MSME Registration

What do we mean by MSME?

The very first thing that comes to our mind is what MSME is all about. Hence, the following are the brief explanation covering MSME registration investing in plant and machinery -

  • Micro Enterprise- entities that invest less than 25lakhs in plant and machinery
  • Small Enterprise- an entity that invests between 25 lakhs to 5 crores in plant and machinery
  • Medium Enterprise- an entity that invests between 5 crores to 10 crores in plant & machinery

MSME enterprise is also categorized with the investing in the equipment-

  • Micro Enterprise- entities that are investing less than 10 lakhs
  • Small enterprises- entities that are investing more than 10 lakhs but less than 2 crores
  • Medium Enterprise- entities that are investing between 2 crores to 5 crore

    The government has made it compulsory to have an Aadhar Number for registering under online MSME Registration under the MSME act. An application will be filed online using the official website of Udyog Aadhar Registration at www.udyogaadhaar.gov.in and this can be verified using the Aadhar OTP.

Why Do We Need MSME Registration?

MSME or Micro Small and Medium Enterprise, presently the government of India has introduced various schemes, subsidies, and incentives to promote MSME through MSMED act. Not only the government but the banks are also providing loans to these MSME at very concessional rates to set their first brick of the business. However, to get these benefits from the central and the state government or the banking sector, you must get your MSME Registration.

What is the eligibility criteria for MSME Registration

You can apply for MSME registration online if you fulfill one or multiples of the following criteria or are associated with the following, such as if:-

  • You are a sole proprietor (exclusive owner of a business)
  • You belong to or are part of Hindu Undivided Family.
  • You work as or have a partnership firm with another party in an association.
  • You are just a one person company
  • You have a limited liability partnership
  • You have a private limited company
  • You have a production company that produces materials.
  • You work in an association with other persons.
  • You have co-operative societies
  • Or any other than person undertaking of the above list.

Documents Required for MSME Registration

  • Pan Card of the proprietor/ all the partners/all the directors
  • Aadhar Card of the proprietor/all the partners/all the directors
  • Proof of ownership of premises such as allotment letter/possession letter/lease agreement/property tax receipt.
  • If rented premises Rent agreement and NOC from the landlord along with supporting by the landlord ownership.
  • Copy of sale bill for each end product
  • Copy of purchase bill of each raw material purchased
  • Partnership Deed
  • Copy of Memorandum and Articles of association in case of Private Limited Company along with Board’s Resolution authorizing the director to sign the application
  • Copy of Industrial License as obtained under Industrial Development and Regulation Act,1951
  • An affidavit of Rs. 10/-non judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement etc.
  • Purchase bill of machinery installed
  • Bank Account Statement

Undoubtedly MSME Registration Process is completely online but subsequently, you need a professional to fill up your application and getting approval from the department because many of us are not aware of the latest rules and regulation of the government.

Moreover, each state has a separate District Industries Centre department and these authorities approved the MSME Registration Certificate with the MSME Number. It is not mandatory to have a MSME registration but there are certain benefits that you will avail if you get your MSME Registration done.

What are the Advantages of MSME Registration?

The micro and medium enterprises in the manufacturing sector and the service sector can obtain MSME Registration. Though the MSME Registration is not exactly statutory yet it is quite beneficial for certain businesses as it provides with a range of several benefits like:-

  • Lower rates of interest on the loan.
  • Tax subsidy.
  • Excise duty exemption schemes.
  • The power subsidy tariffs
  • Also capital investments subsidy etc and other supports.
  • It will give collateral free loans from the banks.
  • There are reservation policies for the manufacturing sector and production sector.
  • You will easily get approval for the registration and license.
  • You get special consideration for the international trade fairs
  • You become eligible for IPS subsidy
  • You can get reimbursement of ISO certification.

Now, the company who has a small scale set up can go for SSI Registration. The Government has benefited the industries buy allowing SSI Registration Online.

How to Get SSI Registration?

As per the Notification released on 07th February 2018 SSI registration by manufacturing enterprise can be obtained by complying following conditions-

  • Micro Enterprise – that annual turnover does not exceed Rs 5 crores
  • Small enterprise- that annual turnover between Rs 5 Crores to Rs 75 Crores
  • Medium Enterprise- that annual turnover is between Rs 75 Crores to Rs 250crores

The SSI registration can be avail for acquiring all the benefits and subsidies that are available under a registration as the registration is totally voluntary to obtain.

SSI Registration will contribute to the economic growth of the nation. Before heading straight for the operations what you can do is to first go with the provisional SSI registration certificate or PRC eventually. With the help of SSI Registration certificate, one may be able to obtain term loans, capital for working and government regulatory bodies would give clearance as well. You can go for SSI Registration online as there are numerous benefits that are provided by the Indian government for achieving the economic growth at a faster pace and with SSI registration one can get easy credit and subsidies along with tax rebates and exemptions.

The SSI registration process is similar to MSME Registration Procedure. Furthermore, the SSI registration can be canceled anytime if it exceeds the prescribed amount of turnover or investment by the government.