Overview

MSMEs or micro, small and medium enterprises mainly contribute to the socio-economic development of the country. MSMEs are governed by the Ministry of Micro, Small &To get medium enterprise and profit in India, it is necessary to be registered under MSMED or Micro, Small and Medium Enterprises Development Act. Registration of MSMEs is very important, as it allows these enterprises to benefit from various schemes launched by the government.

MSME sector enterprises contribute 45% of India's total industrial employment, 50% of India's total exports and 95% of all industrial units in the country, and more than 6000 different types of products are manufactured. These industry units as per data provided on the official website of MSMEs, ie, msme.gov.in. When these industrial units grow, the nation's economy flourishes and grows. These industries are also known as Small Scale Industries or SSIs.’s.

MSME

MSME stands for Micro, Small and Medium Enterprises. According to the MSMED or Micro, Small and Medium Enterprises Development Act of 2006, enterprises are classified into two types as follows:

• Manufacturing enterprises are those enterprises engaged in the production or manufacture of goods in industry.
• Service enterprises are those enterprises engaged in or providing services.

Registeration Procedure

MSMEs can be registered by simply visiting https://msme.gov.in/online-application website of the government and filling the application form for MSME Registration. It’s An online portal provided by the government that helps in the MSME registration process. Applicants can obtain MSME Registration Certificate with lifetime validity in 2-5 working days. The MSME registration certificate is for both manufacturing and service sector enterprises. There is no limit to the name used by a person to register for new or already existing businesses.

Eligibility criteria

The gap between manufacturing and service enterprises is removed by the recent Atma Bharat Abhiyan economic package announced by India's Finance Minister Nirmala Sitharaman. The annual turnover and investment amount are the same for enterprises involved in both manufacturing and service sectors. The current and revised definitions of MSMEs are as follows:

MSME's revised definition and limitations: Criteria 2020

Certificates issueing Authority

In India, MSME registration is done online. Each state in India owns a separate department for MSMEs. The District Industries Center (DIC) in India is responsible for registration of MSMEs. The District Industries Center (DIC) department has the authority to issue certificates for MSME registration. The department also issues an MSME number along with a certificate of MSME registration in India.

If a person wants to get his MSME registration done, he has to contact the nearby District Industries Center (DIC) department.

Required documents

Following is the list of documents and information as per the application form for MSME registration in India:

• Applicant Aadhaar Card;
• Owner Name - As per Aadhaar Card;
• Social category of the applicant- Does the applicant belong to general, scheduled caste, scheduled tribe or other backward class category? / />
• Gender of the applicant;
• Physical status of the applicant- Is the applicant physically disabled
• Name of the enterprise;
• Enterprise Type - select from the list in the form;
• PAN Number
• The Official Address of the enterprise’s plant
• The Location of the enterprise’s plant
• Date of incorporation of the enterprise
• Previous registration details of the enterprise, if any;
• Bank details related to the enterprise;
• Enterprise activity - choose between "Manufacturing" or "Service."
• NIC code;
• Employment related information - Total number of employees working in the applicant's organization
• Details of investment in machinery and plant.

Registration process

The process of MSME registration is as follows:

• Fill the application form for MSME registration

  First of all, applicants have to fill the necessary details required in the registration application form for registration of MSMEs and then submit the application form for registration to the concerned department. The process of filling the application form can be started online or offline.

• Preparation of required documents

  Gather and gather all the necessary documents as stipulated in the MSME registration application form. Typically, the process of collecting all the required documents takes about 1 to 2 business days to reach the next registration stage.

• Filing of application form for MSME

  The applicant is required to upload the required documents and submit the application form to the Registrar of MSMEs. Regulatory authorities process and verify the authenticity or validity of documents submitted by the applicant. This verification and processing takes about 2 business days.

• Application approval and certificate issuance

  After being satisfied with the regulatory authority documents and other submissions made by the applicant, the applicant's company gets registered under MSME.

Eligiblity Criteria

Any person who successfuly fulfills one or several of the criteria mentioned below is eligible and eligible for MSME registration in India:

• Any person who is part of a Hindu undivided family;
• Any person who has a limited liability partnership;
• Any person who owns a partnership firm as an associate of another company;
• Any person who is the sole owner;
• Any person who owns a single person company;
• Any person who has a private limited company;
• Any person who owns a production company is actively involved in the production of materials.
• Any person who has cooperative societies.

Benefits

Benefits of MSME registration in India are as follows:

• Bank loan provided to MSMEs becomes very cheap as the interest rate is very low, which is around 1 to 1.5% once you go for registration of MSMEs in India. The interest rate on the loan is very low as compared to the interest on regular loans.
• MSMEs are given many tax subsidies registered in India.
• Registered MSMEs are allowed credit for MAT (Minimum Alternative Tax), which can be carried forward for a time period of up to 15 years instead of 10 years;
• There are several government tenders which are available only for MSME Industries.
• MSME industries get easy access to credit.
• After MSME is registered, the cost of obtaining a patent is reduced, or the cost of establishing the industry is reduced because these industries have many reimbursements and concessions available.
• Businesses registered under MSMEs are given high priority for government certification and licensing.
• There is a one time settlement fee for all non-paid amount of MSMEs.