Government of India has started an online registration process to register and legalize all micro, small and medium enterprises (MSME) as they contribute a lot to the economic development of our country. This article will explore the benefits of MSME registration and also the process of registration. It will cover the list of documents required at the time of registration as well. It is to be noted that the sole responsibility of registering the MSME lies with their respective owners.
What are the MSME Registration Benefits?
Several benefits are available once any business entity is registered under the MSME initiative of Government of India. The key benefits of MSME Registration have been discussed below:
- Registration allows the Medium-Sized and small enterprises to easily remain under the recognition of the Government. This also makes it easier for these organizations to get Government Tenders.
- Certifications provided by the Government of India to the registered enterprises make it easier for them to get various types of licenses, approvals from authorities, and other registrations in a much easier manner.
- In case, these organizations have to take loans from banks for investments in a business, certification from the Government allows them less rate of interest.
- Registered organizations also get various types of exemptions from taxes and also get subsidies both from the State and Central Governments of India.
- Organizations registered under the MSME Act also get statutory support under the Delayed Payments Act and this is highly advantageous for many struggling organizations.
What is the MSME registration criteria?
- State/Central Government organization
- Industry enterprise association
- Registered societies/trusts and organization related to MSME
- The organization requires registration with the basic objective of the development and promotion of MSME.
- Organizations must be associated with business activities for at least three years with a good track record.
- Organizations need to have regular audited accounts of the previous three years.
- Events for which the organization is seeking financial support must have significant international participation.
- The organizations should not have pending bills/documents/ reports for submission to the Ministry related to any previous event.
MSME registration process is described below:
Step1: The persons who wish to have an MSME registration certificate must fill up the registration form from the official website.
Step2: Then they need to make the payment to complete the MSME registration process.
Step3: Concerning executives will take some time to process the application systematically.
Step4: Finally, the applicants will receive the certificate indicating the legitimacy of the enterprise via mail.
What are the eligibility details of MSME Registered Companies?
It needs to be noted that MSME Registration for Traders only is not allowed by the Government. The organization has to be a manufacturing organization and trading must be a part of their service if they want to register.
MSME owners must have the following details before beginning the registration.
- Aadhar Number
- Name of Applicant/entrepreneur
- Office Address
- Email ID
- Bank Account Number
- IFSC Code
Business entities are also required to submit Address proof, Licenses from regulatory bodies, as well as copies of purchase and sale bill as given below.
Business Address Proof
In case of self-owned premise – You require to provide possession letter, allotment letter, lease deed, or property tax receipt. If you have a municipal license in the business name or in the proprietor’s, partner’s, or director’s name, no other possession document is required.
In case of rented premise – You have to submit a rent receipt and no objection certificate from your landlord. Utility bill or document proving landlord’s ownership requires to be submitted.
Copies of Purchase and Sale Bill
Copies of sale bill associated with each end product that business supplies need to be submitted. A purchase bill showing each raw material it purchases must be submitted.
Partnership Deed/ MoA and AoA
When the business is a partnership firm, it requires submitting its partnership deeds. If it is a registered partnership firm, it has to submit a registration certificate also.
In case of Companies (Pvt), copy of Articles of Association and Memorandum of Association and certificate of incorporation must be submitted. Along with this, the company has to submit copy of resolution passed in general meeting as well as copy of board resolution authorizing any director to sign MSME application.
Copy of Licenses and Bills of Machinery Purchased
In some cases, applicants are required to submit a copy of industrial license which can be obtained by applying to the government of India. Moreover, all bills and receipts associated with purchase and installation of machinery and plant have have to be submitted if required.
MSME Online Registration Fees
Registration under the MSME Development Initiative of Government of India requires a minimal fee of Rs. 1999 (inclusive of all charges). Payment of the amount enables the organizations to attain the certification under the MSME Development Initiative. The payment is to be done after the online form has been filled up by the MSME Owner and the payment request is initiated.
Payment has to be done on the secured payment gateway of the MSME website only. People need to ensure that they do not follow any other mode of payment without proper approval from the MSME Authorities for obtaining their certification.
What are the details of the MSME Registration Official Website?
MSME registration official website allows MSME owners to register their organization. All the details about the MSME registration process have been clearly mentioned on the website for quick registration.
Link to the MSME Official Website: https://msme.gov.in
Website to MSME Registration: Click Here
MSME development Initiative has been given special focus in India with the aim of developing the economic stability in the country and for growth and development of different small scale and cottage industries. The ways in which registered organizations under the MSME Development Initiative can get benefits have been discussed above. Medium Sized, Small and Micro Enterprises can also go through the list of required documents mentioned for the registration process. The fee for registration that is charged for MSME certification has also been stated along with registration link.