MSME Registration

Do you wander door to door of banks for getting loans for your Small Business? Get your SSI/MSME Registration done today and never struggle for finance related problems again!

  • Verification of data
  • Connect with the vendors
  • License Receipt
  • MSME Registration
  • Application drafting for MSME Registration

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What is MSME Registration?

The Small Scale Industries {SSI} and the Micro, Small, and Medium Enterprises {MSME}, can apply for MSME registration under the MSMED Act. This is not mandatory; however businesses with MSME Registration become eligible for numerous benefits provided by the Government under the MSMED Act. Examples of such benefits include exemption of Direct Tax and Excise Duties, Private Sector Lending, Capital Investment Subsidies, and Power Tariff Subsidies.

Benefits of MSME Registration

  • The entities holding an MSME Registration gets loans from banks at a cheaper rate, approximately 1- 1.5%, which is a lot lesser than the usual bank rates.
  • Various tax rebates are provided to MSMEs.
  • MSMEs are allowed to carry forward the credit for Minimum Alternate Tax {MAT} up to 15 years, which in the general case is 10 years.
  • There are numerous tenders available only to MSME Industries.
  • MSMEs get credit easily from various financial entities
  • Registered MSMEs have higher preference
  • MSME Certificate also helpful for the bank account opening
  • Also, companies holding an MSME Certificate have better opportunities for growth as they get a direct entry in major international/ national trade fairs and similar other opportunities.

Eligibility Criteria for MSME Registration

To qualify as an MSME, you should have invested in plant and machinery of fewer than 10 crores for a manufacturing enterprise. For service enterprises, the invested amount must not exceed Rs. 5 crores in plant and machinery. At any point of time, if these industries exceed this investment limit, then they might cancel their MSME Registration under the MSMED Act.

What is SSI/ MSME?

The MSMEs are classified into two categories;

  • Manufacturing Enterprises

    Industries involved in manufacturing activities

  • Service Enterprises

    Industries mainly involved in providing services to other industries.

In 2006, the Government of India enacted the Micro, Small and Medium Enterprises Development Act {MSMED Act} to strengthen the Small Scale Sector in India. As per this Act, the definition of Micro, Small and Medium Enterprises are as follows;

  • Micro-Enterprise

    Type of industries

    Type of Investment

    Investment amount

    Manufacturing Sector

    In plant and machinery

    < Rs. 25 Lakhs

    Service Sector

    In plant and machinery

    < Rs. 10 Lakhs

    These are very small enterprises, and these micro manufacturing enterprises have an investment of less than Rs. 25 lakh in the plant and machinery for entities involved in manufacturing activities. Whereas, the micro-enterprises involved in the service sector should have an investment of less than Rs. 10 lakh in plant and machinery.

  • Small Enterprises

    Type of Industries

    Type of Investment

    Investment Amount

    Manufacturing Sector

    In plant and machinery

    Rs. 25 Lakhs - 5 Crore

    Service Sector

    In plant and machinery

    Rs. 10 Lakhs - 2 Crore

    The small manufacturing enterprises should have an investment that is between Rs. 25 lakh to Rs. 5 crores that are invested in the plant and machinery. Also, the small enterprises have investment that is between Rs. 10 lakh to Rs. 2 crores.

  • Medium Enterprises

    Type of Industries

    Type of Investment

    Investment Amount

    Manufacturing Sector

    In plant and machinery

    Rs. 5 Crore - 10 Crore

    Service Sector

    In plant and machinery

    Rs. 2 Crore - 5 Crore

    The medium manufacturing enterprises have an investment that is between Rs.5 crores to Rs.10 crores invested in their plant and machinery. The medium service enterprise, alternatively, has an investment that is between Rs.2 crores to Rs.5 crores.

Importance of MSME Registration for Small-Scale Industries

  • MSME registration is essential for organizations, as it brings clarity and credibility to the functioning of the entity.
  • If you are planning to start an MSME anywhere in the country, then the MSME department authorized by the government of India will help you in the promotion of your enterprise.
  • To avail benefits such as incentives, subsidies and bank loans, MSME registration is mandatory.

Documents Required for MSME Registration

Following are the list of documents and information that you have to provide as per the application form;

  • Aadhar Card
  • Owner’s name- this should be strict as per the Aadhar Card
  • Social category- whether the applicant belongs to the General, SC, ST, or OBC category
  • Gender
  • Physical status- whether the applicant is physically disabled or not
  • Name of the enterprise
  • Type of enterprise- select from the given list
  • PAN Number
  • Official Address of plant
  • Location of plant
  • Date of incorporation of the entity
  • Previous registration details- if any
  • Bank details
  • The activity of enterprise- choose from “Manufacturing” or “Service”
  • NIC Code
  • Employment information- total number of employees working in the applicant’s organization
  • Investment details in plant and machinery

The Process of SSI/ MSME Registration

  • Fill the MSME Form:

    First, all the applicants have to fill all the required details in the application form and submit the form to the concerned department. This step can be commenced either online or offline.

  • Prepare all documents:

    Gather all the documents required as per the MSME Registration Application form. Generally, this process takes about one to two working days to reach the next step.

  • Filing the MSME Application:

    In the next step, you have to upload all the required documents and submit the application to the MSME Registrar. The regulatory authorities process and verify the authenticity of all the documents in another two working days.

  • Application approval and Certificate issuance:

    Upon successful verification of all the documents, your company will get registered under the MSME.

Frequently Asked Questions

MSME stands for Micro, Small & Medium Enterprises defined under the Micro, Small & Medium Enterprises Development Act {MSMED Act}, 2006 depending on the investment made in plant & machinery and equipment of the organization.

 

 

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