MSME Registration: Over the last few decades, Micro Small and Medium Enterprises (MSME) sector has emerged as a highly exciting and active sector of the India Economy. The Government of India’s prime motive is “enterprise creation” in the Indian Economy and wants to produce a wide range of products to meet the requirement of the local market and the global market. MSME creates employment and self-employment which strengthens the Indian Economy.
Under the MSMED legislation, Micro, Small, and Medium-Sized Enterprises (MSMEs) in the manufacturing and service sectors can get MSME Registration or SSI/Small Scale Industry Registration. Although MSME online registration is not required, it is always recommended to small and medium businesses because it gives a number of advantages. Benefits such as borrowing rates charged would be significantly lower, as would tax breaks, capital investment tax breaks, and other government assistance. We can assist your company in obtaining MSME Registration online so that you may take advantage of a variety of perks.
WHAT IS MSME?
Definition as per the Government of India
The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:
Enterprises engaged in the manufacture or production, processing, or preservation of goods as specified below:
A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh
A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore
A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore
In the case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006.
Enterprises engaged in providing or rendering services and whose investment in equipment (original cost excluding land and building and furniture, fittings, and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below.
A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh.
A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
This initiative would aid all entrepreneurs, including first-generation women, scheduled tribes, scheduled castes, handicapped, ex-servicemen, marginalized populations, and others, in this endeavor by enabling them to start businesses.
REQUIREMENTS FOR MSME/UDYAM REGISTRATION
Following documents are required for MSMI
PAN Number and GST Number enterprise
Plant location and office address
Bank Account details of the enterprise
Turnover of the enterprise over the last 2 years
Written Down Value of investment made in the business
Type of Income-tax return filed in the previous year
Date of incorporations/ commencement of business
Nature of business activity being carried out
No. of persons employed by the enterprise along with their gender
PROCESS OF MSMI/SSI REGISTRATION
Documentation - Firstly, prepare/collect all the documents which are required for the MSMI/SSI Registration; all documents are mentioned above.
Submits Application - After collecting all documents, submit an online application with the required documents to the MSME/Udyam office.
Scrutiny - The Udyam officials will verify the documents will check whether application information is correct or not.
Grant of registration certificate - Once application will be approved registration is done. Udyam will grant MSME registration Certificate.
Note: The process of MSMI/SSI Registration vary from State to State.