MSME Registration- Micro Small And Medium Enterprises Registration

MSME stands for micro, small, and medium enterprises. MSME is the backbone of any economy. Around 70% of the Indian GDP comes from the SME and MSME sectors. The MSME sector has created many job opportunities and thus requires sources for funding their daily capital requirements. The government of India launched a scheme called the MSMED Act to support MSME (Micro Small And Medium Enterprises) businesses by providing them with special incentive schemes and subsidies. An enterprise can gain many benefits by registering under MSME. Here we have explained the complete procedure to get Micro Small And Medium Enterprises Registration.

Classification of MSMEs

MSME (Micro Small And Medium Enterprises) can be classified into 2 categories-

Manufacturing Unit
Service Unit

The Manufacturing enterprises and enterprises rendering services are further classified under Micro, Small, and Medium Enterprises as follows:

Micro Business: The enterprises whose investment in Plant and Machinery or Equipment does not exceed Rs.1 crore and annual turnover does not exceed Rs. 5 crores.

Medium Business: The enterprises whose investment in Plant and Machinery or Equipment does not exceed Rs.10 crore and whose annual turnover does not exceed Rs. 50 crore.

Small Business: The enterprises whose investment in Plant and Machinery or Equipment does not exceed Rs.50 crore and annual turnover exceeds Rs. 250 crores.

Benefits of MSME (Micro Small And Medium Enterprises) Registration

There is an elaborate list of benefits acquired by MSME registration:

Public Procurement Plan

The Public Procurement Policy for MSMEs has mandated that every Central Ministry/ Department/PSU shall set an annual target of 20% to be procured from the MSMEs. Out of the total annual procurement from the MSEs (Micro and Small Enterprises), 3% shall be earmarked for procurement from MSMEs owned by women, and a sub-target of 4% is earmarked for procurement from MSEs owned by SC/ST entrepreneurs.

Collateral-free loans

Micro and Small businesses can get loans without collateral for their capital requirements. The unsecured loans for the MSME (Micro, Small, and Medium Enterprises) will be covered by the government.

Priority Sector Lending

The MSMEs qualify under the Primary Sectors for getting the loans. These industries can easily get loans from Banks/ NBFCs as they are given priority by the Banks to provide loans for their cash requirements.

Technical Support

The government provides financial assistance to the MSMEs to help them implement the latest technologies for their business by giving them loans at low-interest rates and reimbursing a portion of their fees for the purchase of materials.

Access to GeM

The MSMEs get easy access to GeM which is a wide online marketplace for public procurement of goods/ services. The MSMEs get the benefit of easy registration on GeM through the MSME. Small traders can sell as well as buy products on GeM.

Protection from delayed payments

Small enterprises can file their complaints online on e-Ramadhan to get quick and just resolution on the problems related to delayed payments. The e-samadhan platform also has the facility to check the status of the complaint.

Easy availability of government tenders

The MSMEs can get government bids easily and can participate in government tenders for free and need not pay the security money for government bids which the other participants have to pay. Since the MSMEs are the Priority Sector, they can easily get tenders from the government.

Marketing Support

The government gives marketing support to the MSMEs by reimbursing a portion of fees for the registration of Barcode. The barcode is the latest and innovative technology that eases the business by facilitating unique product identification. Small businesses will benefit from the use of barcodes for their daily business requirements.

Discount on Trademark & Patent fees

The MSMEs can easily get discounts on the fees of Patent & Trademark. The government reimburses the fees for the registration of trademarks & patents for the MSMEs.

Documents Required for MSME (Micro Small And Medium Enterprises) Registration

There is a list of documents one has to submit before getting registered for MSME. The documents required are-

Aadhar Card

Proprietorship Firm- Aadhar number of the Proprietor.
Partnership Firm- Aadhar number of the managing director
Hindu Undivided Family- Aadhar number of the Karta
Company/ Limited Liability Partnership/ Cooperative society/ Trust- Aadhar number of the organization or the key person of the enterprise

PAN

The PAN number of the entrepreneur or the key person of the organization.

Eligibility Required for MSME Registration

You are eligible for MSME if you are one of the following:

Partnership Firm
Proprietorship Firm
Private Limited Company
Hindu Undivided Family
Limited Liability Partnership
Any association of persons
Co-operative societies or trust

MSME Registration Procedure

Micro, Small, and Medium Enterprises can register for MSME by visiting the government website and filling up the form. Follow the below steps to get the MSME registration:

Step 1: Visit the MSME Registration Website.

Step 2: Fill in all the details on the MSME Registration Form:

Applicant Name: The candidate has to fill in his/ her name as given on the Aadhar card.
Mobile Number: Enter the 10-digit mobile number without the country code.
E-mail ID: Enter the e-mail ID for the Acknowledgement and certificate to be sent on the provided e-mail ID.
Office Address: The candidate has to provide his/ her full office address along with the Pincode, State & District.
Social Category: Select your social category (i.e., General/ ST/ SC/ OBC).
Aadhar Number: The candidate has to give his/ her Aadhar number as issued by the UIDAI.
PAN Card: The candidate has to give his/ her PAN card.
Bank Account: The candidate has to give his/ her Bank account details.
IFSC Code: The candidate has to provide his/ her bank account’s IFSC Code.
Date of commencement of Business: The candidate has to give the date of commencement of the business.
Type of Organisation: Select the type of Organisation.
Main Business Activity of Enterprise: Select the main business activity of the enterprise.
Additional details about the business: Give the additional details of the business.
Number of Employees: Enter the number of employees in your firm.
Investment in Plant & Machinery/Equipment: Enter the total investment made in Plant, Machinery & equipment.
Submit Application: Click on “SUBMIT APPLICATION” after giving all the details.

Step 3: Make the online payment for your MSME application.

Step 4: Our executive will process your application.

Step 5: The certificate will be sent to the e-mail id.

Conclusion

The MSME registration helps enterprises avail various benefits of multiple subsidies and rebates in various taxes. Any enterprise involved in the manufacturing and service sector can get the MSME registration under the MSMED Act. Although it is not mandatory to get the MSME (Micro, Small, and Medium Enterprises) registration done for every business, the MSME registration can be very useful for small businesses. The MSME registration brings various benefits such as subsidies on various taxes, subsidies on capital, preference in getting government tenders, collateral-free loans, etc.

We provide easy MSME registration services for you so that you can enjoy the real benefits from government schemes like collateral-free bank loans, tax rebates, reimbursement of patent & trademark fees, international & domestic workshops & seminars, etc.