MSME Registration

What entities are eligible for MSME Registration & Document for MSME?

The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector in the Indian economy and is the backbone of the country. Obtaining the MSME registration certificate is not mandatory and is at the sole discretion of the enterprises. Eligibility for MSME registration for enterprises depending upon their scale of business which are defined as per their classification. Therefore MSME’s are classified into two categories:

Manufacturing Enterprises and Service Enterprises.

  1. Manufacturing sector represents enterprises engaged in manufacturing and production of products i.e. goods.

The eligibility criteria as defined by the MSMED Act for obtaining MSME Registration Certificate is as per investment in plant and machinery used in manufacturing the product:

  • Micro Enterprises: Investment on plant and machinery or equipment does not exceed INR 25 Lakh
  • Small Enterprises:  Investment on plant and machinery or equipment is less than INR 5 Crore, but more than 25 Lakh rupees. Micro Enterprises: Investment on plant and machinery or equipment does not exceed INR 25 Lakh
  • Medium Enterprises: Investment on plant and machinery or equipment is less than INR 10 Crore but more than INR 5 Crore.

Read Other Blog: WHAT IS MSME REGISTRATION FEES & PROCESS?

2. Services: The service sector represents enterprises engaged in providing services.

The eligibility criteria as defined by the MSMED Act for obtaining MSME registration certificate is as per investment in equipment used in providing services:

  • Micro Enterprises: Investment on equipment is less than INR 10 Lakh
  • Small Enterprises:  Investment on equipment is less than INR 2 Crore but more than INR 10 Lakh.
  • Medium Enterprises:  Investment on equipment is less than 5 Crore, but more than 2 Crore.

Now Register Your Company in Dubai

3. Who can apply for MSME Registration Online?

  • Sole Proprietorship: It’s the simplest form of business where the owner and the business are considered as the same. The registration available for sole proprietorships are GST registration and MSME registration online. No separate tax return is required to be filed for sole proprietorships as no separate PAN card is required for the proprietorship’s.
  • Partnership:  Partnership’s require two or more people who agree to enter into a lawful business which they start together by registering the partnership deed wherein the roles, duties, liabilities, procedures, profit and loss ratio are predefined.
  • Company: Company Incorporation is the most popular form of business structure. Minimum two individuals are required to form a company both can be director and shareholder. Company registration is done with the Ministry of corporate affairs. It enjoys the status of a separate legal entity providing limited liability to its shareholders and is the most recommended business structure.
  • Limited Liability Partnership: We can say it’s a combination of benefits derived from partnership and company form of business. Unlike partnership registration LLP registration is mandatory. It’s a newer concept wherein all the partners have limited liability.

4. Documents required for the MSME Registration Online are as follows:

  • PAN Card of Proprietor/ Partnership/ Company/ LLP
  • Aadhar Card of Proprietor/ Partner/Director/ designated partner
  • Office Address Proof i.e. Electricity Bill/ Telephone Bill
  • Business Name and Object
  • Investment (In Lakhs)
  • No. of Employees
  • Bank Details (Account no., IFSC)
  • Email id and Mobile No.
  • Registration Document (if applicable) i.e. GST certificate/ Partnership Deed/ 10) Company Incorporation Certificate/ LLP deed
WHAT IS MSME REGISTRATION FEES & Process_

WHAT IS MSME REGISTRATION FEES & PROCESS?

NO FEES is being charged by anyone, whosoever wants to register their organisation under MSME Act, 2006. Udyog Aadhaar or MSME Registration is made free by Government of India since 2016. You can visit the Udyog Aadhaar website and directly get your MSME registration done without paying for it.

MICRO, SMALL & MEDIUM ENTERPRISES (MSME): Driver of Indian economy

Over the years MSME has been a game changer and plays an important role in driving the economic growth of India. MSME has emerged as the most dynamic & vibrant sector for Indian economy. Irrespective the line of business you are in, be it manufacturing, servicing, registration can be obtained through MSME Act.

Get  Import Export Code Online on lowest cost.

What is Micro, small & medium enterprises (MSME)?

According to Micro, Small & Medium enterprise development act, 2006 MSME’s are classified in two broad categories:

1.    Manufacturing enterprise:  Engaged in production of goods which comes under the purview of Schedule (I) of Industries act, 1951 or which requires installation of plant & machinery in the formation of final product.

