What is MSME Registration?
MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.
Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act. Though the MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for lower rates of interest, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment subsidies and other support. IndiaFilings can help your business obtain MSME Registration to avail a host of benefits.
There are small and medium enterprises which fall under SSI/MSME category. MSME stands for Micro, Small and Medium enterprises. Being the backbone of an economy sector, MSME enterprises acts as an engine which helps in the growth of the economy and promoting equitable development. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To utilise all the benefits which are offered under MSME act, the enterprise should be registered as MSME with the concerned department
What entities are eligible for MSME / SSI Registration?
Micro Enterprises: These are the smallest entities, of course. Micro manufacturing enterprises have investment of less than Rs. 25 lakh in plant and machinery, while micro service enterprises have less than Rs. 10 lakh invested in equipment.
Small Enterprises: Small manufacturing enterprises may have between Rs. 25 lakh and Rs. 5 crore invested in plant and machinery, while small service enterprises may have between Rs. 10 lakh and Rs. 2 crore invested in equipment.
Medium Enterprises: Medium manufacturing enterprises may have between Rs. 5 crore and Rs. 10 crore invested in plant and machinery, while small service enterprises may have between Rs. 2 crore and Rs. 5 crore invested in equipment.
For manufacturing entities, however, land and building cannot be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account; depreciation cannot be factored in. Any business entity may apply, be it a partnership or a company. Sole proprietors may also apply.
Is MSME/Udyog Aadhar Registration is Mandatory?
The MSME/Udyog Aadhar Registration is only needed to avail of benefits, subsidies provided by government to small scale industries and service providers time to time. It is absolutely voluntary. However, as it is a fairly easy registration to get quickly (provided you have a manufacturing plant or a commercial space where you render services), many business opt for it over other registrations.
How We Help with MSME Registration / Procedure For MSME / SSI Registration
We can help your business obtain MSME Registration to avail a host of benefits. MSME registration or SSI registration can be done through us in your city.
Step 1: Complete our MSME Form: You just need to fill our simple form which would ask about your basic information. It would be required while filing your application with the department.
Step 2: Preparation of Documents: According to the details provided to us, we will draft your documentation accordingly. It takes 1-2 working days.
Step 3: Filling MSME Application: Going further, we will file your application along with the required documents to MSME registrar. Before submission, our expert will verify your documents properly.
Step 4: Your work is now completed: Once the application is approved and your MSME certificate is issued, we shall send it to you via email and courier.
What are the benefits of MSME Registration?
There are multiple benefits available to an organization registered under MSME and some of them are:
1. You can get cheaper bank loans
2. Tax Benefits
3. Tender preferences
4. Access to Mudra loan scheme