Importance of MSME Sector

Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in industrialization of rural & backward areas. Government in order to support and promote the small business has extended relaxations to MSMEs through various subsidies, schemes and incentives. Government have been regularly proposingamendments for the smooth operations of small business.

In this article, we are going to brief you some of the developments in this sector as follows:

1. MSME registration process is most simplestby filling up only one page i.e., Udhyogaadhaar memorandum to get the unique UdyogAadhaar Number (UAN) without any documents in support and also no fees is charged. Certificate of Registration will be issued within 24 hours
2. In the Union Budget 2018, corporate tax rate for the small enterprises was lowered from 30% to 25%
3. MSME which have obtained Quality Management Systems ISO 9001 and/or Environment Management Systems ISO 14001 and /or Food Safety Systems certifications are allowed to claim the reimbursement of 75% of the certification expenses up to max limit of Rs.75,000
4. Government of India has launched Credit Guarantee Fund Scheme for MSME under which banks shall provide Collateral free loan
5. 50% subsidy for SSI registration can be availed by MSME by making an application to the Ministry.

Nowadays, multiple digital marketing strategies are also implemented by the organization in order to achieve maximum return on investment.  MSME are also implementing the strategies which big organizations uses in order to increase their visibility in the market.

The central bank has also raised the 90 days window in terms of NPA to 180 days. This has extended the classification of loans as Non-Performing assets or bad loans for the small business.

Recently the Cabinet has approved to change the criteriafor classifying MSMEs. It proposes to define MSME Registration on the basis of annual sales turnover rather than on investment basis. Now there is no distinction between manufacturing and service unit.

The proposed thresholds are:

• 1.Turnover upto 5 crores- MICRO ENTERPRISE
• 2. Turnover upto 75 crores- SMALL ENTERPRISE
• 3. Turnover upto 250 crores- MEDIUM ENTERPRISE

Source url – https://new-delhi.storeboard.com/blogs/legal/importance-of-msme-sector/909231

Easy Steps for MSME Registration

MSME stands for Micro, Small and Medium Enterprises. MSME registration is required for each and every micro, small and medium enterprises to get benefits of various incentives provided under the Micro, Small and Medium Enterprises Development Act (MSMED Act).

In this blog, we will briefly discuss about MSME registration. Here we will cover:

1. What is MSME registration?
2. Who can apply for MSME registration?
3. Is it mandatory to obtain MSME registration?
4. Benefits of MSME registration
5. MSME registration Process
6. Documents required for MSME registration

Let’s start the journey!

Who can apply for MSME registration?

Any type of business entity can apply for MSME registration. List of the business entities who are entitled to apply for MSME registration is given below:

• Proprietorships
• Partnership firm
• One person company
• Limited liability partnership
• Private Limited Company
• Producer Company
• Any association of Persons

Is it mandatory to obtain MSME registration?

MSME registration is not mandatory until yet but it is advisable to obtain MSME registration because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

Benefits of MSME registration

There are numerous benefits of MSME registration and some are discussed below:

• Easy to get a bank loan – Once you obtain the MSME registration, then you can easily get a bank
• Subsidy on Patent registration – Through MSME registration, a business entity and enterpriser can avail 50% subsidy on patent registration.
• Industrial promotion subsidy – Enterprise having MSME registration is eligible for Industrial promotion subsidy.
• Concession in electricity bills – Those who have MSME registration are entitled to get concessional benefit in respect of electricity bills.
• Protection against delay payments – By obtaining the MSME registration, any enterprise can get protection against delay payments.
• Government Tenders – A MSME registered enterprise can be easily selected for a Government tender.

MSME registration Process

MSME registration can be done through online as well as through offline. The process of MSME registration is given below:

1) Visit the website – To obtain MSME registration, first of all, visit the website as prescribed by the government

2) Filling up Registration Form- After successful login, you have to select the register option and then need to fill up MSME registration form along with various documents like:

1. Aadhar card number
2. Validation of Aadhar
3. Gender ID of the entrepreneur
4. Name of the enterprise
5. Type of your organization

• f)PAN

1. Location of your plant
2. Residential address
3. Your previous registration details, if any
4. Bank details

3) Submission of Form – After fill up the registration form you need to submit same.

