revenue for Micro, Small, and Medium Enterprises are summarised in the table below.
Type of Enterprise
Benefits of the Cold Storage Units Registration Under the MSME Are The Providing Services For Cold Storage Eligible To Register Under MSME?
But why should any cold storage company sign up for the MSME? Here is why:
- Bank loans with no collateral
The Government of India (GOI) launched the Loans Guarantee Fund Scheme for Micro and Small Enterprises (CGS) to make collateral-free credit available to the micro- and small-enterprise sectors. Existing and new businesses can apply to have their operations covered by the program. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established by the Ministry of Micro, Small, and Medium Enterprises, the Government of India, and the National Small Industries Bank of India (SIDBI) to carry out the Loan Guarantee Fund Scheme for Micro and Small Enterprises.
- Qualified for an Industrial Promotion Grant
MSME-registered businesses are eligible for industrial promotion subsidies, as the government may specify in this regard.
- It Offers A 50% Subsidy On The Registration Of Patents.
By submitting an application to the appropriate ministry, businesses with an MSME Registration Certificate can receive a 50% discount for patent registration.
- A 1% Interest Rate Reduction On Overdrafts
Businesses that have MSME Registration are eligible for a 1% interest rate reduction on OD, as specified in the program (this is bank dependent).
- Defense Against A Payment Delay
The Ministry of Micro, Small, and Medium Enterprises protects MSME Registered Businesses against delays in payments from Buyers and offers them the right to interest on late payments through mediation and arbitration, with a focus on speedy dispute resolution.
- Iso Certification Fees Are Reimbursed
Businesses with an MSME Registration Certificate may submit an application to the appropriate authority to request reimbursement for ISO Certification costs.
- A Reduction In Electricity Costs
By submitting an application to the electrical department with their MSME Registration Certificate, businesses that have received this certification are eligible to receive a discount on their electricity bills.
- Market aid from the government and export promotion: The Indian government conducts a number of international trade-related events, including exhibitions, craft fairs, and trade shows. Being a micro, small, or medium-sized business grants access to all of these forums for global collaboration on trade-related issues.
- The government compensates the cost of the project for MSME sector units towards such goals as well as expenses incurred for the successful execution of green tech, preparedness of audit reports, and subsidization for licensing products in compliance with national and international benchmarks. This is done to increase cost-effectiveness and encourage the utilization of clean energy in production.
This blog is also worth reading for you: – How many cold storages are there in Maharashtra
Registration Under the MSME - What is the MSME Registration NIC Code?
The National Industrial Classification Code is referred to as the NIC code. It is a tool the government uses to monitor economic activity. Identifying the type of business is also helpful.
For applications for MSME registration, LLP registration, or any other type of company incorporation, the NIC Code is typically employed.
The MSME Registration NIC Code denotes
- NIC, 2 to 3 digits The group of business activities is represented by a code.
- The business class activity is designated by a 4-digit code.
- The five-digit code designates a certain sort of commercial activity.
Document Requirement for MSME Registration
- Aadhar Card,
- PAN Card,
- Bank Account Information
- Previous Udyam Registration Information
- Type of Business Entity
- Number of Employees:
- Business Type or Company Formation Information
- Investment in equipment or machinery
If you are an owner of the cold storage, make sure to register under MSME. It offers a wide range of government-sponsored benefits to business owners, including lower-interest loans, bank loans, loans without guarantees, and several standard programs.
MSMEs that have registered are also qualified for financial aid when they exhibit their goods at foreign trade exhibitions. You can register in the MSME in any city such as Karur, Karawal Nagar, or Bulandshahr in the state.