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MSME Registration In India

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

MSME Classification:

The following is the MSME classification, where the investment and annual turnover, both are to be considered for deciding an MSME:

MSME CLASSIFICATION

CriteriaMicroSmallMedium
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

#Proprietorship Firm

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

For more details contact out team at +91-7991109093 or drop email us at [email protected]

Note: This Post was last updated on January 21, 2023

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation i.e. January 21, 2023. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, We assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. We assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL WE SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.

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Sunita

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