4) Issuance of MSME Registration – Upon successful submission of the Registration Form and after proper verification of the Registration Form, the concerned authority will issue MSME registration certificate.

Documents required for MSME registration

List of the documents required for MSME Registration is listed below:

• PAN of the enterprise
• Bank details
• Aadhar card
• Proof of ownership of premises
• Copy of licenses and Bills of Machinery purchased

1. 6)Copies of Sale/Purchase bills

• Partnership deed

Conclusion

MSME acts as an engine which helps in the growth of the economy and promoting equitable developments. Enterslice provides world’s best service in a matter of MSME registration. If you are planning to apply for MSME registration, then kindly contact the expert team of Enterslice to get best and affordable service.

 

Source url – https://enterslice1.weebly.com/blog/easy-steps-for-msme-registration

What is SSI Registration Process?

If you have a business or an enterprise, you must have heard, recommended by someone regarding the MSME/SSI registration. MSME is known as the Micro, Small, and Medium Enterprises.

There MSMEs are regulated by the MSMED Act. MSME/SSI registration process is not mandatory. However, it is always advisable to have the certificate of MSME registration for your business so that you could avail the benefits provided under the various schemes launched by the government for MSMEs.

Further, in this article, we will discuss the MSME/SSI registration process, documents required for the MSME registration etc.

Process of online SSI registration

There are certain steps that need to be followed for the SSI registration, however, it can be canceled at any time when your business turnover crosses the limit prescribed by the government.

Let’s take a look at the steps to follow for the MSME registration-

• In accordance with the rules and regulations under the MSMED Act, you need to fill an online application with the respective department.
• Applicants have to provide the details of the business they want to operate and submit all the necessary documents.
• Applicant’s Aadhar number
• Few basic details of an applicant such as name, gender, PAN number, email ID and mobile number
• Few basic details regarding the enterprise, such as PAN, the location of setting up a plant, the address of the business place, date of starting the business, number of employees involved in the business.
• Bank Account Number and IFSC code
• The Basic activity of the business/enterprise
• NIC 2 digit code
• Details of the investment made in the plant & machinery/ Equipment

It takes around 2-3 working days for the complete documentation of MSME registration.

Let’s take a look at the documents for the MSME registration.

List of Documents required for the MSME/SSI Registration

If you are looking to register your own MSME in India, then you must keep in mind to collect all these documents at the time filing the application of MSME registration-

• PAN card of the proprietor/ all the partners/ all the directors
• Aadhar card of the proprietor/ all the partners/ all the directors
• You need to submit the ownership proof of the business premises such as allotment letter/ possession letter/ lease agreement/ property tax receipt.
• In the case of the rented premise, you have to submit the rent agreement and no objection certificate (NOC) from the landlord and attach the utility bills to it.
• Copy of sale bill of each end product
• Copy of purchase bill of each raw material purchased
• Copy of partnership deed, if you have a partnership firm
• You have to draft a Memorandum of Association, certificate of Incorporation, board’s resolution (In case of a private limited company)
• Copy of Industrial License, obtained under the Industrial Development and Regulation Act, 1951
• You need to submit an affidavit on Rs. 10 non-judicial stamp paper that has to be duly attested by the Notary Public affixed. It must mention the status of the machinery installed, power requirement etc.
• Purchase bill of the machinery installed
• Bills of all the plants and machinery purchased and their installation
• Bank Account Statement

This is the MSME registration procedure in India and list of documents required for the registration of MSMEs.

For any query do contact Enterslice.

