Micro, small, and medium-sized business registration is known as MSME registration. The MSME Act was introduced by the Indian government to assist MSME through various programmes, incentives, and subsidies. the Indian government’s Ministry of Micro, Small and Medium Enterprises.With MSME registration, banks offer loans with cheaper interest rates. The growth of the nation’s economy is significantly influenced by MSME.
Benefits of Registration for MSME/SSI
The following are some advantages of MSME registration:
- lower-cost infrastructure: Charges for MSME/SSI registered companies are significantly reduced.
- Quicker state and federal government approval processes: Businesses with MSME/SSI registration are given priority.
- Getting access to bids: One benefit of the several government tenders available to MSME/SSI to support small business in India is this.
- Micro and small businesses might benefit from MSME market development help: This is another significant benefit from the government’s pledge to purchase goods from these MSMEs.
- lower-cost bank loans: Companies that are MSME/SSI registered receive loans at cheaper interest rates.
- Readily available credit: This is an additional benefit that offers loans to SSI and MSME without collateral. The Mudra Loan Scheme, which PM Modi offers or introduced, is quite helpful.
- Concession in the registration of trademarks.
- Concession in the registration of patents.
What Types of Businesses Are Included in the MSME Programme?
AMOUNT INVESTED IN ASSETS FOR THE MANUFACTURING SECTOR
- Micro Enterprises: Businesses that invest fewer than Rs 25 lakhs in assets.
- Small Enterprises: Businesses that invest between Rs 25 lakh and Rs 5 crore in assets.
- Medium Enterprises: Businesses buying assets for between Rs 5 crore and Rs 10 crore.
FOR AMOUNT INVESTED IN EQUIPMENT FOR THE SERVICE SECTOR
- Micro Enterprises: Businesses making investments of less than Rs. 10 lakh
- Small Enterprises: Businesses investing more than Rs. 10 lakh but not more than Rs. 2 crore
- Medium Enterprises: Businesses investing up to Rs 2 crore but not more than Rs 5 crore
Registration Requirements and Documents
A few documents, as well as personal information about the individual, are needed for MSME registration. The Aadhar Card is required for MSME registration.
The following papers must be submitted in order to register.
- Number from applicant’s Aadhar
- Number of the bank account and IFSC code.
- The enterprise’s main line of business
- 2 digit NIC code Investment in machines and/or equipment
- AOA and MOA
- Copies of the purchase and sales bills
- The applicant’s name, gender, PAN number, email address, and mobile number.
- PAN, location, and organization’s address.
- The amount of employees you expect to hire as well as the date when your business will launch.
Process of Registration
- Application Form Complete: This is the first step where you have to fill out the appropriate paperwork or information about the person or company.
- Persona Information: You must fill out all of your personal information in this phase, including name, address, bank account information, and pan card.
- Application to be processed by executive: The executive will examine your application at this step. If there is a problem, you will quickly be informed.
- Obtain a mail certificate: After submitting the entire form in this stage, you will receive the certificate for MSME Registration. Since the Ministry won’t be providing you with a paper copy of the certificate for MSME Registration, you will receive a virtual copy instead.
Suggested Read: Print MSME Registration Certificate