India is the second-largest country in the world with immense capital and labour available. Because of which industries, businesses, manufacturing and services have given way to success and immense profit. The Indian government wanted to bring on something which would instill more enthusiasm and spirit of competition amidst the different sectors of business or industries. It also aimed to give wings to small startups and petty business. Hence the Micro, Small, Medium Enterprise Development Act was enacted by the Indian government in 2006.
Enterprises engaged in manufacturing or production or the one granting service and employment to many out there, MSME is for them. The companies or industries engaged in production or services can get their business or enterprises registered under MSME. Since its initiation, Micro Small and Medium Enterprise have given benefits and profits to such companies. This ministry requires the companies to register under it. After successfully registering, the enterprises are granted certificates from MSME which brings them a lot of credibilities. MSME is an authorized ministry of the Government.
Before probing deeper into the all registration procedure and counting the benefits, let’s first know what is MSME. The acronym MSME stands for Micro, Small and Medium Enterprises. This was framed by the Indian Government under the Micro, Small, and Medium Enterprises Development Act of 2006. This enterprise is a government authorized ministry which caters to the socio-economic development of the country. There are several companies honing to production, export, employment and services. This enterprise can get themselves registered under MSME. There are about 95% of the production company registered under MSME and 50% of the export sector and 45% of the employment region.
Registering under MSME is not made mandatory under the Act. However, it is advisable to the budding industries and enterprises to register under it. Not only for the budding companies, but MSME registration is also beneficial for already established production companies. The main purpose of initiating such a program is to boost up the competitive spirit amidst the petty as well as a large business house. It is formulated to ensure social as well as economical development of the country.
MSME is basically divided into two categories basing upon the domain to which the enterprise belongs. One is the Manufacturing Sector another is the Service Sector. These two are again subdivided into two more arenas basing upon the investment made. Lately, the diversion is made up according to the Investment made and the Turnover received. The Micro-enterprises need to have an investment of less than 1 crore rupees and a turnover of less than 5crore rupees. Secondly, Small enterprises should have an investment of less than 10crore rupees and a turnover of less than 50crore.
In this article, we will learn about the registration, benefits, certificates of MSME. But let’s first understand how to do registration as an MSME. There is an online portal available in the search portalhttps://msme.gov.in/online-application . By using this search portal or URL you can visit the registration page of MSME. It takes you straight into the official page of MSME where you can find a form which is the registration form of MSME. By filling out this form you can apply for registration. After the approval is done, your company can receive the certificate within two to three working days. The certificate thus provided, has a validity of a lifetime.
The registration process is applicable for both the manufacturing sector and the service sector enterprises. There is no contingency in the part of Title of the company or the business. This registration can be provided to both the newbie companies and the old ones which are already well established and has acclaimed a good reputation in the market.
The process of registering as an MSME is an easy and efficient procedure. There are both options for offline and online registration of MSME. Both the Manufacturing sector and the service sector companies can register for the MSME certificate. The entire stepwise procedure of registration is given below;
You can go to the online portal of MSME page or you can paste the URL given below in the search tool https://msme.gov.in/online-application
By opening up the online portal you will get the registration form of MSME. You have to fill out the registration form by filling in the detail information the hat is asked.
The registration form shall require various documents and details. You have to make sure all the documents are ready to be attached to the online application or the offline application form.
This stage might require two days. So make sure when you are opting for online registration of MSME, you keep the scanned copies of documents ready from beforehand because they are to be attached in the application form.
After gathering and uploading all the required documents, you can submit the registration form.
Once the submission of application is completed, there are various other steps like Verification takes place.
The step of thorough verification shall take place. This step might take place around two days of time to get completed.
After the verification is completed, if the ministry is contented, they grant approval to their application and the company gets registered
Once the registration is done, the MSME certificate is to be delivered at your doorstep.
The registration is done and the certificate is received. An MSME certificate contains a sundry of information. They are mentioned below;
Adhaar Card Details, PAN card details, the caste and gender of the entrepreneur.
Name of the company and its type
Proper address and contact information of the company
The amount invested while building up the company
The numbers of employees engaged.
MSME has a registration fees of Rupees 1999. The applicants can even make the payment through online systems of payments and transaction.
MSME registration requires a number of detailed documents and information which shall help in verifying the details of the company holder and the entrepreneur. To earn the MSME registration, the following documents are requires;
Adhaar Card
Property paper
Cancelled Cheque
Rent Agreement
Memorandum of Association (for companies)
Partnership deed (for partnership firms)
Articles of Association (for companies)
PAN card
The Caste Certificate
Business Address Proof for Self-own Property. It can be an Allotment letter or a Property Tax slip or Possession letter.
Business Address Proof for Rented property in the form of Rent Receipt, NOC from the property Owner.
Company Registration proof in the form of photocopy a sale bill or photocopy of a purchase Bills
License and purchase Bills for machinery in form of a photocopy of an industrial license or Bill’s of purchasing machinery and installation
MSME has given out a wide range of privileges to the small, medium and micro sector of business or startups. And this garnered the socio-economic growth of the country. Here are listed some of the leading benefits of MSME registration;
The MSME certificate holders are eligible for tax exemption and relaxation under the MSME Act of 2006.
The enterprises which hold an MSME certificate we’re capable of getting loans on minimum interest rates. The interest rates can be as low as 1% or 1.5%.
The Minimum Alternate Tax (MAT) period can be extended from the normal 10years to 15years.
The enterprises registered under MSME are preferred for government based license and certificates.
A MSME registered enterprise or business can get concession and rebate while patenting their product or industry set up.
Whenever a government tender is passed, most of them are given to a MSME registered enterprise.
When a enterprise or business is registered under MSME, it gets hassle free credit.
Many companies be it well-established or budding, gets registered under MSME, the ministry provides the entrepreneurs with a certificate which turns out to be a proof or evidence that the registration is successfully done. For each registration, a certificate is provided. If you wish to register more than one of your enterprise, you can do so by applying separately for it. The fees shall be demanded accordingly. Each individual shall be provided with an individual MSME certificate.
No, the registration for MSME is not at all mandatory under the statute, however, it brings along various benefits and provisions which turn out to be advantageous for the enterprises that register under it.
Any type of business or enterprises be it small or huge can apply for registration under MSME. The newbie startups or the well-established companies, all can go for MSME registration.
Yes the Adhaar card number is a statutory mandate for registering under MSME.
Once an MSME certificate is issued for an enterprise, it shall be valid until the enterprise is functional. Nevertheless, a provisional MSME certificate is only valid for 5 years.
When a company or business get registered under MSME they get a certificate on behalf of it. The certificate becomes an evidence that the very enterprise is registered under MSME and shall be shelled out once the application of the enterprise gets approved.
First of all Udyog Adhar is a twelve-digit number which becomes the Adhaar card number and MSME is Micro Small and Medium Enterprises. While registering for an MSME certificate, this twelve-digit Adhaar number is required.
MSME is meant for all kind of business and companies, not for a single individual. However, a single individual based company or enterprise is eligible to apply for registration under MSME. Despite the charges and procedure shall remain unaltered.
MSME works out very well for Micro Small and medium scale business or enterprises of India. It has spawned the growth of all scale business of India and thus caters to the Socio-economic growth of the country.
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