MSME Registration

MSME Registration

MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. MSME registration or SSI registration helps businesses avail multiple government subsidies and benefits MSMED act. Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI registration under the MSMED Act. Although getting MSME registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.

Documents Required for Digital Signature

  • Aadhaar Number: 12 digits Aadhaar number issued to the applicant
  • Name of Owner: The applicant name as mentioned on the Aadhaar Card issued by UIDAI.
  • Social Category: General / Scheduled Caste / Scheduled Tribe / Other Backward Castes (with proof).
  • Name of Enterprise: Name of the legal entity to conduct business. One applicant can have more than one enterprises doing business and each one can be registered for a separate Udyog Aadhaar and with the same Aadhaar Number.
  • Type of Organization: Type of Business entity or Legal Entity. (Proprietorship, Partnership Firm, Hindu Undivided Family, Private Limited Company, Co-Operative, Public Limited Company, Self Help Group, LLP, Others)
  • Postal Address: Address of the business including mobile and email address.
  • Date of Commencement: The date on which businesses was started.
  • Previous Registration Details: Details of previous MSME registration, if applicable should be entered here.
  • Bank Details: Details of the bank account of the company including IFSC Code and Bank Account number.
  • Major Activity: Major area of activity of the business – manufacturing or service.
  • NIC Code: The appropriate NIC Code should be entered from the National Industrial Classification (NIC) handbook
  • The person employed: The total number of people employed in the business
  • Investment in Plant & Machinery / Equipment: Amount of money invested in terms of machinery and equipment by the business.
  • DIC: Details of the District Industry Center nearest to the business, if required.

HIGHLIGHTS OF MSME REGISTRATION

MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits and access to subsidies and schemes.
To be classified as a MSME, Enterprises in the Manufacturing sector need to have less than Rs.10 crores of investment in plant & machinery; service Enterprises must have an investment of less than Rs.5 crores of investment in plant & machinery.
A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.
A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.
A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.
To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name.

FREQUENTLY ASKED QUESTIONS

There are small and medium enterprises which fall under SSI/MSME category. MSME stands for Micro, Small and Medium enterprises. Being the backbone of an economy sector, MSME enterprises acts as an engine which helps in the growth of the economy and promoting equitable development. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To utilise all the benefits which are offered under MSME act, the enterprise should be registered as MSME with the concerned department.

These benefits of MSME registration include priority sector lending, power tariff subsidies, capital investment subsidies and excise and direct tax exemptions. Following are the conditions which need to be fulfilled to qualify under MSME Act.

☞ All the manufacturing enterprises which have invested less than 10 crores in machinery and plant are allowed to be registered as MSME.

☞ In service enterprises, the investment in plant and machinery should not be more than 5 crores.

☞ And in near future, if your enterprise exceeds the maximum limit, then it will not sum up as MSME.

There are 3 types of MSME or SSIs which can be classified as under:

☞ Micro Enterprises: Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment.

☞ Small Enterprises: In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores.

☞ Medium Enterprises: And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores.

There are multiple benefits of MSME / SSI registration for small businesses:

☞ Cheaper bank loans: The rate of interest on loan offered to MSMEs is 1-1.5% lower compared to typical business loan interest.

☞ Easy access to credit: PM Modi has introduced the Mudhra Loan scheme, which provides loans to MSME / SSI without collaterals.

☞ Quicker approvals from state and central government bodies: Business registered under MSME are given higher preference in terms of government license and certification.

☞ Tax rebates: MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.

☞ Cheaper infrastructure: Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.

☞ Access to tenders: There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.

Anyone who claims to be an owner of a trademark can apply for trademark A Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under MSME Act. It will save you from a lot of inconveniences later on. After assigning you the Provisional MSME Certificate and you can begin with your production and even apply for a Permanent Certificate which will add more advantages for you. Always apply for provisional registration at an initial stage of the business.

As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs usually get this done to utilise the advantages offered under it. The registration process is quite easy and simple. You can easily avail it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations.