MSMEs in India is governed by The Ministry of Micro, Small & Medium Enterprises. MSME Registration is completed as per the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. MSME Registration is important, as it allows the establishment to take advantage of the various government schemes.
An Overview of MSME Registration
Micro, Small, and Medium Enterprises (MSMEs) mainly contribute to the country's socio-economic development. MSMEs in India are governed by the Ministry of Micro, Small & Medium Enterprises. MSME Registration is completed as per the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. MSME Registration is important, as it allows the establishment to take advantage of the various government schemes.
The Micro, Small, and Medium Enterprises (MSMEs) contribution is around 45% of the total industrial employment,50 % of Total Exports, 95 % of all the industrial units of the country, and more than six thousand different kinds of commodities are manufactured in these MSMEs according to the official data provided on the official website "msme.gov.in."
The growth of Micro, Small, and Medium Enterprises (MSMEs) is essential for the development and growth of India's economy. Micro Small and Medium Enterprises or MSMEs are also known as Small Scale Industries (SSIs).
What is MSME?
Micro, Small, and Medium Enterprises, or generally known as MSMEs. According to the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006, the MSME establishment are classified into two types, which are as follows:
Manufacturing Enterprises are the enterprises that are indulged in the manufacturing and production of goods in the enterprises.
Service Enterprises are enterprises that are indulged in rendering or providing services.
Eligibility criteria for Registering an MSME
The difference between service and manufacturing enterprises is eliminated by the recent Atma-nirbhar Bharat Abhiyaan Economic Package commenced by the finance minister of our country Nirmala Sitharaman. The yearly speculation and turnover amount are made equivalent to enterprises involved in both the service and manufacturing sectors.
Benefits of MSME Registration
The benefits of MSME Registration are as follows:
The bank loans provided to MSMEs are very cheap as the interest rate is 1 to 1.5% for registered Micro, Small, and Medium Enterprises in India. The low-interest rate for Micro, Small, and Medium Enterprises helps them take calculated risks and grow.
There are various tax subsidies provided by the government of India to the registered MSMEs.
Minimum Alternate Tax is also allowed the registered Micro, Small, and Medium Enterprises to be carried forward for 15 years instead of 10 years;
Various government tenders are only accessible to MSME Industries.
The registered MSME gets easy access to loans/credit.
After MSME registration, the cost of registering a patent is less, and setting up the industry is shortened as many concessions and reimbursement are accessible to MSMEs.
The industries registered as MSMEs are given preferences for government certification and license.
There is a one-time settlement fee for all non-paid amounts.
Necessary Documents for MSME Registration
Following is the list of necessary documents and information essential to providing in the application form for MSME registration:
Applicants Aadhar card;
Applicant
S name as mentioned in the Aadhar card;
Applicants social category, whether the applicant belongs to the General, SC, ST, or OBC Category;
Gender of the applicant;
Physical status of the applicant, whether he/she is physically disabled or not;
Enterprises' Name;
PAN card
Enterprises registered address
MSME's date of Incorporation
If any, previous registration particulars of the enterprise.
Bank details of the enterprise.
The activities in which the enterprise is involved (Manufacturing or Service)
The NIC code;
The information on investment in machinery and plant
Eligible Entities who can Apply for MSME Registration
Any person who satisfies any one or multiple criteria can apply for MSME Registration:
Someone who is a part of the Hindu Undivided Family (HUF).
Someone who owns a Limited Liability Partnership (LLP).
Any person who is the owner of a partnership firm having any other entity as his/her association;
Individual who is a sole proprietor;
Individual who is an owner of One Person Company (OPC).
Someone who owns a Private Limited Company.
Individual who is the Production Company owner, which is actively involved in the production of commodities.
Individual who is having Co-Operative societies.
MSME Registration Procedure
Fill the application form for MSME Registration.
The applicant has to provide the necessary information in the registration application form for registering Micro, Small, and Medium Enterprises(MSMEs). The application form is given to the concerned government authorities. The applicant has the option of filing the application on the official online portal or he/she can also file a registration application by visiting the concerned government office.
Prepare All Required Documents
The applicant has to collect all the essential documents, as prescribed in the application form for registering Micro Small and Medium Enterprises. Usually, gathering all the essential documents takes about one to two working days.
Filing of the MSME Application
The applicant has to upload all the essential documents and submit the registration application form to the MSMEs' Registrar. The regulatory authorities will do the verification of the authenticity of the submitted documents. The processing and verification process is not very long; it usually takes two to four working days.
Application Approval and Certificate Issuance
After the regulatory authorities are satisfied with the applicant's submitted information and documents, the authorities will issue a registration certificate, and the applicants Micro Small and Medium Enterprise are registered.
Conclusion
MSME Registration is important, as it allows the establishment to take advantage of the various government schemes. MSMEs in India are governed by the Ministry of Micro, Small & Medium Enterprises. MSME Registration is completed as per the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.