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
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.
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.
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