Source url – https://enterslice.site123.me/blog/what-is-ssi-registration-process

Online MSME Registration Process

The online MSME registration process has now become quite simple and time-efficient. If your business is small or medium or even micro, then you must obtain MSME registration because the government of India has introduced many schemes under MSMED Act to encourage and promote micro, small and medium enterprises.

MSME stands for Micro, Small and Medium Enterprises, and such enterprises are the backbone of Indian economy. If we believe the reports, the MSME sector shares 45% of India’s Total Industrial Employment, 50% of India’s Total Exports, and 95% of all industrial units in the country.

As per information from MSME’s official website, more than 6000 types of products are manufactured in such industries. The growth of the Indian economy is directly proportional to the growth of MSME industries. As the industries grow, the country’s economy develops as a whole. MSME industries are also known as Small Scale Industries (SSI).

Categorization of MSME

Micro Small and Medium Enterprises are categorized into two parts:

• Manufacturing Enterprises; and
• Service Enterprises.

Further, they are defined as investment in Plant and Machinery/ Equipment as follows:

Categories	Investment made in Micro Enterprises	Investment made in Small	Investment made in Medium
Plant and Machinery	Less than Rs. 25 Lakhs	Less than Rs. 5 Crores	Less than Rs. 10 Crores
Equipment	Less than Rs. 10 Lakhs	Less than Rs. 2 Crores	Less than Rs. 5 Crores

 

Online MSME registration process

You can register your MSME both online and offline. But if you are seeking online MSME registration process, then follow the following steps:

Step1: The foremost step to MSME registration includes filing an online application on MSME’s website and filling up the details.

Step2: If you want to register for more than one industry, then you can do individual registration by filing a single form available on the website.

Step3: Then submit all the documents required for the registration such as Aadhaar number, industry name, bank account details, address, and other general information.

Step4: Submit the above documents along with self-certified certificates.

Step5: Once you have filled all the details accurately and uploaded it on the website, you will receive the registration number very soon.

There’s no fee required for this registration process.

Latest updates on MSME registration

Recently, the government of India has launched support and outreach for greater synergy to the MSME sector. Under this initiative, the enterprises can avail the following benefits:

1. Approved loan up to Rs. 1 crore only in 59 minutes through an online portal.
2. All CPSUs are mandatorily required to procure through the GeM portal.
3. 3% procurement is reserved for women out of 25% procurement mandated from MSMEs.
4. 100 Technology centers will be established at the cost of Rs. 6000 crores.
5. All PSUs are required to obtain 25% from MSMEs, instead of the 20% of their total purchases.

Apart from these, there are several new features updated for MSME sectors. For more info, click here.

Conclusion

MSME registration offers many benefits to the small-scale industries. All you need to do is to obtain an MSME registration for your enterprise. Business falling under the MSME categories can easily get loans and that too at lower rates, various tax subsidies, excise duty exemption schemes, eligible for IPS subsidy, reimbursement of ISO certification, etc.

Hence, if you’re looking to register your business under MSMED act, then contact India’s no. 1 consultant Enterslice. Our team of experts will help you obtain the MSME registration in a very few time and at a fair price.

Source url – http://www.enterslice.gomilio.com/en/blog/online-msme-registration-process-34

Eligibility & Requirements of Online MSME Registration

MSME stands for micro small and medium enterprise. These enterprises play a crucial role in developing country’s economy. MSME basically supplies the raw material, goods and finished products. It includes the investment made in plant & machinery and equipment.

Classification On The Basis Of Investment

1. PLANT AND MACHINERY

Micro Enterprise-When the investment in plant and machinery is less than twenty five lakhs.

Small Enterprise-when the investment in plant and machinery is between twenty five lakhs and five crores.

Medium Enterprise-when the investment in plant and machinery is between five crores and ten crores.

2. EQUIPMENT

Micro– When the investment is less than ten lakhs.

Small– When the investment is between ten lakhs and two crores

Medium-when the investment is between two crores and five crores

Schemes under MSME Registration

Government has started lots of schemes and benefits for the promotion of MSME. Even banks have started to help and providing loans to get these enterprises going. But before availing these benefits you need to register yourself.

