MSME stands for Micro, Small, and Medium Enterprises. 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.
MSMEs have played crucial role in generating huge employment opportunities at comparatively lower capital cost than large industries. Moreover, they have helped in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.
In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions:-
i) Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
ii) Service enterprises – engaged in providing or rendering services
The following is the MSME classification, where the investment and annual turnover, both are to be considered for deciding an MSME:
|Investment & Annual Turnover||< Rs.1 crore & < Rs.5 crore||< Rs.10 crore & < Rs.50 crore||< Rs.50 crore & < Rs.250 crore|
MSME Registration Process:
Businesses who want to avail benefits announced by the Government for MSMEs will need to register their business on the ‘Udyog Aadhaar Memorandum (UAM) portal’. The registration process is quite simple and free for every user.
Below mentioned are the steps to follow for the Registration Process for MSME:
STEP 1: Fill The Application Form For MSME Registration
STEP 2: Preparation Of The Required Documents
STEP 3: Filing Of The Application Form For MSME
STEP 4: Application Approval And Certificate Issuance
Who is eligible to apply for MSME Registration in India?
- Any person who is part of a Hindu Undivided family;
- Any person who has a limited liability partnership;
- Any person who owns a partnership firm having another party as his/her association;
- Any person who is a sole proprietor;
- Any person who is an owner of a One Person Company;
- Any person who has a private limited company;
- Any person who owns a production company which is actively involved in the production of materials.
- Any person who is having co-operative societies.
Documents Required for MSME Certificate:
Following are the list of documents and information that one is required to provide as per the application form for MSME Registration in India:
#Pvt. Ltd. /Public Ltd./OPC
i) Company PAN card
ii) MOA, AOA & Incorporation Certificate
iii) Company Address Proof
#LLP & Partnership Firm
i) Firm PAN card
ii) LLP Agreement/ Partnership deed
iii) Firm Address Proof
i) Proprietor’s PAN card
ii) Shop Act / Ghumasta License
iii) Address proof of Firm
Benefits of MSME Certificate:
- It is helpful in bidding for and obtaining government tenders
- An MSME certificate gets 15% import subsidy on loans for fully automatic machinery
- It becomes easy to get licenses, approvals and registrations for any SME
- An MSME with the registration certificate can get the ISO certificate expenditure reimbursed
- It helps in getting low interest rates
- Registered MSMEs gets tariff and tax & capital subsidies, as well as exemption under Direct Tax Laws
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Note: This Post was last updated on January 21, 2023
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