What is MSME Registration?
Micro, Small, and Medium Enterprises(MSME) are businesses that are defined based on their investments. They are classified into two categories Manufacturing Enterprises and Service Enterprises.
For Manufacturing Enterprises, they are defined in terms of investments in plant and machinery.
- Micro-enterprises are the entities whose investment is less than Rs. 25 lakhs.
- Small-enterprises are entities whose investment is more than Rs.25 lakhs but not exceed Rs.5 crores.
- Medium-enterprises the entities whose investment is greater than Rs.5 crores but not exceeds Rs.10 crores.
For Service Enterprises, they are defined in terms of investments in equipment.
- Micro-enterprises are the entities whose investment is less than Rs.10 lakhs.
- Small-enterprises are entities whose investment is more than Rs.10 lakhs but not exceed Rs.2 crores.
- Medium-enterprises are the entities investing Rs.2 crores but less than Rs.5 crores.
The registration under MSME is not mandatory. But if you got registered under MSME you can avail so many benefits which are mentioned below:
- You can take benefits under exemption schemes of direct tax.
- Avail special schemes from banks that are specially made for MSME.
- Support from your state government.
- Concession in electricity bills.
- Credit for MAT( Minimum Alternative Tax) to be carried forward for up to 15 years instead of 10 years.
- Low-interest rate from the bank.
Documents required for MSME registration:
- Business address proof like allotment letter, lease deed, possession letter, or tax receipt, and if the property on lease the NOC (No objection Certificate) from the landowner is required.
- PAN number
- Aadhaar number
- Address of business
- Bank account number
- Copies of sales and purchase bill
- Partnership deed/ MoA (Memorandum of Association) and AoA (Article of Association).
- Bills of machinery purchased and a copy of licenses.
Steps for registration:
- First, you have to go on the website for registration, the link is: (https://www.msmeregistration.org)
- Now you have to fill all the basic details like the name of the applicant, bank details, business activity, mobile number, email id, NIC 2 digit code, etc.
- After the above step, the MSME executive will review your application and let you be notified if there are any discrepancies and then you have to make the relevant changes.
- After completing step 3 now you completed the form and now you will get the MSME certificate that you print as no hard copy is sent to you by the ministry, you only have a virtual certificate.
The scheme launched by the government for MSME:
- Woman Entrepreneurship: This scheme is started for women who want to start their own business. The government helps them by providing capital, training, and delivery systems.
- Udyog Aadhaar Memorandum Scheme: By this scheme, the government helps MSME by providing quick loans, credit facilities, and government subsidies.
- Credit link capital subsidy scheme: Under this scheme, new technology is provided to the business owners to replace their obsolete technology. To get this assistance the business owner can reach their banks for subsidies.
- Incubation: Under this government will finance 75%-80% of the project cost to help the innovators with the implementation of their new ideas, design, or products.
- Quality management standards & Quality technology tool: This scheme helps MSME to understand and implement the quality standards that are required to run along with the new technology.
- Grievance monitoring system: With the help of this scheme a business owner will bring their complaints and check the status of whether it is resolved or not.
- Zero defect zero effect: The good quality and standard product will export so that they will not be rejected and sent back to India. Under this scheme, the goods which are eligible for export are eligible for rebates and concessions.