MSME REGISTRATION

MSME registration helps the Micro, Small and Medium (MSME) industries to obtain various benefits provided by the government for their growth. In a developing country like India, MSME industries are the backbone of the economy. When these industries grow, the country’s economy grows and flourishes. These industries are also known as small-scale industries or SSIs.

The MSME registration is not yet made mandatory by the Government of India but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

AN ENTERPRISE SHALL BE CLASSIFIED AS A MICRO, SMALL OR MEDIUM ENTERPRISE ON THE BASIS OF THE FOLLOWING CRITERIA, NAMELY: --

v  (i) a micro enterprise, where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees;

v  (ii) a small enterprise, where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees; and

v  (iii) a medium enterprise, where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

DOCUMENTS REQUIRED FOR MSME REGISTRATION

The Msme Registration Documents Are As Follows:

v  Aadhaar card

v  PAN card

There are no MSME registration fees and it does not require proof of documents. PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases since the portal is integrated with Income Tax and GSTIN systems.

GST registration is not compulsory for enterprises that do not require a GST registration under the GST law. However, enterprises that mandatorily need to obtain GST registration under the GST law, must enter their GSTIN for obtaining the MSME Registration.

BENEFITS OF MSME REGISTRATION

Below listed are the MSME registration benefits:

v  Due to MSME Registration India, bank loans become cheaper as the interest rate is very low, around 1-1.5%, much lower than interest on regular loans

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

v  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

v  MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders

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

v  The MSME registration will help the MSMEs in availing the benefits of government schemes such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments, etc.

v  MSMEs are eligible for priority sector lending from banks

v  MSMEs get the benefit of a government security deposit waiver that is helpful while participating in e-tenders

v  Any number of activities, including service or manufacturing or both, may be added or specified in one MSME registration

v  Barcode registration subsidy

v  Exemption scheme from direct taxes

v  ISO certification fees reimbursement

v  Electricity bills concession

v  Special consideration in International trade fairs