How To Register Under Msme
by CorpSeed Pvt Ltd Environment | Compliance | FinanceThe
other name of MSME is Micro, Small and
Medium Enterprises. In India, MSME industries are the
lifeblood of the economy
The
contribution of MSME sector is 45% of India’s Total Industrial Employment, 50%
of India’s Total Exports and 95% of all industrial units of the country and these
industries manufacture more than 6000 types of products (As per msme.gov.in).
When these industries grow, the economy of the country automatically grows as a
whole and flourishes. These industries are also called small-scale industries
or SSI’s.
Registration
Process
·
Registration process
is done through both online and offline procedure.
·
Aadhaar Number is
mandatory for registration.
·
File an online form
using Udyog Aadhaar Registration.
·
For the
verification process, one can use e-Aadhaar OTP.
·
Prior to
commencement of business, provisional registration is issued by MSMEs
·
Provisional
Registration is valid for 5 years or 60 months.
·
Provisional
registration assists in obtaining bank loans and in applying for NOC from the
regulatory authorities.
·
After the
commencement of business, entrepreneurs can apply for Permanent License.
·
Permanent License
comes with Lifetime Validity. It can also be cancelled under special
circumstances.
Benefits of MSME Registration
1. The bank loans become cheaper due to the MSME registration as the interest rate is very low around ~ 1 to 1.5% and is even
lower than interest on regular loans.
2. There is various tax rebates offered to MSME.
3. It also allowed credit to be carried forward for minimum
alternate tax (MAT) for a period of up to 15 years instead of 10 years
4. Many government tenders are only open to the MSME
Industries.
5.
6. As many rebates and concessions are available as MSME once
registered the cost getting a patent done, or the cost of setting up the
industry reduces
7. For government license and certification, business
registered under MSME is given higher preference
Documents Required for MSME
Registration
Documents
required for MSME registration are as follows:-
·
Aadhaar number
·
PAN number
·
Address of the business
·
Bank account number
·
The basic business
activity
·
NIC 2 digit code
·
Investment details
(Plant/equipment details)
·
Turnover details (as per new
MSME definition)
·
Partnership deed
·
Sales and purchase bill
copies
·
Copies of licenses and bills of
purchased machinery
ELIGIBILITY
FOR MSME REGISTRATION
Following is eligibility for MSME Registration:-
MSME – Merged Criteria: Investment and Annual Turnover |
|||
Sector/Enterprise Type |
Micro Enterprise |
Small Enterprise |
Medium Enterprise |
For both Manufacturing & Services
Sector |
Investment is less than Rs. 1 crore Turnover less than Rs. 5 crore |
Investment less than Rs. 10 crore Turnover up to Rs. 50 crore |
Investment less than Rs. 50 crore Turnover up to Rs. 250 crore |
FEES:-
There is no government fees required
for MSME Registration. A fee charged by many portals is basically registration
fees.
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Created on Aug 27th 2020 02:25. Viewed 452 times.