MSME Registration

SSI/MSME Registration

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  • License Receipt

    In fifteen days of the application receipt the certificate will be issued.

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What is MSME Registration?

SSI, which stands for Small Scale Industries and the MSME, which stands for Medium Enterprises, can apply for MSME registration under the MSMED Act. This is not a mandatory practice and businesses are not required to do so, however those business which do msme registration gain a lot of benefits under this MSME Registration, such as exemption of direct tax and excise duties, private sector lending, capital investment subsidies and power tariff subsidies. In order to qualify as an MSME, there has to be an investment in plant and machinery of less than 10 crores for a manufacturing enterprise. For the service enterprises, they must have not more than 5 crores that should be invested in their plant and machinery. At any point in time, if these enterprises exceed this investment limit, then they must cancel their MSME Registration under the MSMED act.

Six Facts about SSI/MSME Registration

  • What is SSI/MSME Registration
  • There are various benefits being offered to small businesses by the Indian government, such as cheap credit, ease of loan approvals, tax exemptions and more so that they can grow at a faster rate without any problems. In order to get these benefits, the organizations should be able to qualify for the requirements under the MSMED act. This is quite an easy SSI registration that can be availed by small businesses.

  • Is this SSI Registration mandatory or Voluntary?
  • The only reason why SSI registration is needed is to avail the benefits and the subsidies which are associated with it. SSI registration is also quite easy to get as compared to other MSME registration that is why many businesses are interested in opting for this one.

  • Why should SSI Registration applied for before the commencement of operations?
  • Through this a business can get the Provisional SSI Registration certificate (PRC) which will enable the business to get term loans as well as working capital on priority lending and it makes it easy to get various NOCs as well as clearances from different regulatory bodies, such as the pollution control board.

  • What are the required documents for this SSI/MSME Registration?
  • MSME Registration can be applied for without the industrial license if your unit is under the schedule-III of the industrial licensing exemption notification. If it is not, then you must apply for the industrial license first. The unit must also have all other clearances be it statutory or even administrative. The unit should also not be in violation of any locational restrictions in force and should be neither be controlled or owned of any other industrial undertaking. There is no field enquiry that is made and the PRC that is issued is based only on the application form.

  • Advantages of SSI Registration
  • It can be in the form of cheaper loans from the banks, easier access to credit facilities, quick approvals from the central or governmental bodies, tax rebates, cheaper infrastructures that includes vat exemptions and electricity.

  • Maintenance of record
  • Any entity that has SSI Registration with but does not follow the regulations would be deregistered and in case it exceeds the limits of investments, this will also cancel the firm's SSI registration.

What to know about SSI/MSME Registration

  • Micro Enterprise
  • These are very small enterprises and the micro manufacturing enterprises have investment of less than Rs25 lakh in plant and machinery and the micro service enterprises have investment of less than Rs10 lakh.

  • Small Enterprises
  • The small manufacturing enterprises have investment that is between Rs.25 lakh to Rs.5 crores that is invested in the plant and machinery and the small service enterprises have investment that is between Rs.10 lakh to Rs.2 crores.

  • Medium Enterprises
  • The medium manufacturing enterprises have investment that is between Rs.5 crores to Rs.10 crores that is invested in their plant and machinery. The medium service enterprise on the other hand, has investment that is between Rs.2 crores to Rs.5 crores.

The Process of SSI/MSME Registration

  • Two working days
  • Identity and address proofs along with PAN cards are needed for all of the proprietors, partners as well as the directors. The Private limited companies also need to submit their Form 32, articles and memorandum of association, form 18, certificate of incorporation and partnerships have to give in their partnership agreements. Moreover, electricity bills of the premises and the rental agreement of the office must also be submitted for MSME Registration Online.

  • Two working days
  • The application will be filed by us for you in the state office and there may be some additional documents which may be required by you, as the MSME Registration procedure differs from state to state. Some of the states have a requirement for the MSME to submit the municipal clearance and the sales bill of their machinery.

  • Fifteen working days
  • If your unit has not started the operations then you would be given a provisional certificate that has a validity of 5 years. If you plant is operational, then a permanent certificate is given.

Government SSI/MSME Registration Types

Small Scale Industry

  • Who is it for: Small, micro, Medium enterprises
  • When is it needed: For tax breaks or subsidies
  • Any returns that need to be filed: No
  • The issuing authority: The Ministry of Micro, Small and Medium Enterprises

Shops & Establishments Act

  • Who is it for: All types of businesses
  • When is it needed: In 30 days of starting your operations
  • Any returns that need to be filed: No
  • The issuing authority: The Municipal Corporation

Professional Tax Registration

  • Who is it for: All of the employers
  • When is it needed: In 30 days of starting your operations
  • Any returns that need to be filed: Yes
  • The issuing authority: The State Government

FAQ on MSME Registration

PRC, or Provisional registration Certificate expires by the end of 5 years and then you may re apply if the unit in not in operations or if it has exceeded the limits of investment. As soon as the operations start, the business can apply for the permanent license.

The plant and machinery's total cost must be at least Rs.25 crores for manufacturing units and for the service units; it must be about Rs.10 crores for the purpose of registration. The land and building values are not calculated and counted in the total investment. Depreciation is not factored in and the original cost of the machinery and the plant is considered.

There are special schemes by banks for MSMEs and it includes the priority sector lending as well which means the chances of the business getting the loan are quite high. The rates of interest that a bank may charge may also be lower. When it comes to repayment, there may also be a preferential treatment.

Benefits include subsides on power, taxes and entry for state run industrial estates. There may also be exemption on sales tax in some of the states and also purchase preferences given to the goods which these units are producing. There may also be excise exemption and exemption from direct taxes in the first few years of the operations, depending on the types of the business.

Why Corp Biz

20 Working Days

Just tell us a little bit about your business and you'll have the incorporation certificate in 20 working days. It's that simple. In addition to yours, we'll be handling around 400 requests this month.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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