Detail Explanation about MSME Registration Process & Who Need to Register?
MSME registration stands for the micro small and medium enterprises registration. MSMED Act has been launched by the government of India to support the MSME through various schemes, subsidies, and incentives. With MSME Registration, banks also provide the loans at a lower rate of interests, as these MSME play an important role in the country’s economic growth. You may know the MSME registration process by visiting the official website of Udyog Aadhaar Registration.
Why MSME Registration is Important for Small-Scale Industries?
- MSME registration is essential for the companies, as it brings clarity and credibility in the functioning of the organization.
- If you are planning to start MSME anywhere in the country, then the MSME department authorized by the government of India will help you in the promotion of your enterprise.
- To avail the benefits such as incentives, subsidies and bank loans, MSME registration is mandatory.
What is the MSME Registration Process in India?
- There is an online process for MSME registration. Taking the help of a professional is always recommended for the MSME registration as it requires the knowledge of all the latest updates in this field.
- Although MSME registration is not must, before starting your enterprise, but it is always helpful to take advantage of benefits provided under the MSME
- In the application form, you need to mention the few details regarding your company and fill the following details:-
- Aadhar number of the applicant
- Name, gender, PAN number, email id and mobile number of the applicant.
- PAN, location, and address of the organization.
- A number of employees and the date, you are planning to start your business.
- Bank account number and IFSC code.
- The basic business activity of the enterprise.
- NIC 2 digit code.
- Investment in plant and machinery/equipment.
Who needs to go for MSME Registration?
Before applying for MSME registration in India, you need to take a look at the Notification released on 7th February 2018 by the government of India.
One has to adhere to the following MSME registration conditions:-
- Micro Enterprise- if the annual turnover of the enterprise does not exceed Rs 5crores
- Small Enterprise- If the annual turnover of the enterprise is between Rs 5crores to Rs 75crores
- Medium enterprise-If the annual turnover of the enterprise is between Rs 75crores to Rs 250crores
Note: above is the proposed classification
What is the Eligibility Criterion for MSME Registration?
For MSME registration your enterprise must fulfill the point(s) mentioned below.
- There has to be only one proprietor of the company that is you are the sole owner of the business.
- Be a part of Hindu Undivided family or belong to it.
- Your enterprise is a one person company.
- You work as or have a partnership firm with another party in an association.
- You have a limited liability partnership
- You run a private limited company
- You produce material from your production company
- You are associated with other people regarding work
- There is a co-operative society under your name or any other undertaking
What are the few Benefits of MSME Registration?
- Accessibility of bank loans
Banks easily provide the loans for MSME, that too collateral-free loans do not have to pledge property with banks.
- The opening of Bank Account
Once you have gotten your MSME registration certificate, it will serve as a legal entity proof of the business; which will help you in the opening of a bank account.
MSME departments hold international/national trade fairs that will provide opportunities to grow nationally and internationally.
If your company is registered under MSME, then you are likely to get the benefit of octroi refund imposed on goods and services.
- Compensation under barcode registration
If you run a manufacturing unit, then barcode registration is required. Under which you can avail the benefit of the subsidy.
Enterslice is a leading company dealing with MSME registration.