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Micro, Small & Medium Enterprise (“MSME”) Registration

HomeCompanyMicro, Small & Medium Enterprise (“MSME”) Registration
  • MSME registration
07
Nov
Micro, Small & Medium Enterprise (“MSME”) Registration

MSMEs play a very crucial role in the economy of any country. They help in providing employment opportunities at comparatively lower capital cost than large industries. Ministry of MSME designs policies and promotes/ facilitates programmes, projects and schemes and monitors their implementation with a view to assist MSMEs and to help them to scale up. In order to avail the benefits given by Ministry of MSME, an enterprise is required to obtain registration from the Ministry. MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits and access to subsidies and schemes. Following are criteria for being registered under MSME Act, 2006:

  • For Manufacturing Enterprises:
  • Micro – Enterprises whose investment is not more than Rs 25 lakh.
  • Small – Enterprises whose investment is more than Rs. 25 lakh but not more than Rs. 5 crore.
  • Medium – Enterprises whose investment is more than Rs. 5 crore but not more than Rs.10 crore

 

  • For Service Enterprises:
  • Micro – Enterprises investment upto Rs.10 lakh.
  • Small – Enterprises investment above Rs.10 lakh and upto Rs.2 crore.
  • Medium – Enterprises investment above Rs.2 crore and upto Rs.5 crore

 

For Registration under MSME Act, 2006, Ministry of MSME has introduced a concept of Udhyog Aadhar Memorandum filing with effect from 18th September, 2015.

Since the introduction of Udhyog Aadhar Memorandum, the concept of filing EM-I and EM-II has been done away with.

Now Form-I has been introduced by the ministry which facilitates filing of Udhyog Aadhar Memorandum. This form is to be filed online on the website of the ministry and no additional document is required to be uploaded at the time of such filing.  Any number of activities including manufacturing or service or both may be specified in the memorandum. Following details are required for the purpose of MSME registration.

  1. Aadhaar Number of authorized signatory
  2. PAN Number of Entrepreneur
  3. Name of Entrepreneur
  4. Social Category
  5. Gender
  6. Name of Enterprise
  7. Type of Organization
  8. Location of Plant(s)Enterprise(s)
  9. Investment in plant and Machinery /Equipment’s
  10. Official Address of Enterprise
  11. Date of commencement
  12. Previous Registration Number-if any
  13. Bank Account
  14. Major Activity i.e. whether manufacturing or service
  15. National Industry Classification Code
  16. Persons employed
  17. District Industries Centre

For verification of fresh memorandum a One-Time Password (OTP) is sent to the mobile phone number of the applicant linked to the Aadhar number of the applicant and such OTP shall be entered in the form before submitting the application.

With the introduction of Udhyog Aadhar, obtaining registration from the Ministry has become very easy and can be done instantly.

Benefits of having MSME / SSI registration certificate:

In order to support the growth of MSMEs, many schemes have been introduced by the Ministry. These schemes can be availed by registered MSMEs only. Therefore, it is imperative to obtain registration to take advantages of these schemes. Following are the benefits MSMEs can avail:

  1. Collateral free loans from banks.
  2. Reservation policies to manufacturing / production sector.
  3. Easy to get licenses, approvals and registrations.
  4. Waiver of stamp duty and registration fees.
  5. Exemption under direct tax laws.
  6. Bar Code registration subsidy.
  7. Subsidy on NSIC Performance and Credit ratings.
  8. Eligible for Industrial Promotion Subsidy.
  9. Credit Guarantee from Government of India through CGSTI.
  10. Protection against delay in payment.
  11. Reduction in rate of Interest from banks.
  12. The Ministry of Micro, Small and Medium Enterprises provides “Credit Linked CGSTI Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small Enterprises (MSEs). The scheme aims at facilitating technology upgradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy (limited to maximum Rs.15 lakhs) for purchase of Plant & Machinery.
  13. 1% exemption on interest rate on over draft (OD).
  14. MSME registration facilitates availing 15% weightage in price preference.
  15. MSME registration facilitates availing Concession on electricity bill by making application to electricity department along with MSME Registration Certificate.

 

For more information on MSME/SSI registration, contact us on E: info@knovalt.com; T: 011 410 777 55; M : 9871 555 311

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    • Udyog Aadhaar Registration Fees Reply

      This article is actually remarkable one it helps many new users that desire to read always the best stuff.

      September 23, 2020 at 8:37 pm

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