MSME Registration: The Engine of Growth for Indian Economy

by Swarit Advisors Financial Service Consultant

In India, the Micro, Small and Medium Enterprises (MSME) have played a significant role in the growth of the economy. As our economy is mainly dependent upon the agriculture and small business, the MSME sector being the spine of the economy is highly encouraged by the government. Further, it is significant to note that the Indian MSME sector is the second-largest in the world, after China. And as per the statistics of the year 2017, in India, there were about 36 million MSMEs. Hence, this is the reason why the government of India always comes up with a different set of schemes and policies relating to the MSME sector.

To avail the various sorts of incentives, schemes, subsidies, and benefits provided by the government to the MSME entrepreneurs, one must go for obtaining MSME registration. The registration can be acquired either under the SSI Registration or under the MSME Registration act with the department concerned. Therefore, acquiring MSME registration leads to transparency and accountability in the working of the MSME sector.

Further, the MSMED (The Micro, Small and Medium Enterprises Development) Act, 2006 provides for the measures regarding the promotion, enhancement of competitiveness, development, and growth of MSME and also the establishment of the National Board for MSME Registration.

What are the Benefits of obtaining MSME Registration?

If an applicant wishes to obtain a Micro Small Medium Enterprises registration, he or she becomes eligible for availing several benefits under the Central and State Government schemes. However, availing bank loans and government subsidies are the primary benefits of SSI or MSME registration. Other main benefits are as follows:

The priority sector lending
The Excise tax exemption
The Power tariff subsidies
The Capital investment subsidies
The Cheaper bank loans with interest rates lower by 1 or 1.5 percent
Easy access to credit with the facility of Easy loans without credits
Higher preference is given in respect of the government license and certification
Ease in availing bank loans
Hassle-free opening of the bank account
The Octroi benefits
Participation in the International Trade Fairs
Exemptions under the Income Tax
Waiving off the stamp duty and the registration charges
The Credit Rating and NSIC
Reimbursement available under the Bar Code Registration
Protection in case of any delay
Industrial Promotion Subsidy
ISO Certification Benefit
Subsidy on the Patent Registration
Preference given in the government tenders

What are all eligible for obtaining MSME Registration?

Anybody can become eligible for obtaining MSME Registration if the following criteria’s are fulfilled-

In the case where the applicant belongs to the Hindu Undivided Family
If in case the individual is a sole proprietor. The term sole proprietor does not include the business owner
In cases where an entity is working as a partnership or is having a partnership firm with another party in association
If an individual is running an OPC (One Person Company)
Where the entity has co-operative societies
In the case where the individual concerned runs a private limited company
If the individual has a production company which produces materials
Or any other undertaking.

What are the Documents Required for obtaining MSME Registration?

In order to acquire the MSME registration, the individual concerned is required to submit the following listed documents to the concerned body –

Identity proof such as the PAN Card details of all the partners or directors or proprietor
Address proof in the form of the Aadhar card or the Voter ID Card or Driving license or Passport etc. of all the concerned partners or directors or proprietor
Registered Business address proof in the form of the lease agreement or the possession letter or property tax receipt or allotment letter
If in case the office premise is on rent, then the NOC (No-Objection Certificate) from the concerned landlord
Utility bills such as the electricity bills, water tax, etc. not older than two months
Copy of the purchase bill regarding every raw material purchased
Copy of the sale bill for every end product
A copy of the Industrial license issued under the Industrial Development and Regulation Act, 1951
Both the Memorandum of Association (MOA) and Articles of Association (AOA) of the concerned company. Further, the Certificate of Incorporation (COI), if in the case, the company has a Private Company Registration.
Copy of the partnership deed in the case where the applicant has a partnership firm
Bank account statement
Purchase bill of the machinery installed
A duly stamped affidavit on Rs. 10/- non-judicial stamp paper. Further, it should have the attestation of the Notary Public offering the status of the machinery installed, power requirement, etc.
Bills regarding the installation and purchasing of the plant and machinery

What is the Procedure for obtaining the MSME Registration in India?

The procedure for MSME registration is pretty simple and easy. Any individual can easily opt for the online MSME registration. Hence, the following are steps involved in the process to get the certificate for MSME registration without any hassle and problems–

For obtaining the MSME registration, an individual or the concerned applicant needs to file a form either offline or online. For filling the online form, the applicant concerned can visit on the official website of the Udyog Aadhar and then login as an entrepreneur over there.
In the application concerned, the applicant needs to fill in the essential details of the industry he or she wants to operate.
Together with, he or she must provide the mandatory required documents like the Aadhar number, industry name, address, bank account details, and other commonly required details.
Further, the applicant needs to provide some of the self-certified certificates.
Once he or she has filled up the form completely and have annexed all the documents, wait for two or three working days.
Lastly, when the applicants concerned have received the MSME registration number, he or she can go for downloading the MSME registration certificate from the official website of Udyog Aadhar.