For registration of MSME, you need an aadhar number and fill the MSME registration form available on the official website of udyog Aadhar Registration at www.udyogaadhar.gov.in and can be verified by aadhar OTP.

These small scale industries and enterprises plays an important role in overall growth of the nation, as they generate the employment and improves the economical growth.

Significance of MSME Registration

MSME registration brings accountability and credibility to the enterprise, when registered with the MSME authorized government body. There are ample of perks and benefits, but for availing these advantages, the MSME registration is mandatory.

Advantages of MSME Registration

The MSME registration is not mandatory, but if you register your enterprise under MSME registration, then you do have the opportunity of gaining some benefits over the non registered small scale industries.

• Lower rate of interest
• Tax Subsidy
• Excise Duty Exemption Scheme
• Subsidy Tariffs
• Capital Investment Subsidy and other support
• Collateral free loans from the banks
• Reservation policies for the manufacturing sector and production sector
• Special consideration for the International trade fairs
• Eligible for IPS subsidy
• Reimbursement of ISO Certification

Eligibility Criterion for MSME Registration

Your organization falls under MSME if it follows the one or multiple criterion listed below.

 

• If there is no partner, that is you are the only owner of your business or sole proprietor
• If you are a part of Hindu undivided family
• If you work as or have a partnership firm with another party in association
• If you have single person company
• If you have limited liability partnership
• If you own a private limited company
• If you have a production company, which produces materials
• If you work with an association with other person
• If there is any undertaking

Documents Required for MSME Registration

One has to submit the following documents for MSME registration in India.

• PAN card of the proprietor/all partners/directors.
• Aadhar card of the proprietor/ all partners/ all directors.
• Ownership proof the premises such as allotment letter, possession letter, lease agreement, property tax receipt.
• If you have taken a space on lease, then you have to present the rent agreement, NOC along with the utility bill.
• You need to submit the sale bill for each end product.
• You have to show the copy of the bill of every raw material purchased.
• If you have a partnership firm, then you have to submit the copy of partnership deed
• Copy of memorandum and articles of association and certificate of incorporation in case of private limited company along with the 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 and power required etc.
• You have to show the bills of every machinery installed.
• Bank Account Statement.

Source url – https://entersliceindia.it.gg/Eligibility-and-Requirements-of-Online-MSME-Registration.htm

MSME Registration and Its Importance

Registering a start up company as a micro, small or medium scale enterprise under MSMED Act in India automatically conveys a plethora of benefits on the enterprise. The MSME registration is a totally optional process for all relevant enterprises but companies prefer the certification because of the following reasons:-

• Under Credit Guarantee Fund Scheme, micro and small enterprises get bank loan without collaterals;
• Registered businesses are entitled to charge compound interest on delayed payments from buyers
• Banks charge comparatively lower rate of interest from MSME registered companies.

There are many more such advantages that registered companies enjoy. Hence it is sensible to register your business with the Ministry of MSME at the onset itself.

What are the Criteria for MSME registration?

The Ministry clearly specifies the outline defining segregation of enterprises into micro, small and medium scale business entities:-

• Micro industries are ones where the investment in the business is not more than Rs. 25 lakh in the manufacturing sector and not exceeding Rs. 10 lakh for industries in service sector.
• Small industries are the ones whose investment does not go beyond Rs. 5 crore in the manufacturing segment and Rs. 2 crore for companies involved in services.
• Medium scale enterprises are one whose investment does not go beyond Rs. 10 crore for manufacturing companies and Rs. 5 crore for ones involved in service sector.

What is MSME Registration Process?

MSME registration can be done online as well as offline. The offline process involves filing the relevant form and submitting it along with self-attested documents like Personal Aadhar number, Industry name, and bank account details, address proof of the registered office, certificate of incorporation, Partnership Deed, bill copies of machines purchased, sales and purchase bills.

