Description

MSME Registration

 ₹ 1,500/- (inclusive all)

  • Discussion and consultation for the requirement
  • Collecting the required documents
  • Preparation and verification of Application
  • Registering the application with ministry of MSME
  • Certificate of registration under MSME

Documents Requirements

  • PAN Card

A Copy of PAN card of the business entity; and of director or partner, if applicable

  • Aadhar Card

A Copy of proprietor’s Aadhar card or of director(s) or partner(s) in other cases like Udhyog Aadhar Registration

Procedure

Day 1 – Collection

  • Discussion and consultation for the requirement
  • Collecting the required documents

Day 2 – Preparation and submission

  • Preparation and verification of Application
  • Registering the application with ministry of MSME
  • Certificate of registration under MSME

Knowledge Portal

What is MSME?

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME  industries are the backbone of the economy.

The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per msme.gov.in). When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s.

Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME act. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

The MSME became operational on October 02, 2006. It was established to promote, facilitate and develop the competitiveness of the micro, small and medium enterprises.

Advantages of MSME Registration

1.Subsidized rates of loan

Loan support to Micro, Small and Medium industry is promoted by the government through -distinctly prescribed norms. The registered entity would be able to get their loans passed at a lower rate of interest and with much ease because of the subsidized rates offered to MSME registrants.

2.Avail 50% rebate on TM application

Government fees on Trademark Application for entities such as Company, Partnership Firm, and LLP are higher compared to individual and proprietorship firms. These entities may claim a 50% rebate on the Government fees by submission of an MSME registration certificate. Similarly, there is a rebate prescribed in Patent registration also.

3.Protection against Delayed payment of Buyers

MSME registered businesses enjoy protection against delayed payment of buyers. When the buyers have accepted the goods or services, they are liable to pay on time.

4.Credit Guarantee Scheme

This is also known as the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE). It is more supportive of small scale industries that provide the credit and income input from various sources to support industries which are under struggle.

Frequently Asked Questions

1.Which entities are eligible for registration under MSME?

The manufacturing and service industry can obtain MSME online registration subject to provided classification. Further, the enterprise can only be registered if the concerned activities are included under the classification provided for the registration purpose.

2.Which activities are excluded from the registration?

With notification issued dated 27.06.2017, the ministry has excluded activities of wholesale or retail trading; Fishing and aquaculture; Forestry and logging; and more. Business entities engaged solely into activities falling under such categories cannot make an application for registration.

3.Whether MSME registration is mandatory for all entities?

No, this is a voluntary registration and not compulsory. The entities obtain registration due to benefits and subsidies that are granted by the government in this regard.

4.Whether Aadhar card is mandatory for the registration?

Yes, the Aadhar card of the applicant is mandatory for registration. In case, the applicant is other than a proprietor, Aadhar card of the company’s director or LLP’s partner is required.

5.Do I receive an MSME registration certificate?

Yes, the certificate is provided in a soft copy by the Government on the registered email id of the applicant or entity. The certificate is available on Udyog Aadhar portal and can be downloaded with help of applicant’s Aadhar number.

6.How does SSI/MSME help me get a loan from a bank?

All financial institutions, including the major banks, recognize MSMEs/SSIs and have devised special schemes for them. MSMEs and SSIs are earmarked for priority sector lending. This increases the likelihood of you being granted a loan considerably. Major Indian Banks also provide loans to MSMEs at lower interest rates. You may also expect to get preferential treatment in case of any future delay in repayment.

7.Can existing and new businesses both apply?

Yes, an existing and new business can apply for MSME/Udyam Registration, provided the existing unit is functioning and meets the threshold limits for registration. UAM Registration has to be re-registered for Udyam registration to avail the benefits of MSME.

8.What is the validity of the certificate?

There is no expiry of the Udyam Registration Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.

9.Do I need multiple registrations for manufacturing plants in different cities?

No. The MSME/Udyam Registration Certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.