Eligibility, Process, and Requirements for MSME registration

Eligibility, Process, and Requirements for MSME registration

If you also have confusion about whether you can register for MSME or not then you're in the right place. In this blog, we will tell you who should do MSME registration and who is eligible for MSME registration.

MSME means micro, small, and medium enterprises. This industry sector is crucial for India's economy and plays a vital role in the country's growth rate. A Ministry has been created by the Central Government, keeping in view the contribution of this sector; the name of the Ministry is the Ministry of Micro, Small, and Medium Enterprises. In lesser terms, we know it by the name of MSME. The Ministry of Micro, Small, and Medium Enterprises was set up in 2006 under the MSMED Act, 2006. The functions of this Ministry include:

• Providing business loans to small enterprises is effortless and at cheaper rates.
• Providing tax benefits.
• Helping them avail of various schemes and subsidies. 

It is not that the benefits of the schemes being run for the enterprises can be availed by the same industries which have undergone MSME registration. Whenever the Government runs a scheme, it benefits all the enterprises equally. But, it is a different matter that priority is given to providing the scheme's benefits to the MSME registered enterprises. If you want to get the help of the scheme on a priority basis, you should contact the MSME registration.

Who can register the MSME?

The industry aadhaar registration, i.e., registration for micro, small and medium enterprises, can be done by the following institutions:

·         Proprietorship Firm

·         Government and private companies

·         LLP

·         Hindu Undivided Family (HUF)

·         Partnership firm

·         One Person Company

·         Co-operative Societies

·         Association of Persons (society created by people)

In addition, all those institutions can get MSME registration done, which acts under the guidelines of the Government. The primary documents required for MSMEs are Aadhaar cards.

Category of MSMEs

As per the new definition made under the MSMED Act, 2006, an industry with an annual turnover of up to Rs 5 crore is called a micro-enterprise. Whereas an enterprise with an annual turnover of 5 crores to 75 crores is called a small enterprise, an industry with a yearly turnover of 75 crores to 250 crores is called a medium enterprise.

Documents required for MSME registration

The important thing about MSME registration is that registration can be done online and offline. Registration is free, i.e., not a single penny has to be paid for registration. The required documents for MSME registration should be as follows:

·         Business Address Certificate (Business Address Proof)

·         Copies of sales bill and purchase bill (purchase and sale receipt)

·         Documents of legal incorporation (legal certificate of starting an industry)

·         Other necessary documents

Business Address Certificate (Business Address Proof)

For the address certificate of the industry, i.e., business address proof, business people have to give a certificate of the place where the business is located. It has to be told whose name the place is. The rent contract letter has to be shown if the place is for rent. If the place of business is on rent, no objection certificate of the place owner will also have to be given. No objection letter means that the landlord will write that he has no problem with running the industry in a letter.

Copies of sales bill and purchase bill (purchase and sale receipt)

 

When the industry is set up, and there is production, the product's sale occurs. Raw materials are purchased to make the product. Copies of sales and purchase bills (purchase and sale receipts) have to be given to these slips.

Documents of Legal Incorporation (Legal Certificate)

 If the enterprise runs in partnership with more than one person, then a legal certificate is required to register that industry. For the industry running in an alliance, it is necessary to submit a copy of the Memorandum of Association (MoA), an association of association (AoA), and a certificate of incorporation. Along with this, a copy of the board approving the company's registration as AN MSME is also required.

Other necessary documents 

In some cases of MSME registration, the applicant has to submit a copy of the industrial (industry) license. If this copy is not with the entrepreneur, it can be obtained from the office granting the industry license. Another important thing here is that you may also have to pay the bill to purchase machinery required in your industry.

Process of MSME Registration

The process of MSME registration is available both online and offline. To register online, you have to go to the official website of MSME and fill out the form and submit it. The following information has to be provided in the form to be filled for registration:

•         Aadhaar number of the applicant

•         Name, gender, PAN number, email ID, and mobile number of the applicant

•         Industry name, address, and PAN number

•         The number of employees working in the industry, the name and date of the work since

•         Bank account number and IFSC code

•         Major functions of the industry

•         Two-digit NIC code

•         Details of expenditure/investment incurred in the purchase of machinery/equipment

After filling out the form and attaching the relevant papers, it must be submitted. After submitting, you will get an application number. After a few days of verification, you will get the MSME certificate. You will have to go to the MSME website and download it online.

Benefits of MSME Registration

Talking about the benefits of MSME registration, there are many benefits from it. MSME registration has the following benefits:

•         Gets priority in the benefits of government schemes

•         Get a business loan at a low-interest rate

•         It is easy to get government grants

Many such facilities start getting after MSME registration. It can also be seen in such a way that if there is no profit from MSME registration, then there is no loss.