Articles

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:

  1. The priority sector lending
  2. The Excise tax exemption
  3. The Power tariff subsidies
  4. The Capital investment subsidies
  5. The Cheaper bank loans with interest rates lower by 1 or 1.5 percent
  6. Easy access to credit with the facility of Easy loans without credits
  7. Higher preference is given in respect of the government license and certification
  8. Ease in availing bank loans
  9. Hassle-free opening of the bank account
  10. The Octroi benefits
  11. Participation in the International Trade Fairs
  12. Exemptions under the Income Tax
  13. Waiving off the stamp duty and the registration charges
  14. The Credit Rating and NSIC
  15. Reimbursement available under the Bar Code Registration
  16. Protection in case of any delay
  17. Industrial Promotion Subsidy
  18. ISO Certification Benefit
  19. Subsidy on the Patent Registration
  20. 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-

  1. In the case where the applicant belongs to the Hindu Undivided Family
  2. If in case the individual is a sole proprietor. The term sole proprietor does not include the business owner
  3. In cases where an entity is working as a partnership or is having a partnership firm with another party in association
  4. If an individual is running an OPC (One Person Company)
  5. Where the entity has co-operative societies
  6. In the case where the individual concerned runs a private limited company
  7. If the individual has a production company which produces materials
  8. 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 –

  1. Identity proof such as the PAN Card details of all the partners or directors or proprietor
  2. 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
  3. Registered Business address proof in the form of the lease agreement or the possession letter or property tax receipt or allotment letter
  4. If in case the office premise is on rent, then the NOC (No-Objection Certificate) from the concerned landlord
  5. Utility bills such as the electricity bills, water tax, etc. not older than two months
  6. Copy of the purchase bill regarding every raw material purchased
  7. Copy of the sale bill for every end product
  8. A copy of the Industrial license issued under the Industrial Development and Regulation Act, 1951
  9. 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.
  10. Copy of the partnership deed in the case where the applicant has a partnership firm
  11. Bank account statement
  12. Purchase bill of the machinery installed
  13. 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.
  14. 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–

  1. 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.
  2. In the application concerned, the applicant needs to fill in the essential details of the industry he or she wants to operate.
  3. 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.
  4. Further, the applicant needs to provide some of the self-certified certificates.
  5. Once he or she has filled up the form completely and have annexed all the documents, wait for two or three working days.
  6. 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.

Sponsor Ads


About Swarit Advisors Junior   Financial Service Consultant

0 connections, 0 recommendations, 14 honor points.
Joined APSense since, December 24th, 2019, From Noida, India.

Created on Feb 21st 2020 04:24. Viewed 650 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.