What is MSME (Micro, Small & Medium Enterprises)?
- MSME (Micro, Small & Medium Enterprises)
- MSME in India classifies businesses by investment and turnover for government scheme eligibility, with Micro (≤₹1Cr investment, ≤₹5Cr turnover) to Medium (≤₹50Cr, ≤₹250Cr).
MSME Registration Benefits
MSME registration (via Udyam Portal) provides: priority sector lending from banks, lower interest rates, government procurement preference (₹200 Cr threshold), 45-day payment protection (MSMED Act — buyers must pay within 45 days or pay compound interest), and various state government subsidies.
MSME Compliance with ERP
The MSMED Act requires buyers to disclose MSME payables in financial statements and ensure 45-day payment. ERPNext helps by tagging Suppliers as MSME in the master, flagging overdue MSME invoices, and generating the Micro, Small, Medium Enterprises outstanding report for notes to accounts.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.