What is MSME and MSME Registration Procedure?

MSME Registration

MSME registration plays a vital role in the Indian economy as it provides support to the industries through the supply of raw materials, goods, and finished products.

MSME Classification

In India, MSME is classified into two broad categories that are in terms of investment made in plant & machinery and equipment. The details of the same are as follows:

Investments made in plant & machinery

  • Micro Enterprise: An enterprise which invests less than Rs. 25 lakhs in plant and machinery.
  • Small Enterprise: An enterprise which invests between Rs. 25 lakhs to Rs. 5 crores.
  • Medium Enterprise: An enterprise which invests between Rs. 5 crores to Rs. 10 crores in plants and machinery.

Investments made in Equipment

  • Micro Enterprise: An enterprise investing less than Rs. 10 lakhs.
  • Small Enterprise: An enterprise investing more than Rs. 10 lakhs but less than Rs. 2 crores.
  • Medium Enterprise: An enterprise investing more than Rs. 2 crores but less than Rs. 5 crores.

What is MSME Registration?

MSME Registration is an act of registering a business under the MSMED Act which is Micro, Small and Medium Enterprises Development Act.

With MSME registration, it's easy to receive loans from the government as well as from the banks and that too at a very concessional rate so that micro, small, and medium businesses can root their first brick. One can obtain the MSME registration by filing an application for the same on the official website of Udyog Aadhar Registration at http://www.udyogaadhaar.gov.in/.

Documents required for MSME registration

  • PAN card of the proprietor, directors, and partners;
  • Aadhaar card of the proprietor, directors, and partners;
  • Proof of ownership of premises such as allotment letter, possession letter, lease agreement, property tax receipt;
  • If the office is on rented premises, then rent agreement along with, NOC from the landlord is required;
  • Utility bills;
  • Copy of sale bill for every end product;
  • Copy of purchase bill of each raw material purchased;
  • Scanned copy of Partnership deed in case of partnership firm;
  • Copy of Memorandum of Association and Article of Association;
  • Certificate of Incorporation;
  • Copy of Industrial License as obtained under Industrial Development and Regulation Act, 1951;
  • An affidavit on Rs. 10/-non judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement and more;
  • Purchase bill of installed machinery;
  • Bills regarding purchasing and installation of plant and machinery;
  • Current bank account statement.

Procedure for MSME Registration

MSME Registration method is completely an online process and for the same, you need to file an application form for MSME registration form with the help of professional and procure the approval from the department. The MSME registration isn’t obligatory for the companies though it is always advised to obtain. The process has been described below:

  • As per the rules and regulations, MSME registration needs filing of an application with the concerned government department.
  • In application, the applicant company has got to offer the details of the business they require to run with the required details and documents.
  • Aadhaar Number of the applicant is must.
  • Details of the applicant like name, gender, PAN number, email ID and mobile number.
  • Details of Enterprise like type of the company, PAN of company, location of fitting a plant, address of the organization, date of the commencement of the business, range of staff.
  • Bank Account range and IFS Code.
  • Primary business activity of the enterprise.
  • NIC 2 Digit Code.
  • Investment in Plant & Machinery / instrumentality.

For the completion of all the documentation for SSI Registration/MSME registration method takes around 2-3 operating days. All the required formalities should be completed to avoid any future problem and to finish the method in a hassle-free manner.

For any further queries relating MSME and MSME registration procedure, you can contact Enterslice and avail best consulting and legal services ever.

Source url - http://enterslice.aircus.com/what-is-msme-and-msme-registration-procedure