MSME Registration

MSME stands for Micro, Small and Medium Enterprises and is claimed to register the business that falls under any of these three categories. MSME businesses bring a revolutionary change in the economy for growth, expanding evenhanded development for all. Therefore, to support MSMEs, the Government of India through various subsidies, schemes, and incentives promotes MSMEs through the MSMED Act. To avail of the benefits under the MSMED Act from the Central or State Government and the Banking Sector, MSME Registration is required.

Micro, Small and Medium-sized enterprises in any manufacturing and service sector can acquire MSME Registration. Though this registration is not statutory, it is still profitable for business as it presents a range of benefits such as eligibility for lower rates of interest, excise release scheme, tax allowances, and much other support. gst suvidha center can help your business obtain MSME Registration to avail of a host of benefits.

Benefits of MSME Registration

 Due to the MSME registration, the bank loans become cheaper as the interest rate is very low at around 1 to 1.5%. Much lower than interest on regular loans.

There are various tax rebates offered to MSME.

It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years

Many government tenders are only open to MSME Industries.

 They get easy access to credit.

Once registered the cost of getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.

Business registered under MSME is given a higher preference for government license and certification.

There is a One Time Settlement Fee for non-paid amounts of MSME.

Documents Required for MSME Registration

The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.

Business Address Proof : If the premise is self-owned– Allotment letter, possession letter, lease deed or property tax receipt. If there is a municipal license in the business name or the name of the proprietor, partner or director of the business, no other possession document is required to be submitted. If the premise is rented– Rent receipt and a no-objection certificate from the landlord is required. Also, any utility bill or document evidencing the landlord’s ownership is to be submitted.

Copies of Sale Bill and Purchase Bill : Business is required to submit a copy of the sale bill related to each end product that it will supply. Also, for each raw material that it will purchase, a purchase bill has to be submitted.

Partnership Deed/ MoA and AoA : If the business is a partnership firm, it has to submit its partnership deed. If the partnership firm is registered, it has to submit the registration certificate also.

In the case of a company, a copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted. With it, a copy of the resolution passed in general meeting, and the copy of board resolution authorizing a director to sign the MSME application is also to be submitted.

Copy of Licenses and Bills of Machinery Purchased : In a few cases, the applicant has to submit a copy of an industrial license which is to be obtained by giving an application to Govt. of India. Further, all bills and receipts related to purchasing and installation of plant and machinery have to be kept safe and required to be submitted on demand.