MSME Registration Online
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What is MSME Registration ?
MSME Registration has a vital role to play for the businesses that are small and medium across India. Various surveys show that country’s true economic growth is calculated not just based on its large-scale businesses and foreign investments but also on its industries that are the small and medium level that includes several cottage industries running in India. When looking at the developing country like India whose economy is based on agriculture and small-scale industries, applying for MSME registration or SSI Registration is quite important, which could serve as the backbone of this economy.
In a country like India, each state consists of its own tradition and culture which the local people follow and become famous in that kind of industry. There is no doubt that India is a country who has a huge stock of natural resources with varying climatic conditions, therefore promotion and working in such type of industries on a such a huge scale is quite common among the traders.
So Ultimately MSME Registration is a certification which is issued by a respective state government department to avail to benefits under the MSME Act. However, from the year 2015 government brought the changes to the MSME or SSI Registration and it has been changed into the Udyog Aadhar Registration.
MSME registration and its advantages
The MSME (Micro, Small & Medium Enterprises) registration process has been conceptualized to provide maximum benefits to all types of enterprises. Any enterprise becomes qualified to reap the benefits offered under the MSMED Act after registration.
Some of the benefits from Central Government include easy sanction of bank loans (Priority sector lending), excise exemption scheme, lower rates of interest, an exemption under Direct Tax Laws and interest as per Delayed Payments Act.
State Governments also have to comply with their own package of facilities and incentives for MSMEs. Benefits provided by the State Government for MSMEs include the development of specialized industrial estates, power tariff subsidies, tax subsidies, capital investment subsidies etc. The Centre and the State mark their incentives and aid packages usually to units registered with them.
The Direct Taxes Law, Banking Laws, and the Excise Law have included the word MSME in their release notifications. Thus, the registration certificate issued is seen as an evidence of being MSME and is needed to avail the benefits allowed for MSMEs.
Why MSME Registration are Important for Small Business ?
MSME registration is quite important for the development of the transparency and responsibility of all the mentioned industries, Government of India has primarily categorized these industries that is widely known as MSME- Micro, Small and Medium Enterprises. MSME is actually an authorized body that assists in the promotion of these industries throughout the country with the help of officially legalized Act. One of the unique benefits of MSME registration is that it allows numerous incentives to industries that are under the MSMED Act. In order to subscribe under MSME, an MSME registration procedure is necessary. Besides the enterprises as mentioned above, or shop registration and even firms or public and private limited companies, LLPs are also available to apply for registration under MSME to get its benefits
Documents Required for the MSME Registration
a) Aadhar Card Copy –Aadhar is one of the most identification now for the MSME Registration Online. without aadhar card, you won’t be able to register for the MSME Registration. If you intend to go for private limited company registration or partnership etc your partner’s aadhar card is worked as the company does not have an aadhar card on its name.
b) Mobile Number linked with the aadhar card –MSME Registration is done online which requires you to link your mobile number with the aadhar card. If the number is not linked with your aadhar card then you need to have the alternative documents like other ID or pan card copy etc.
nts like pan card copy etc.
Classification under MSME Registration
An industry owner prior to applying for the MSME registration should know the requirements to list his company and must file his application in that class only in order to evade any cumbersome technicalities. Due to this, Government of India has ruled its own set of rules and regulations for the industries in order to classify them. The classification is as given below:
Micro industries – to apply for registration of these kinds of industries your investment should be below 25 lakhs for companies in the manufacturing sectors and 10 lakhs for the companies of the service sector.
Small industries – In small-scale industries the investment should not go beyond 5 crores for companies belonging to the manufacturing sectors and 2 crores for the service sector.
Medium industries – to apply for medium industries your investment should not go beyond 10 crores for companies in the manufacturing sectors and 5 crores for the service sector.
MSME Registration Process
MSME Registration process is done exclusively online, however, you need to take the professional help to fill up your application and get approval from the concerned department. MSMED Act is not mandatory for the companies but it is always recommended for them to have Government supporting their company. The consequence of this is, numerous medium and small-scale industries are moving ahead for registering their company. The whole method of registration is given below:
- The registration process demands you an application for the MSME registration, which needs to get prepared and submitted to the respective government office according to the latest rules and regulations.
additionally, one needs to file their personal traits of the type of the industry they want to run and some of the particular documents as mentioned below:
- Name of Applicant.
Location of Plant to be set up
Name of Enterprise / Business.
Type of Organization you are opting for.
Your current office Address.
- Mobile Number.
Your E- Mail ID.
Date of Commencement of Business.
Your Bank Account Number.
Bank IFS Code.
Business Activity of Enterprise.
- NIC 2 Digit Code.
- Number of employees.
- Additional details about Business.
- Investment in Plant & Machinery / Equipment.
Scan copy of Aadhaar card.