MSME Registration online

Online MSME registration can be done from the government website. The registration form requires the applicants to fill in details like Aadhar Number, name of entrepreneur, social category, gender, physically handicapped, name of enterprise, type of organisation, PAN, address of the factory/plant, registered office address, mobile number, email id, date of business commencement, bank account number, IFSC code, main business activity of enterprise, NIC 2 Digit code, additional details of the business, number of employees, investment amount in plant and machinery in lakh. The scanned copies of Aadhar card is required to be uploaded here.

Udyog Aadhar Registration

Udyog Aadhar is a unique 12-digit number that is an official government identification number. The Udyog Aadhar is granted by the Ministry of Micro, Small and Medium scale enterprises. Once the MSME registration is done, the ministry provides the relevant certification and the Udyog Aadhar number. While this number can be applied for online as well as offline – with the Udyog Aadhar number the unit gets special government subsidies, 15% subsidy for upgradation of technology and 50% subsidy for getting patent registration; financial support to participate in industry specific exhibitions in foreign countries etc.

The Udyog Aadhar Memorandum, also called UAM is a document meant for self-certification of certain mandatory particulars of the MSME like its bank details, owner’s Aadhar details etc.

Is SSI Registration the same thing?

Yes, it is one and the same thing. SSI registration is for small scale business units and their ancillary units. The SSI unit needs to be registered with the Director of Industries at the state government level. With such registration, the enterprise gets special provisions like priority sector lending, excise exemption scheme, also exemption under direct tax laws, and interest on delayed payment etc.

SSI Registration online

The SSI registration online can be from the website of the Ministry of MSME. In fact, the application form for SSI registration and MSME registration is exactly the same including the details that need to be furnished. The Provisional Registration certificate is granted in the pre-operation stage. The provisional certificate is applicable for a period of five years. Once operations commences, the unit needs to apply for the Permanent registration. However if the business does not start its production in the initial five years, it can re-apply for the provisional certificate.

Source url – https://entersliceindia.it.gg/MSME-Registration-and-Its-Importance.htm

 

MSME an added advantage to your Enterprise

Introduction:

Once a company gets itself registered as MSME (Micro small medium enterprises), it becomes eligible for various benefits available under various schemes of the government. Although the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME. The MSME is regulated by the MSMED Act, 2006. The various schemes, exemptions, grants issued time to time is provided to encourage and enhance more participation of such enterprises, in return, even the enterprises are contributing in the growth of the economy by way of exports to foreign territories, exchange of technologies at international level and also has resulted in enhanced employment opportunities.

BRIEF:   Official Site for MSME registration: https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.   Industries sectors eligible to be registered: Enterprises engaged in manufacturing of Products and Services.   Types of MSME: 1.      Micro Enterprises 2.      Small Enterprises 3.      Medium Enterprises   The basis of division into MSME: It is categorized on the basis of investment in Asset. However, it is proposed to be categories on the basis of turnover.

 

Categories of MSME:

Product based:

All such manufacturers who are engaged in the process of manufacturing, production, processing or preservation of goods are required to register themselves according to the given below categories:

1. MICROENTERPRISE:

Industries having an Investment in plant and machinery of up to 25 lakh

2. SMALL ENTERPRISE:

Industries having an Investment in plant and machinery of more than 25 lakh but up to 5 crores

3. MEDIUM ENTERPRISE:

Industries having an Investment in plant and machinery of more than 5 crores but up to 10 crores

Service-based:

All such organization which is engaged in rendering services and are related to the service sector are required to register themselves according to the given below categories:

1. MICROENTERPRISE- Organizations having an investment in equipment up to 10 lakh
2. SMALL ENTERPRISE- Organizations having an investment in equipment more than 10 lakh but up to 2 crores
3. MEDIUM ENTERPRISE- Organizations having an investment in equipment more than 2 crores but up to 5 crores

Documents required for registration:

1. Established Business address proof:

In the case of the self-owned premises following can be submitted:

