MSME Registration

MSME Registration

Micro, Small and Medium Enterprise

MSME are classified into two categories:

i. Manufacturing enterprise; and

ii. Service enterprise.

They are defined in term of investment in Plant and Machinery/ Equipment  as below

 MICROSMALLMEDIUM
Manufacturing EnterprisesRs 2,500,000Less than Rs 50,000,000Less than Rs 100,000,000
Service EnterprisesLess than Rs 10,00,000Less than Rs 20,000,000Less than Rs 50,000,000

MSME Registration Process

  1. To do the registration the small and medium scale industry owner has to fill a single form which he can do online as well as offline.
  2. If a person wants to do registration for more than one industry then also he/she can do individual registration.
  3. To do the registration he/she has to fill a single form which is available at the website which is listed below.
  4. The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details and some common information.
  5. In this, the person can provide self-certified certificates.
  6. There are no registration fees required for this process.
  7. Once the detail-filled and upload you would be getting the registration number.

Benefits Of MSME Registration

  1. 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.
  2. There are various tax rebates offered to MSME.
  3. It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
  4. There are many government tenders which are only open to the MSME Industries.
  5. They get easy access to credit.
  6. Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
  7. Business registered under MSME are given higher preference for government license and certification.
  8. 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