2.    Service enterprise: Engaged in providing or rendering services to individuals/corporates/groups of persons which requires equipment installation for the same.

The following enterprises are categorized depending on the Investment in plant & machinery/ service enterprise.

  MANUFACTURING ENTERPRISE SERVICE ENTERPRISE
Micro Enterprise Less than 25 Lakh Less than 10 Lakh
Small Enterprise 25 Lakh – 5 Crore 10 Lakh – 2 Crore
Medium Enterprise 5 Crore – 10 Crore 2 Crore – 5 Crore

What is the MSME Registration process?

Before getting into the step by step process of MSME registration one should be aware about the documents which are required to be attached with your application.

Company Registration | Startup Business

Related Blog – All you need to know about Company Registration as a startup

DOCUMENTS REQUIRED FOR MSME REGISTRATION

Aadhaar card: Aadhaar number is now compulsory for registration of MSME under the act. Since Aadhaar number acts as a nationwide identification for every individual therefore it helps in a complete transparent process.

PAN card: For all the financial transaction related with one’s personal income or an organisation, PAN card helps it to automatically track the 

Accounting & Auditing

Business address proof:

Self-owned property- Allotment letter, Possession letter, Purchase deed, Property tax receipt.Rented property: Rent agreement, NOC from landlord, any other receipt, evidencing the landlord ownership over the property.

Sale bill/Purchase bill: Invoice related to the product which you have purchased or you want to supply further is required to be submitted.

MOA/AOA/Partnership deed: In case of partnership firm, it has to submit its partnership deed & certificate for the same. Copy of MOA/AOA/Resolution passed in AGM is also to be submitted.

License copy: Industrial license so obtained by the Government of India should be submitted while submitting application for MSME.

Bills of machinery purchased: Since the installation of machinery is helpful in identifying the category in which the MSME will fall into. Therefore, its bills & receipts must be kept safe and are required to be submitted.

FSSAI Registration | Food  Licence

STEP BY STEP MSME REGISTRATION PROCESS

1.    Fill in Aadhaar number in the appropriate field to start of your SSI Registration application form.

2.    Once your Aadhaar is verified then only you can proceed further in the form.

3.    Applicant must fill the details as mentioned in the Aadhaar card issued by UIDAI.

4.    OTP Verification: OTP will be sent to the registered mobile number with UIDAI.

5.    Category: Applicant must mention the social category to which it belongs (General, SC, ST, OBC). The proof for the same can be demanded by the authority, as and when required.

6.    Gender: Male/female/transgender whichever category you fall under.

7.    Name of Enterprise: Legal name of enterprise under which all the transactions of the business will be done, should be mentioned.

8.    Permanent Account Number (PAN): Applicant must mention the PAN details in case of co-operative, public limited, Limited liability partnership while it will be optional in any other type of organization.

9.    Official address: postal address of the organization including the state, district, Pin code, mobile no.

10.   Date of Commencement of business must be specified in the appropriate field.

11.   Bank details: IFSC code of the bank branch and the account number where an individual account exist must be mentioned.

12.   Person employed: Details of employees who are directly working under the payroll of the company must be mentioned while applying for MSME registration.

13.  Investment: While computing the total investment, the original investment (purchase value of items) is to be taken into account.

14.  Submit: The Applicant must click on the Submit button to generate OTP which will be sent to email id mentioned for registration.

15.  The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.

16.  Enter Captcha: The Applicant must enter Captcha before clicking Final Submit button.

GST Registration

Related Blog:  WHAT IS THE GST REGISTRATION PROCEDURE

Benefits associated with MSME Registration

·       Ease in getting government tenders.

·       15% import subsidy in fully automatic machinery.

·       Approvals & Registration process becomes easy.

·       Low interest on loans.

·       Tariff & tax subsidies.

·       Exemptions under direct tax.

·       Benefits of all the government schemes.

·       Financial support from the government for participating in international expos.

More Information to click here – CAONWEB

msme-Registration

Msme/SSI Registration

What is SSI/MSME Registration-

If you Keep a small business where your investment in plant and machinery does not exceed INR 10 crore (INR 5 crore service provider) you can become a small, medium or microenterprise. It is best to take MSME registration due to its benefits such as availability of debt, Government recognized entity, to avail any subsidies or tax avail that are provided by Government only to the MSME/SSI.

