What is MSME Registration?
As per the MSMED Act, 2006 the micro, small and medium enterprises is basically dependent on the investment in the plant and machinery for those who are engaged in the manufacturing or production process of goods or investment in equipment for business enterprises engaged in providing or rendering services.
Eligibility for obtaining MSME Registration
Who can apply for MSME registration?
- Sole Proprietor
- Hindu Undivided family
- Partnership Firm
- One Person Company
- Limited Liability Partnership
- Private Limited Company
- Limited Company
- Producer Company
- Association of persons
- Co-operative Societies
- Any other undertaking other than above
Criteria for applying MSME Registration
SSI registration can be obtained by following enterprises
|Sr. No.||Type of Enterprise||Manufacturing Enterprises
(Investment in Plant and Machinery)
(Investment in equipment)
|1||Micro||Does not exceed Rs.25 Lakh||Does not exceed Rs. 10 Lakh|
|2||Small||Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore||Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore|
|3||Medium||Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore||Exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore|
Documents Required for MSME Registration
- Pan Card of the proprietor/ all the partners/all the directors
- Aadhar Card of the proprietor/all the partners/all the directors
- Proof of ownership of premises such as allotment letter/possession letter/lease agreement/property tax receipt.
- If rented premises Rent agreement and NOC from landlord along with supporting by the landlord ownership.
- Copy of sale bill of each end product
- Copy of purchase bill of each raw material purchased
- Partnership Deed
- Copy of Memorandum and Articles of association in case of Private Limited Company along with Board’s Resolution authorizing the director to sign the application
- Copy of Industrial License as obtained under Industrial Development and Regulation Act,1951
- An affidavit of Rs. 10/-non judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement etc.
- Purchase bill of machinery installed
- Bank Account Statement
Benefits of MSME Registration
- Collateral free loans from banks
- Reservation policies to manufacturing and production sector
- Can easily approval for licenses and registrations
- Special consideration for international trade fairs
- Waiving of Stamp duty and registration fees
- Exemptions under Direct Taxes
- Subsidy on NSIC performance and credit ratings
- Eligible for IPS subsidy
- Reduction in interest rates for loans taken from banks
- Waiver of security deposit to be retained with the government.
- Reimbursement of ISO certification
Guidelines for making application
- Aadhar number is mandatory for making registration under MSME.
- Name of the owner: The applicant shall fill his/her name as mentioned in the Aadhar card
- Validation: The applicant has to validate the tab after which OTP is generated after which only he will get access for filing the application form
- Social Category: We have to select the social category (General/OBC/SC/ST)
- Physically handicapped
- Name of the Enterprise: The name of the enterprise has to be provided by which the enterprise will be known to the customer and public which will have a specific legal status to conduct the business. Note that one applicant can have more than one enterprise doing business with the same Aadhar number
- Type of organization:
- Pan number: Pan Number is mandatory for Co-operative society, partnership firm, private limited company, public limited company. However it is optional for others
- Location of the Plant: Multiple plant location can be registered under one registration
- Date of commencement: The proper date on which the business has commenced may be filled appropriately
- Previous Registration Details if any
- Bank Details:
- Name of the Bank
- Account Number
- IFSC Code
- Cancelled Cheque copy
- Activity for which MSME registration is taken: Whether Manufacturing or service
- National Industry Classification Code: The applicant has to choose multiple activities which they are going to conduct as per National Industrial Classification Code -2008. A applicant registering under MSME can NIC codes for manufacturing and service
- No of employees: The total of employees who are paid salary/wages are to be mentioned
- Investment in Plant and Machinery: The cost of investment in plant and machinery is to be mentioned excluding the pollution control cost, research and development cost, industrial safety devices or any other items as may be specified
- DIC: Depends on the location of the enterprise.