How to apply for MSME registration
Posted: Nov 18, 2018
Introduction to MSME registration
- MSME registration includes the micro, small and medium enterprises and others that are in relation to these three categories. MSME plays an essential role in supporting economic growth.
- The Government keeps on launching lots of schemes, subsidies, and proposals under the MSME Act to keep the MSMED afloat in the market and do well.
- To take advantage of these benefits, one needs to undergo the MSME registration. If you have a certification of MSME registration, you will be able to avail the benefits such as lower rates of interest, excise exemption scheme, capital investment subsidies, power tariff subsidies, and many other perks.
Who can file the application of MSME registration?
- If the investment made in the Plant and machinery is below 10 crores, then your business can undergo
- If the investment made by the service enterprise in plant and machinery is below 5 crores, then you can approach the government for MSME registration.
How do we categorize the MSMEs?
MSME will fall under the medium enterprise if the investment made in the plant and machinery sector is between Rs. 5 crores and Rs. 10 crores. While in the service sector the investment is between Rs. 2 crores and Rs. 5 crores.
When investment made by the enterprise in the plant and machinery sector is between Rs 25 lakhs and Rs 5 crores, while in service sector when the investment made by the enterprise is between Rs 10 lakhs and Rs. 2 crores.
For microenterprise, the investment in manufacturing in the plant and machinery sector must be less than Rs. 25 lakhs. And for the service sector, the investment must be less then Rs. 10 lakhs in plant and machinery.
Guidelines for the MSME registration
- There is an online form available for the MSME registration; one just needs to start filling that form to get started with the MSME registration. If you do not wish to apply for online application, then you can opt an offline method as well.
- It might be possible that you are running enterprises that deal in different industries then you can go for separate MSME registrations for every industry your business is involved in.
- There is only a single form that needs to be filled, however, you may require some professional to understand the nuances and jargons.
- During the MSME registration, you are required to have certain information handy such as AAdhar number, Industry name, Address, bank account details, and some other general information.
- You can present the self-attested copies and there are no fees charged for the registration process.
- You will be acknowledged with the registration number on filling all the details and submitting the required documents.
Documents required for the MSME registration?
- Copy of Aadhar card of the applicant
- Name of enterprise/business
- Type of organization you are going to run
- Copy of PAN card
- Address proof of registered office address
- Mobile no and email address
- NIC 2 digit code
- Number of employees
- Investment in Plant and machinery/ equipment
- Certification of Incorporation of your organization
- A Cancelled cheque of current account in relation to your business
- The Main business activity of the organization
Few benefits of MSME registration
- If you have a MSME registration certificate, Bank provides a loan at cheaper rates than usual.
- MSME itself provides several tax exemptions that are not available for other businesses
- When you are registered with MSME, you can acquire the tenders that are exclusively available for MSME industries.
- There are several other benefits that can be availed by MSME enterprises.
If you are looking to get your MSME registration, Swarit Advisors is a one-stop solution for all.
Swarit Advisors provide expert advisory to entrepreneurs on all kinds of registrations, taxation, Ipo Advisory, financial advisory to start their business.