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MSME REGISTRATION

“Want to avail benefits and subsidies offered from various Government initiated schemes.

Get your business registered under MSME”

What are Micro, Small and Medium Enterprise?

Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. The existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below: Further, MSMEs are classified in two categories, such as manufacturing enterprises and service enterprises.

 

MSME Classification
Criteria Micro Small Medium*
Investment Rs.1 crore Rs.10 crore Rs.50 crore
Annual Turnover Rs.5 crore Rs.50 crore Rs.250 crore

Benefits of MSME Registration

 Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
 There are various tax rebates offered to MSME.
 It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
 There are many government tenders which are only open to the MSME Industries.
 They get easy access to credit.
 Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
 Business registered under MSME are given higher preference for government license and certification.
 There is a One Time Settlement Fee for non-paid amounts of MSME.

Documents Required for MSME Registration

The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.

Business Address Proof
Copies of Sale Bill and Purchase Bill
Partnership Deed/ MoA and AoA
Copy of Licenses and Bills of Machinery Purchased

Frequently Asked Questions

A. Yes, MSME registration has been replaced with the Udyog Aadhar registration. If any micro, small and medium industries want to start any business; they need to do the registration with MSME/Udyog Aadhar. This registration with MSME/Udyog Aadhar can be done in two ways online and offline. This facility provides the business with a lot of benefits and subsidies.
A. Yes. For registration under the Udyog Aadhar scheme, aadhar card is compulsory. In case an applicant is other than the proprietor, the Aadhar card of the partner and the director will be required.
A. Yes, an existing and new business can apply for MSME/Udyog Aadhar registration. Provided the existing unit is functioning and meets the threshold limits for registration.
A. There is no expiry of the Udyog Aadhar Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.
A. No. MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.
A. No. The MSME/Udyog Aadhar certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.
A. Ministry of Micro, Small and Medium Enterprises (MSME) has clarified as per notification S.O 2576 (E) dated 18.09.2015 and subsequent notification no S.O 85(E) dated 10.1.2017, activities that would be specifically not included in the manufacturing or production of commodities or rendering of services as per Section 7 of the said Act. 1. Forest and Logging 2. Fishing and aquaculture 3. Wholesale, retail trade and repair of motor vehicle and motorcycles 4. Wholesale trade except for motor vehicles and motorcycles. 5. Retail Trade Except of Motor Vehicles and motor cycles 6. Activities of households as employees for domestic personnel 7. Undifferentiated goods and services producing activities of private households for own 8. Activities of extraterritorial organisations and bodies