- The normal time is between 2-3 days for completing all the documentation work of the registration.
Despite the fact that the registration process is quite simple and hassle-free, certain industry owners still feel mandatory to complete the formalities for avoiding any sort of difficulties thereafter.
Where MSME Registration is registered with the government
MSME Registration is carried out online, however, each state has a separate DIC (District Industries Centre) department. These authorities match the MSME Registration Certificate with the MSME Number. If you want to take benefits of all the scheme or under the MSME then you need to contact your nearby DIC Department for the same.
Benefits under MSME Registration Online
MSME Registration gives you the right to get the advantages under the MSME Scheme provided by the government. One of the notable advantages of registration is that the Government includes your company or business in the Central and State Government schemes It will lead into better information regarding the much-arrived schemes and total transparency of the government working process. Various benchmark advantages include simple ingress to different government grants and bank loans, Eligibility to apply for different Government’s beneficial schemes and evidence in various laws like exercise, banking direct taxes and so much more. Below given are the some of the important MSME Scheme Benefits under the Registration:-
Easy Bank Loans – every business that is registered under the MSME can make use of the relating to the bank loans. Banks provide the collateral free loans where your property is not guaranteed with the Banks. Govt and SIDBI both form a separate legal entity that works to execute this scheme on the all small and medium business enterprises.
Reservation Benefits – Government also amend the industrial act where every small business which is registered under the MSME can take benefit from this scheme where you can improve your goods production and employment possibilities in the country.
license registration or easy to open a business bank account – MSME Registration Certificate serve like a legal entity proof of the business that can help you quickly open a current bank account or considered your registration while making another license like GST Registration as well.
Participating in the International Trade Fairs – every small business needs to expand their business across India or on a global level which needs exposure and support from the government. Govts gives special advantages for participating and gives special consideration in the international and national trade fair that is organised by the MSME Department.
Stamp Duty and Registration Charges Waived off – Earlier every enterprise which is expanding their business in the IT Park or SEZ they can take the advantages under the Stamp Act however now every small enterprise also can make use of these benefits.
Exemption under the Income Tax as a Direct tax – every small business which is involved in innovative work towards the improvement in society can avail the benefits of the income tax in the former years. the startup scheme also has similar benefits that are introduced by the government.
Various Subsidy on the NSIC Performance and Credit Rating – this scheme provides every small enterprise with the benefits of the subsidy on different expenses through NSIC Performance.
Industrial Promotion Subsidy – Within this scheme government gives the small enterprise s benefits relating to the industrial promotion in terms of subsidy.
Protection in the Delay – Payments from Buyers – This is one of the common problems for small businesses. Buyers delay in the payments to the small business however under this scheme all the business are well-protected and can file a case against the buyer & settlement of the conflict in the minimum time.
Get Capital Subsidy – Under this scheme, each enterprise gets the 15% capital subsidy for purchasing the plan and machinery for the same.
Reimbursement under the Bar Code Registration – Small businesses have required a lot of the mandatory registration for running their product based business so that every manufacturing units needs the barcode registration. Under this scheme, you are qualified for the subsidy under the barcode registration.
Waiving off of Security Deposit – Small Enterprise has very little amount of the working capital for running their business but in some registration, security deposit money must also be submitted and under this scheme the security deposits gets waived off for the MSME registration enterprises.
Concession in the Electricity Bills –every small enterprise that has the MSME Udyog aadhar Certificate can take the benefit of concession in the electricity bills in the particular areas.
Got the benefits in ISO Certificate – Small businesses when apply for the big projects, they need to show their credibility that requires the ISO Certification. In this scheme you get the benefit of subsidy for the ISO Certification.
Preference in the Government Tenders – MSME certified enterprise are given preference in the government tenders while the bid is going on. Therefore this becomes one of the most important advantages for w,inning the big tenders.
Got the Subsidy on the Patent Registration – There are various innovative small firms that perform innovative tasks & need a patent registration that is quite expensive. Under this scheme, you also get the 50% waiver off from the patent government.
Octroi Benefits under MSME – Small enterprise need to pay the octroi on the goods and services that are delivered by them which enhances the additional cost some time. In this system, the government provides a refund of the octroi which is taxed on the goods and services.
rate of the Interest reduction by the major banks – Under this scheme all the leading banks make certain policies relating to the bank’s loan for the MSME which is as follows–
40% of the total credits should go to micro and small businesses that are involved in manufacturing that have an endowment in plant and machinery up to Rs.10 lakh and for service enterprises that have an investment of about Rs.4 lakh.
20% of the total allowance to micro and small enterprises need to go to manufacturing enterprises that have about Rs.10 lakh- Rs.25 lakh investment in the machinery and plant and for service enterprises that consists of investments in equipment above Rs.4
To clarify, 60% of the advances should go to microenterprises.