MSME Registration: Over the last few decades, Micro Small and Medium Enterprises
(MSME) sector has emerged as a highly exciting and active sector of the India
Economy. The Government of India's prime motive is "enterprise creation" in the
Indian Economy and wants to produce a wide range of products to meet the requirement
of the local market and the global market. MSME creates employment and
self-employment which strengthens the Indian Economy.
Under the MSMED legislation, Micro, Small, and Medium-Sized Enterprises (MSMEs) in
the manufacturing and service sectors can get MSME Registration or SSI/Small Scale
Industry Registration. Although MSME online registration is not required, it is
always recommended to small and medium businesses because it gives a number of
advantages. Benefits such as borrowing rates charged would be significantly lower,
as would tax breaks, capital investment tax breaks, and other government assistance.
We can assist your company in obtaining MSME Registration online so that you may
take advantage of a variety of perks.
Definition as per the Government of India
The Government of India has enacted the Micro,
Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the
definition of micro, small and medium enterprises is as under:
Enterprises engaged in the manufacture or
production, processing, or preservation of goods as specified below:
- A micro enterprise is an enterprise where investment in plant and machinery
does not exceed Rs. 25 lakh
- 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
- 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
In the case of the above enterprises, investment
in plant and machinery is the original cost excluding land and building and the
items specified by the Ministry of Small Scale Industries vide its notification
No.S.O.1722(E) dated October 5, 2006.
Enterprises engaged in providing or rendering
services and whose investment in equipment (original cost excluding land and
building and furniture, fittings, and other items not directly related to the
service rendered or as may be notified under the MSMED Act, 2006 are specified
- A micro enterprise is an enterprise where the investment in equipment does not
exceed Rs. 10 lakh.
- A small enterprise is an enterprise where the investment in equipment is more
than Rs.10 lakh but does not exceed Rs. 2 crore.
- A medium enterprise is an enterprise where the investment in equipment is more
than Rs. 2 crore but does not exceed Rs. 5 crore.
This initiative would aid all entrepreneurs,
including first-generation women, scheduled tribes, scheduled castes, handicapped,
ex-servicemen, marginalized populations, and others, in this endeavor by enabling
them to start businesses.
REQUIREMENTS FOR MSME/UDYAM REGISTRATION
Following documents are required for MSMI
- Aadhar Card
- PAN Number and GST Number enterprise
- Plant location and office address
- Bank Account details of the enterprise
- Turnover of the enterprise over the last 2 years
- Written Down Value of investment made in the business
- Type of Income-tax return filed in the previous year
- Date of incorporations/ commencement of business
- Nature of business activity being carried out
- No. of persons employed by the enterprise along with their gender
PROCESS OF MSMI/SSI REGISTRATION
- Documentation - Firstly, prepare/collect all the documents which are
required for the MSMI/SSI Registration; all documents are mentioned above.
- Submits Application - After collecting all documents, submit an online
application with the required documents to the MSME/Udyam office.
- Scrutiny - The Udyam officials will verify the documents will check
whether application information is correct or not.
- Grant of registration certificate - Once application will be approved
registration is done. Udyam will grant MSME registration Certificate.
Note: The process of MSMI/SSI Registration
vary from State to State.