Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly important, as it enables these enterprises in availing benefits from various government initiated schemes. MSMEs are classified in two categories, such as manufacturing and service enterprises.
How to register as an MSME?
MSMEs can register by simply visiting https://msme.gov.in/online-application and and filling the application form. and filling the application form. It’s an online portal that helps in the MSME registration process. Applicants can get MSME certificate with lifetime validity in 2-5 working days and this certificate is for enterprises in both manufacturing and service sectors. There is no limit with respect to the name used by an individual to register for new or existing businesses.
Registration Process for MSME
Complete the MSME form
Applicants are required to fill in all the details and submit the requested documents.
Preparation of Documents
Their experts will help in drafting the application and prepare documents for registering MSME as per the requested details. The process requires 1-2 working days to proceed to next level.
Filling MSME Application
Post the documents are prepared and submitted to MSME registrar; their experts will verify the submitted documents. This procedure requires another 2 working days.
Application Approval and Registration
Once your MSME application is approved, your company gets registered and related documents shall be sent to you.
Enterprises in manufacturing sector need to have less than Rs. 10 crore of investment in plant and machinery and Rs. 5 crore for the enterprises in service sector.
Eligibility for MSME Registration
- Enterprises which have invested in less than Rs. 10 crore in plant and machinery are not eligible
- Service enterprises should have invested in plant and machinery above Rs. 5 crore
- Enterprise in manufacturing and service industry should not exceed the maximum limit, hence will not be considered as MSME
- Aadhaar card
- Rent agreement
- Property paper
- Cancelled Cheque
- Company Registration i.e., Sale or Purchase Bill and PAN card
Business Address Proof
For self-owned premise: Lease deed, property tax receipt, possession letter, allotment letter, etc.
For rented premise: NOC from the landlord, rent receipts, utility bills or document evidencing the landlord’s ownership, etc.
The charges to get MSME certificate are Rs. 1999 (all inclusive) per certificate and can be paid by their secured gateways.
- Copies of Sale and Purchase Bills
- Partnership Deed
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Copies of Licenses and Bills of Machinery Purchased
Benefits of MSME Registration
- MSME registration helps in getting government tenders
- Under bank loan, 15% import subsidy on fully automatic machinery
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business
- Compensation of ISO certificate expenditure
- Helps in getting low interest rates
- Registered MSMEs gets tariff subsidies and tax and capital subsidies
- Gets exemption under Direct Tax Laws
MSME are classified into two categories, named Manufacturing and Service enterprises. The criteria defined in terms of investment in plant and machinery/equipment is listed below:
|Manufacturing Enterprises||Rs. 25 lakh||Less than Rs. 5 crore||Less than Rs. 10 crore|
|Service Enterprises||Rs. 10 lakh||Less than Rs. 2 crore||Less than Rs. 5 crore|
List of details to be provided for MSME registration on its application form
- Aadhaar number
- Name of Entrepreneur as per Aadhaar card
- Social category (General, OBC, SC/ST)
- Physically Handicapped
- Name of Enterprise
- Type of Organization (Proprietorship, Partnership Firm, Private Limited Company, Public Limited Company, Limited Liability Partnership, Cooperative Society, Hindu Undivided Family, Self-Help Group, Society or Trust)
- PAN Card
- Location/Address of Plant
- Country, State, District, City, Tehsil, PIN Code
- Office Address
- Mobile Number, Email ID
- Date of Commencement of Business
- Bank account number and IFSC code
- Business Activity of Enterprise
- NIC 2 Digit Code – choose primary activity
- Additional detail of enterprise
- Number of Employees
- Investment Amount in Plant and Machinery
Ques: How can I apply for MSME registration?
Ans: Any type of business can apply for MSME registration.
Ques: Is Aadhaar number mandatory for online MSME registration?
Ans: For MSME registration, Aadhaar card is mandatory.
Ques: Can MSME borrowers get collateral free loans from financial institutions?
Ans: Banks do not accept collateral or security for the loan amount upto Rs. 10 lakh.
Ques: Is credit score necessary for MSMEs?
Ans: No, credit score is not required for MSMEs.
Ques: What is the enterprise turnover criterion?
Ans: Micro enterprise turnover should be up to Rs. 5 crore. More than Rs. 5 crore and less than Rs. 75 crore is treated as small enterprises. Whereas enterprises with turnover above Rs. 75 crore and less than Rs. 250 crore is called as medium enterprise.
Ques: Do I get a hard copy or physical copy of the MSME certificate?
Ans: Government has initiated paperless work, so no physical copy is issued. However, the authority emails the certificate instead.