1. Allotment letter,
2. Possession letter,
3. Lease deed or property tax receipt.
4. In the case when the municipal license is available in the business name or in the name of the proprietor, partner or director of the business, no other possession document is required to be submitted.
5. In case the premise is rented following is required:
6. A no objection certificate from the landlord is required.
7. Rent receipt
8. Any utility bill or document evidencing the landlord’s ownership is to be submitted
9. Copies of sale bill in which it is going to deal in and sell or supply.
10. Copies of Purchase bill of such raw materials purchased.
11. Licenses from regulatory bodies as obtained.
12. All bills and receipts related to purchase and installation of plant and machinery if stipulated.

Registration Steps:

Step 1: Application on MSME registration is required to be done online.

Step 2: The verification of same is to be done using the e-Aadhar OTP.

Step 3: Provisional registration is granted for the initial years of 5 years, in cases where the entity has not yet started its business.

Step 4: On commencement of operations, the company can apply for the permanent license, until and unless the previous one has been canceled.

Benefit:

The benefit of such provisional registration is that the basis these companies can approach the bank and apply for loans and certain NOCS can be obtained basis this provisional registration number obtained.

Just to know:

To facilitate the ease of business it is PROPOSED to divide the industries on the basis of annual sales turnover rather than on an investment basis and hence there will be no distinction between manufacturing and service unit.

Proposed limits are:

Sr. No.	Types	Turnover
1.	Micro Enterprise	Turnover upto 5 crores
2.	Small Enterprise	Turnover upto 75 crores
3.	Medium Enterprise	Turnover upto 250 crores

In the recent era, the MSME sector took a boom and kept growing consistently and in response to that to promote it government regularly announces various schemes. Hence it is highly recommended to get your enterprise registered under MSME.

Source url https://uberant.com/article/443904-msme-an-added-advantage-to-your-enterprise

How to apply for MSME Registration in India

The MSME which stands for micro small and medium-sized enterprises and also known as SSI which stands for small scale industry. These are common and profiting businesses that receive many benefits from the government as the government itself promotes it. Once you have decided to have your own business of this sort, you will require to get the MSME Registration or SSI Registration.

The MSME enterprise that is into manufacturing sector has its own categories depending on the monetary investment that is made to start them up. Those categories are as followed:-

• The micro-enterprises, these are the one in which the investment is less than the Rs 25 lakhs in their business’s machinery and plant.
• The small enterprises are the ones in which the entities that are investing would be in an amount between Rs 25 lakhs Rs 5 crores on their plant and the machinery.
• And finally the medium sized enterprises, the entities invest the monetary amount between Rs 5 crore and Rs 10 crore.

The other category of MSME enterprises would be in the service sector. And this category is based on the amount invested in the equipment.

• In this sector again, we start with micro enterprise that has entities investing less than Rs 10 lakhs.
• The small-sized enterprises with an investment by entities being more than the amount of Rs 10 lakhs, however, less than the amount of Rs 2 crores.
• The final category of medium-sized enterprises, here the entities invest an amount between Rs 2 crores and 5 crores.

Instructions on How to fill an online form for MSME Registration?

• Fill 12 digit Aadhaar card number that was issued by the government of India to the applicant.
• Fill in the name of the applicant has been mentioned on the Aadhaar card.
• Then select your social category from the given options in the online form.
• Then select your gender from the 3 options provided.
• Mention whether you are physically handicapped.
• Fill in the name of your enterprise or the business for which you need the MSME Registration certificate for.
• Next, selection of the kind of organization your MSME or SSI is. This will be printed on your MSME registration certificate or your SSI Registration
• Now fill in the 10 digit PAN card number if in case you are involved with limited liability partnership or something like a co-operative society or a private limited / public limited. This step of PAN card number is optional in the case of proprietary firm where solo business is handled as a self-help or a unit like Hindu undivided family.
• Fill the regional location of your MSME or SSI plant.
• The address of your main office which should the address other than the plant location.
• Your email address on which you can be contacted.

