MSME is a short abbreviation for Micro,
Small and Medium enterprise. To provide timely assistance and legal aid to
small and medium sized enterprises government enacted the Micro Small and
Medium Enterprises Development act (MSMED. Quoted for low investment
entrepreneurship, it includes all manufacturing and trading concerns named
under:
l
Micro Enterprise:
having investment in plant and machinery below Rs. 25 lakh for manufacturing
concerns and below Rs 10 lakh for businesses engaged in rendering of services.
l
Small Enterprise: having
investment above Rs 25 lakh but below Rs 5 crore for manufacturing concern and
Rs 10 lakh to Rs 2 crore for businesses providing services.
l
Medium Enterprise : having
investment above Rs 5 crore but below Rs 10 crore for manufacturing concerns
and Rs 2 crore to Rs 5 crore in business equipment engaged in rendering of
services.
Documents
Required for MSME Registration Online
|
l Pan
details of applicant/partners/directors.
|
l Aadhaar
details of applicant/partners/directors.
|
l Proof
of business premises such as lease agreement/property tax receipt/electricity
bill
|
l Copy
of business purchase bill or sales bill.
|
l Copy
of Partnership deed in case of firm registered as partnership.
|
l Copy
of MOA & AOA and declaration of directors in case of companies.
|
l Copy
of industrial license as obtained under Industrial Development and Regulation
Act,1951
|
l Bank
details of enterprise/applicant
|
l Legal
affidavit attested by Notary Public
|
Why to Register as MSME?
MSME registration is a visionary concept
of government to distinguish small sized and low investment oriented firms to
provide them all legal aid possible by framing economic incentives for them
under the MSMED Act.
Once an enterprise gets registered, it
becomes qualified to reap all benefits of the act without making any
declaration or payment to any intermediary.
Some common benefits given to registered MSME includes :-
Some common benefits given to registered MSME includes :-
ü
Easy Sanction of
business loans
ü
Tax Rebates
ü
Exemption in clerical
charges, Export duties etc
ü
Benefits of Development
credit guarantee schemes.
ü
Easy licensing
ü
Training Facilities
ü
Fast Resolution of legal
disputes.
FAQs on MSME
Registration
Q. How
MSME Registration helps in easy sanction of loans?
Under MSMED act, an enterprises gets
special acknowledgement to be eligible for all financial schemes announced by
government from time to time. Registered documents of business under the act if
provided to financial institutions would ensure them better trust on activities
of business and in return the enterprise will be able to raise finance from the
institutions at a favourable rate announced by government.
Q. Why Permanent Registration Certificate
is required?
PRC enables business to transact in
following:
ü
Income Tax rebates
ü
Getting tariff
exemptions
ü
To renew MSME
registration after 5 years
ü
To apply for benefits
announced for investment and or in purchase policies by government.
Q. When MSME Registration Certificate is
Issued?
Once the online registration is completed
with all required documents, MSME Registration certificate is issued
immediately on email id of applicant..
Q. Does MSME Registration require the same
process as SSI Registration?
There
is no difference between MSME Registration and SSI Registration. Earlier MSME
Registration was known as SSI Registration.
