MSME Stands for Micro, small and medium enterprises. In developing countries, MSME is the backbone of any economy and an engine for economic growth. Therefore, to support and also to promote MSMEs, the Government of India has introduced many schemes and strategies in order to promote MSMEs through the MSMED Act. To utilize the benefits under the MSMED Act from the central and state government you must require MSME Registration.
MSME Registration is beneficial for business as it provides a range of benefits such as excise exemption scheme, tax subsidies, eligibility for lower rates of interest, power traffic subsidies, capital investment subsidies, and other support. As per the MSMED Act, 2006 the micro, small and medium enterprises are basically dependent on the investment of plant and machinery for those who are engaged in the manufacturing and production process of goods, investment in equipment for business enterprises engaged in providing or rendering services.
MSME Sectors contributes to 45% of India’s total industrial employment, 95% of all industrial units of the country, 50% of India’s total exports and more than 6000 types of products are manufactured in these industries. When these industries grow, the economy of the country also grows as a whole and flourishes.
What are Small, Medium and Micro Enterprises?
Small Enterprise: In manufacturing sector, Small enterprise is an enterprise with more than Rs.25 lakhs but not more than Rs.5 Crores of investment in plants and machinery. In-Service sector Small enterprise is an enterprise with more than RS.10 lakhs but not more than Rs.2 crores of investment in plant and machinery.
Medium Enterprise: In the manufacturing sector Medium enterprise is an enterprise with more than Rs. 5 crores but cannot exceed Rs. 10 crores of investment in plant and machinery. In-Service Sector medium enterprise is an enterprise with more than Rs.2 crore but cannot exceed Rs. 5 crore of investment in plant and machinery.
Micro Enterprise: In the Manufacturing sector Microenterprise is an enterprise with less than Rs. 25 lakhs of investment in plant and machinery. In the service sector, Micro enterprise is an enterprise with not more than Rs.10 lakhs of investment in plant and machinery.
Collateral Free loans from banks:
Protection against delayed payment
Concession in electricity bill
Exemptions under direct taxes
Waiving off stamp duty and registration fees.
Eligible for industrial promotion subsidy.
Hindu Undivided family
Private limited company
One person company
Limited liabilities partnership
Proof of ownership of premises such as lease deed, Property tax receipt, possession letter.
Rent receipt/ NOC (No objection certificate) from the landlord is required in case the premises are arranged on a rental basis.
PAN card of the proprietors/ partners/ directors.
Copy of partnership deed
Copy of Memorandum and Articles of association in case of the private limited company along with the Board's resolution authorizing the director to sign the application.
Bank Account statement
Purchase bill of machinery installed
1. What is MSME Registration?
MSME registration is a government scheme that enables the registration provided to Micro Small, Medium-sized enterprises.
2. How to get MSME Registration?
There is no compulsion to get MSME registration but it is advised to do so because it provides various benefits to the enterprise that are registered under the MSME Act. After getting provisional MSME certificate you can begin with your production and can also apply for a permanent certificate which will give you more advantage and will save you from a lot of inconveniences later on. Always apply for provisional registration at the initial stage of the business.
3. Is MSME Registration is Compulsory?
As mentioned above it is not mandatory to get MSME Registration but it is advised to get it as it provides various benefits to the enterprise. Many businesses opt for it over other registration as it quite a simple and easy process.
4. In which states you provide MSME Registration?
We provide MSME Registration in all 29 states of India.
5. What are the documents required for MSME Registration?
Pan card of all the directors/partners.
Proof of ownership of premises such as letter, Agreement/property tax receipt
Bank account statement
The stated time period of product
6. What are the benefits of MSME Registration?
With the help of MSME Registration you can get the following advantages easy approval for license and registration, Can get collateral-free loans from banks, Concession in electricity bills and you would also be eligible for Industrial promotion subsidy.
7. Who can apply for MSME Registration Certificate?
Private limited company, One Person Company, Sole proprietor, Producer Company, partnership firm, co-operative societies and many more can apply for MSME Registration.
8. How long MSME Provisional Registration certificate is valid?
The validation of MSME provisional Registration is for 5 years and if in case the unit is still not under operational then you can re-apply for it. As soon as you start with the operation you can easily apply for the permanent one.
9. How does MSME/SSI help me to get a loan from a bank?
MSME Is Recognized by all the banks and institutions. Banks prefer MSMEs instead of the normal enterprise to give loans. The possibility of getting a loan is much higher in the case of MSME. It can also get you concession in the interest rate.
10. What is the need to apply before commencing operations?
It is advisable to get PRC (Provisional SSI Registration) before starting your operation in your enterprise. It will work smoothly and will also help you out with particular NOCs and clearances from regulatory bodies.