We provide many services such as expert consultation, follow up, preparation of your document required, delivery of certificate and much more. You can completely rely on our online legal services related to the government. We are the preferred choice of our customers so don’t hesitate in leaving a mail to us, our representative will shortly contact you. If you are facing any trouble in MSME Registration then don’t waste your time simply reach us to get the complete guide and support of our experts. We are constantly available to help you in any circumstances.

Online MSME Registration Process

Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play a crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in industrialization of rural & backward areas.

ORGANIZATIONS CONSIDERED AS ‘MSME’

MSME are classified in two classes:

1. Manufacturing enterprises: Organization engaged in the manufacture, production, processing or preservation of goods with the following limits as categorized below:

• MICRO ENTERPRISE- Investment in plant and machinery upto max 25 lakh
• SMALL ENTERPRISE- Investment in plant and machinery more than 25 lakh but upto 5 crores
• MEDIUM ENTERPRISE- Investment in plant and machinery more than 5 crores but upto 10 crores

2. Service enterprises: Organization which is engaged in providing or rendering services with the following limits as categorized below:

• MICRO ENTERPRISE- Investment in equipment upto 10 lakh
• SMALL ENTERPRISE- Investment in equipment more than 10 lakh but upto 2 crores
• MEDIUM ENTERPRISE- Investment in equipment more than 2 crores but upto 5 crores

In order to promote the ease of doing business and align the definition of MSME with GST regime, recently the Government has proposed to change the criteria for classifying MSMEs.

It proposes to define SSI Registration on the basis of annual sales turnover rather than on investment basis which results in no distinction between manufacturing and service unit.

The proposed thresholds are:

• Turnover upto 5 crores- MICRO ENTERPRISE
• Turnover upto 75 crores- SMALL ENTERPRISE
• Turnover upto 250 crores- MEDIUM ENTERPRISE

Before proceeding with registration, one should have a clear roadmap of setting up of MSME

ROADMAP FOR SETTING UP ‘MSME’

1. Setting up the Project

For establishing MSME, the first and foremost thing is to select the project for providing the product/ service which could generate the sufficient surplus for the economy

2. Product selection

While finalising the product ensure its ease of availability, its accessibility to the market.

3. Technology Selection

Installation of modern machinery and equipments is most important for the efficient operation of MSME

4. Arrangement of finance

No MSME unit can operate without monetary support. Financial assistance in India for MSME units is available from a variety of institutions.

5. Filing of the single registration form at the website.
6. NSIC adopts certain procedures for hire purchase of machinery
7. Construction of Building

Designing of the factory building is an essential part

8. Getting the Utility Connections

Power and water supply for carrying the operation is necessary

9. Clearances

Enterprises has to obtain various clearances and permissions depending upon the nature of his unit and products manufactured.

10. Quality Certifications

To gain the strong position in this competitive environment Quality Certification has also become extremely important. Government has launched Schemes to provide Financial assistance for availing the certification.

REGISTERATION REQUIREMENT UNDER MSME

Though the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME under MSMED Act, 2006 because the government has provided numerous benefits to the MSME since it is contributing in the growth of economy in terms of output, exports and employment opportunities.

Also, in recent years the MSME sector has been consistently grooming in comparison to the overall industrial sector and in order to promote it government regularly announces various schemes for its growth. Registration process for MSME is simplest by filling up only one page i.e., Udhyog aadhaar memorandum through online mode.

The only information is required is Aadhaar number and name of owner.

**Note:

• The registration at Udhyog Aadhaar is on self declaration basis. No documentation is required.
• Certificate of registartion will be issued within 24 hours
• More than one Udyog Aadhaar can be filed with the same Aadhaar number

Source url – https://entersliceindia.wixsite.com/mysite/blog/online-msme-registration-process

What is MSME registration?

Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, was introduced to encourage Micro, Small and Medium enterprises and facilitate their development in the competitive markets. The government through various schemes, subsidies and incentives tries to promote such enterprises. Through MSME registration is not mandatory but to avail those benefits MSME Registration is preferred.

What are the criteria for Micro, Small and Medium enterprises?

As per the official notification in February 2018, the classification of the enterprises is now made through‘annual turnover’, unlike earlier which was according to the ‘investment in plant and machinery/ equipments’.

1. A Micro Enterprise is a unit which has the annual turnover not exceeding Rs. 5.00 crore;
2. A Small Enterprisea unit which has the annual turnover more than Rs. 5.00 crore but not exceeding Rs. 75.00 crore;
3. A Medium Enterprisea unit which has the annual turnover more than Rs. 75.00 crore but not exceeding Rs. 250.00 crore.

The above amendment was brought to name the classification growth oriented and align the structure to the new tax regime revolving around GST.

Before Notification

Sr. No.	Type of Enterprise	Manufacturing Enterprises (Investment in Plant & Machinery)	Service Industry (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

What are the benefits of MSME registration?

• Collateral free loans up to a limit of 50 lakh.
• Various government ministries hold development programs at utmost stage increasing the overall productivity of MSMEs.
• Support is provided to new micro and small enterprises. Guidelines on how to start a business assessing loans from banks are also provided.
• Government also provides financial assistance for reimbursement of part of one-time registration fee and annual recurring fee for first three years for using bar coding.
• The rates of interest on loan offered to MSMEs are comparatively lower.
• Businesses registered under MSME are able to obtain government license and certification quicker than the regular process.
• MSME registered businesses enjoymultiple income taxes and capital gains tax subsidies from the government.
• Enterprises that have MSME Registration Certificate are also eligible to claim for reimbursements of ISO Certification expenses.

These are few benefits and there are plenty more available to MSME registered enterprises which makes the registration desirable for the eligible.

Who is eligible to apply for MSME Registration?

Following can apply for MSME registration:

1. Proprietary
2. Hindu Undivided Family (HUF)
3. Partnership
4. Co-Operative
5. Private Limited Company
6. Public Limited Company
7. Self Help Group
8. Others

What details are required to be noted in the MSME Registration Form?

1. Now adhaar card is now essential for the applicant or the authorized representatives.
2. Name of the owner
3. Social Category
4. Gender
5. Physically Handicapped status
6. Legal name of enterprise.
7. Type of Organization
8. PAN Number for Co-Operative, Private Limited, Public Limited and Limited Liability Partnership, OPC (optional for remaining types)
9. Locations of Plant
10. Official Registered Address
11. Date of Commencement
12. Previous Registration Details, if any
13. Complete Bank Details
14. Primary activities
15. National Industry Classification Code/s(NIC Code
16. Number of persons employed
17. Investment in Plant & Machinery/ Equipment
18. The details of the DIC (District Industry Center) nearest to such business.

What are the documents required for the MSME registration?

The entity making the application for MSME/SSI registration has to submit following documents:

• Proof of registered address
  1. Allotment letter, possession letter, lease deed or property tax receipt,or a municipal license in the business name or in the name of the proprietor, partner or director of the business, If the premise is self-owned.
  2. Rent receipts or utility bills and a no objection certificate from the landlord is required, If the premise is rented.
• Copies of Sale Bill and Purchase Bill:
  1. Entity is required to submit copy of sale bill related to each end product that it will supply.
  2. For each raw material that it will purchase, a purchase bill has to be submitted.
• Partnership Deed and Registration Certificate for a partnership firm
• Incorporation Certificate, Copy of MoA and AoA, in case of Private Limited Company along with Board’s Resolution authorizing the director to sign the application
• Copy of Licenses
• Purchase bill of machinery installed
• Bank Account Statement
• An affidavit of Rs. 10/-non judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement etc.

Source url http://enterslice.over-blog.com/2018/05/what-is-msme-registration.html