Company Registration online

1. How make you get MSME Registration?

Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under MSME Act. It will save you from a lot of inconveniences later on. After assigning you the Provisional MSME Certificate and you can begin with your production and even apply for a Permanent Certificate which will add more advantages for you. Always embed for provisional registration at an initial stage of the business.

2. Is SSI/MSME Registration voluntary or compulsory?

As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs ordinarily get this done to make use of the advantages offered under it. The registration process is neck & crop easy and simple. You can easily profit it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations

GST REGISTRATION ONLINE

3. Why should I apply prior to commencing operations?

It is advisable to get a Provisional SSI Registration Certificate (PRC) prior to starting your operation in your enterprise. The PRC will work smoothly for you and will help you out with particular NOCs and clearances from regulatory bodies

4. For how long is an MSME Provisional Registration Certificate (PRC) valid?

The validation of a PRC is for 5 years and if the unit is stable not under operational then you may constant re-apply for it. As soon as you start with your operations, you can easily apply for the Permanent License.

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

MSME is recognized from all the institutions and banks. Special schemes are drafted to recognize them as well. Banks prefer MSME instead of normal enterprises to lend loans. The possibility of getting a sanctioned loan is too higher in the case of MSME. Bank loan interest rates will also be short. There may also be preferential treatment in case of delay in repayment

6. What avail are given to MSME by state and central government?

Many state government prefers enterprises which are registered under The MSME Act. Subsidy such as on power, taxes, and much more is offered by state governments. In most of the states, sales tax exemption is provided purchase preferences is given on goods produced. The enterprise may also relish the excise exemption scheme and exemption from Few direct taxes in the initial years of your business

Register Here- >> MSME SSI Online Registration

MSME

Registering under MSME in India is best if you are a small and medium scale Organization

Why waste money on incorporating a company if you are eligible to register your business with MSME. MSME means micro small and medium enterprise it aims to help industrialization of rural and backward areas. It is also known by the name of Udyog Aadhaar since Aadhaar card plays an important role to get registered under MSME. MSME SSI online registration is available and all you need to do is submit the documents like id, bank proof, and place of business proof, not to forget Aadhaar is mandatory.

When u are going forMSME/SSI Online Registration you could be either service enterprise or manufacturing enterprise. For two categories that are manufacturing enterprise and service enterprise, it depends on the investment in plant and machinery. Based on the investment value in plant and machinery you could be small or medium or micro. Before you Apply for MSME/SSI Registration lets understand what are the various limits for enterprises

Read more blogs: Private Limited Company

  1. A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh, for microservices less than Rs. 10 lakh,
  2. 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, for small service between Rs. 10 lakh to Rs 2 Crore.
  3. 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, for medium service between Rs 2 crore to Rs. 5 crores.

Read more blogs: Import Export License

MSME/SSI experts at caonweb.com will get your MSME/SSI certificate once you submit your details with us.  Therefore it is best to apply for msme/ssi registration if you are small or medium scale manufacturers or a service provider. There are no difficulties at all. It is a simple process and most importantly you get the benefits of easy loan, tax subsidies etc.

msme Registration

Who needs Registration under MSME? Benefits of Registering Under MSME

MSME is for manufacturing as well as service sector. MSME Registration is not mandatory, However Registering under MSME/SSI will directly benefit enterprises due to various subsidies/Exemptions/Incentives/Schemes by the Government.

Why MSME/SSI registration

1. PRIORITY LENDING/LOW RATE OF INTEREST BY BANK

2. VARIOUS TAX EXEMPTION FOR ENTERPRISES

3. SUBSIDIES BY CENTRAL AND STATE GOVERNMENT

4. BENEFITS IN INFRA SUCH AS CHEAPER ELECTRICITY RATES

Whether you want to start a business/already a startup/already an enterprise falling under the category of MSME as defined above. Be at any stage of business, we at caonweb will help you get register under MSME at the most reasonable cost. You could also avail services such as bookkeeping and other compliance requirements which may come up in future. Our team of professionals can guide you on the benefits you can avail.

Documents Required For MSME Registration

  • Proof of business address
  • Identity proof of the promoters/proprietor/partners/directors
  • Proof of constitution of the business
  • Also MOA, AOA, Form 32, Form 18, certificate of incorporation in case of companies
  • Partnership firms- Partnership Deed
  • Additional documents may require based on.

POPULAR ARTICLES

Related: WHAT IS MSME REGISTRATION FEES & PROCESS?

Msme/Ssi Registration