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MSME REGISTRATION
 
 
  • MSME stands for Micro, Small and Medium Enterprises. The MSMEs are key contributors to the socio-economic development of the country. The MSMEs cover almost 95% of industrial units, 50% of exports and 45% of employment. Opting for MSME registration is not a statutory mandate; however, it is advisable to obtain the benefits of the Mirco, Small and Medium Enterprises Act. The initiative of MSME started functioning in 2006 to create a competitive environment and encourage small businesses to ensure speedy development and boost the economy.
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  • The MSMEs are categorized in manufacturing sectors and service sectors. These two sectors have been further classified based on the investment. The classification has recently been reset based on investment and annual turnover to create a greater scope of growth for the MSMEs. Below is the reset classification of the micro, small and medium enterprises.
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  • One can opt for MSME registration online and offline as well. The registration process for both the manufacturing sectors and service sectors can be done on a single platform of msme.gov.in. Following is the process of MSME registration.
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    Fill up the form for MSME registration
     
  • Go to the website of the MSME online application.
  • Fill up the form online or take a print out and fill-up the form offline.
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    Prepare the documents
     
  • Prepare the documents with the assistance of the experts at MSME.
  • The process can take up to 2 working days.
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    Make the application
     
  • Submit the application form coupled with the required documents.
  • After submitting the application, verification takes place.
  • The verification can take up to 2 working days.
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    Approval and registration
     
  • * The registration will be done if the application has been approved.
  • * The MSME certificate will be delivered to you.
  • * The MSME registration application form contains the following components.
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  • * Aadhaar details, PAN details, social category and gender of the entrepreneur.
  • * Name and type of enterprise.
  • * Address and contact details.
  • * Investment amount.
  • * Employee number.
  • * The MSME registration fee is Rs. 1,999. Applicants can pay the fees using the online payment gateways. However, keep the investment limit in mind while applying for the registration.
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    MSME Registration Benefits
     
  • * MSME registered enterprises can avail loans at lower interest rates than regular loans. Loans can be availed at an interest rate of as low as 1% to 1.5%.
  • * MSME certificate holders can enjoy tax exemption under the MSME Act.
  • * MAT or minimum alternate tax can be extended to 15 years from the regular 10 years.
  • * MSME registered enterprises gets preference for government-issued license and certificates.
  • * By getting registered under MSME, the cost of patenting and industry set up reduces due to various rebates and concessions.
  • * Many government tenders are given to only MSME registered enterprises.
  • * An MSME gets easy access to credit.
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    Documents Required for MSME Registration
     
  • To avail, the MSME registration benefits the following documents are required:
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  • * Aadhaar card
  • * Property paper
  • * Rent agreement
  • * Cancelled cheque
  • * Partnership deed (for partnership firms)
  • * Memorandum of Association (for companies)
  • * Articles of Association (for companies).
  • * PAN
  • * The social category of the applicant (General, SC, ST or OBC)
  • * The physical ability of the applicant (disabled or not).
  • * Some additional documents required for the registration are as follows.
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    Business address proof
     
  • Self-own property: allotment letter, property tax slip, possession letter.
  • Rented property: rent receipts and NOC from the property owner.
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    Company registration proof
     
  • Photocopy of sale bill.
  • Photocopy of purchase bill (of raw material).
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    License and purchase bills for machinery
     
  • Photocopy of an industrial license.
  • Bills of purchasing machinery and installations.
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