MSME - Micro Small And Medium Enterprises Registration
MSME stands for micro, small and medium enterprises. MSME is the backbone of any economy. Around 70% of the Indian GDP comes from the SME and MSME sector. The gain of this business is it requires fewer funding, thus generating large-scale work and reducing inflation and benefiting the issue of structural unemployment. Our government of India launched a scheme called the MSMED Act so as to support the MSME - Micro Small And Medium Enterprises business by providing them special incentive schemes and subsidies. A company can gain many benefits by registering under MSME. Here we have explained the complete procedure to get Micro Small And Medium Enterprises Registration.
MSME - Micro Small And Medium Enterprises can be classified into 2 categories
1. Manufacturing unit
If the level of investment is less than Rs. 25 lacs then it comes under micro business.
If the level of an investment in the company is less than Rs. 50 lakh then it comes under small business.
If the level of investment comes fewer Rs. 100 lacs then it comes under medium business.
2. Service unit
If the level of investment comes under Rs. 10 lacs then it is a micro business.
If the level of investment comes under Rs. 20 lacs then it is small business.
If the level of investment comes under Rs. 50 lacs then it comes under medium business.
Benefits of MSME - Micro Small And Medium Enterprises Registration
There is an elaborate list of the benefits acquired by MSME registration. The Government of India issued exclusive rights to produce several goods to this sector only to ensure the MSME industry is not impacted by the strong rivalry on the market.
- One of the key advantages to companies in the context of regulation in this field is the reservation scheme. To ensure that the MSME industry is not impacted by strong rivalry on the market, the central government has given exclusive privileges to produce those goods only in this region. Under the Government Stores Procurement Plan, the central government has allocated the purchasing of more than 300 items solely from this market.
- Within this program, Micro and Small businesses will use a loan of up to 50 Lakh free of any collateral. When micro and small businesses are owned by disadvantaged and vulnerable citizens, RBI has instructed banks to target such companies for collateral-free loans.
- For production firms, where it is optional for providing services undertakings, it is mandatory to request an Entrepreneurial Memorandum. The banks are advised by the Indian Reserve Bank to assign those amounts of their loans for priority sectors such as agriculture, micro, small and medium-sized businesses, loans for their schooling to poor students, etc. Nonetheless, medium-sized companies are financially stable and do not come into a focus market. It means that the MSMEs earn the value of funding from banks via a business memorandum.
- Owing to the lack of sophisticated equipment, certain MSMEs may be not able to allow maximum use of their resources. Under the technical upgrade capital aid program, the government supports these businesses in updating facilities with the new technologies, enabling them to receive loans at low-interest rates from the banks.
Documents Required for MSME -- Micro Small And Medium Enterprises Registration
There is a list of documents one has to submit before getting registered for MSME. The documents required are-
- Business address proof
Proof of the premise ownership this includes allotment letter, possession letter, property tax receipt, lease deed. No proof of legal possession is required in case the unit has a municipal corporation license in its own name or in the name of any partner or director or if its proprietor.
- Copies of sale bill and purchase bill
A copy of the sales bill for each final product to be supplied must be sent by the company. In fact, a procurement bill will be sent for any raw material it would buy.
- Document of partnerships
The partnership contract and registration certificate shall be issued for partnership companies. Copies of the Report and Articles of Association shall be given if the business is a company. A copy of the Board's resolution approving the company's registration as an MSME is also required.
- Copy of Licenses and Bills of Machinery Purchased
In certain situations, a copy of an industrial license to be obtained by submitting to Govt is needed. India. In addition, all ordering and maintenance bills or receipts of plant and equipment must be preserved in safety and must be sent on request.
A declaration of guarantee on Rs. 10/- Non-judicial document properly certified by Notary Public with a suitable stamp showing the state of the facility, mounted equipment, power requirements, etc.
- Print of the document of official approval from the state's environmental control committee.
Eligibility required for MSME -- Micro Small And Medium Enterprises Registration
You are eligible for MSME if you are one of the following
Hindu Undivided Family
One Person Company
Private Limited Company
Limited Liability Partnership
Any association of persons
Co-operative societies or any other undertaking can obtain MSME registration in India.
MSME Registration Procedure the Official way
By visiting the government website and filling up the form, MSMEs can register themselves. This online portal allows lifetime valid MSME certificates within 2-5 working days. Both the service and manufacturing sectors can get these certificates. The process little bit confusing for a newbie is stated below
- First, the applicants need to complete their MSME form by filling up the details and submitted the requested documents
- If a person decides to register for more than one business, he/she may also register separately.
- To complete the registration process he or she has to submit the following documents. The documents which are required for registration are one's personal industry name, Aadhaar number, address, bank account details, and a few more common information like PAN card number, etc.
- All the certificates need to be self-certified certificates.
- If you want to do it through any government portal there is no registration required for the process.
- After filling up all the details, upload all the documents and you would be getting your registration number.
This process can sometimes take up a long time for budding entrepreneurs.
Our experts can help you make the registration process easier with a minimum service charge.
Simple Procedure to Get MSME Registration Certificate through our MSME portal
Just follow this simple process of MSME registration, these are the steps to get your business MSME Registration Certificate
Step 1: Visit the MSME Registration Website
Step2: Fill all the details on MSME Registration Form
Step3: Make the online payment for your MSME Application
Step4: One of the MSME registration executives will process your MSME Application official work
Step5: In 1-2 working days you will receive your MSME certificate in your registered email address
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services that provide the real benefits from the government like easy bank loans, take part in various government works from different schemes.
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Site Last Updated on 23-10-2019