MSMEs stands for Micro, Small, and Medium Enterprises. They are one of the most integral parts of our economy. MSMEs have played crucial role in generating huge employment opportunities at comparatively lower capital cost than large industries.
Registering your company or business as an MSME and obtaining the Udyam Registration Certificate has tons of benefits and advantages backing it.
What is an MSME Certificate?
On successful registration, applicant get a certificate known as the MSME Certificate or Udyam Certificate. This certificate serves as evidence of registration under MSME Act.
The MSME Certificate proves that you are a registered small-scale business in India and thus eligible for all associated government benefits. Registering in MSME in India is not mandatory, but you should do it for benefits in business finance, loans, credit eligibilities, and taxation.
Eligibility for the MSME Certificate:
To qualify either as a Micro, Small or Medium Enterprise, your business needs to have an investment amount and annual turnover that is below the minimum threshold for each enterprise.
- Micro enterprises – To qualify as a micro-enterprise for MSME registration, your business needs to have an investment amount of less than Rs. 1 crore and an annual turnover of less than Rs. 5 crores.
- Small enterprises – To successfully qualify as a small enterprise for registering your businesses as an MSME, your business needs to have an investment amount of less than Rs. 10 crores and an annual turnover of less than Rs. 50 crore.
- Medium enterprises – The largest and most vast enterprise in this list, to qualify as a medium enterprise for MSME registration, you need to ensure that you have an investment of less than Rs. 50 crore and an annual turnover of up to, or less than, Rs. 250 crore.
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 April 6, 2023
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