WHAT IS MSME Registration?

 

Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.

Corporate Junction supports such organisations and help entrepreneurs to grow and build an empire for themselves.

PROCESS OF REGISTRATION

 

Application Form

E-Mail Documents

Make Payment Online

Get Your Certificate

MSME Registration Benefits

 

The Government of India through its various subsidies, schemes, and incentives promote MSMEs through the MSMED Act. To avail these benefits, Registration under the MSMED Act is required. The act provides the following benefits/incentives to the MSME’s:


Protection against the delay in payment from Buyers: The MSMED Act provides protection to Micro and Small Enterprises from delayed payments. It specifically provides that where a Micro and Small Enterprise supplies any goods or renders any services to a buyer, the buyer is required to make the payment on or before the date agreed upon by them and in no case, the period can exceed 45 days from the date of acceptance.

Benefits from Banks

All banks and other financial institutions recognize MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high, and lower bank interest rates. There may also be preferential treatment in case of delay in repayment.

Tax Benefits

Depending on your business, you may enjoy an excise exemption scheme as well as exemption from certain direct taxes in the initial years of your business.

Benefits from State Governments

Most states offer those who’ve registered under the MSMED Act subsidies on power, taxes and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preference on goods produced.

Benefits from Central Government

The central government, from time to time, announces schemes to benefit MSMEs, such as the credit guarantee scheme:

Credit Guarantee Scheme (CGTMSE)

One of the major struggles that the small scale industries face is credit and input of income from various sources to support them.

The Credit Guarantee scheme, introduced to support MSME, comes with modifications to make it more beneficial for small traders:

The salient features of the scheme include

1. Enhancing the optimal eligibility loan from Rs. 25 lakh to Rs. 50 lakh.

2. Reducing the one-time guarantee for loans availed of by the MSME in North-Eastern region of India from 1.5% to 0.75%.

3. Increasing the extent of guarantee cover from 75% to 80% for:

4. Women operated Medium and small scale enterprises

5. Micro enterprises, for loans upto 5 lakhs

6. Loans obtained in North Eastern region of the country

7. Reducing the one-time guarantee fee for all loans availed in North Eastern India from 1.5% to 0.75%.

DOCUMENTS REQUIRED

 

PAN CARD


AADHAR CARD


POSTAL ADDRESS WITH PIN CODE


BANK ACCOUNT DETAILS

Yes, Aadhar Card is mandatory for MSME Registration.

Yes, you can but it’s a lengthy process it is better to link Aadhar card with an active mobile number to get MSME registration certificate instantly.

MSME Certificate is valid for life until you exceed the turnover criteria as defined in the MSMED Act.

We will provide you MSME Certificate within 2 working days.

Yes WaytoLegal is an online platform serving all over India no matters wherever you are doing business all you need is required documents and internet connection on your mobile or desktop and we are ready to get your job done.

To be eligible for SSI/MSME registration, a business must be in the manufacturing/service sector and must meet the following criteria: (a)If a manufacturing business, it has less than Rs.10 crores invested in plant and machinery (b)If a service sector business, it has less than Rs.5 crores in investment.

A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

Documents required for MSME Registration are proof of address of business, proof of identity of the promoters and constitution of the business. Additional documents may be required based on the State in which the MSME Registration is sought.

Enterprises that are registered as MSMEs get the benefit of subsidies, schemes and incentives.They also enjoy interest rate concession and their borrowing is classified under Priority Sector Lending.

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