An Easy Understanding of Registration Process for MSME
Posted: Jun 23, 2020
Over the past few decades, India has become a hub of budding startups and small businesses. With the emergence of the Micro, Small and Medium Enterprises by the people has made the Indian business sector more organized and advanced. The government of India has launched the MSME Act, 2006 with the aim to promote business development. The MSME sector contributes to 45% of the total employment in industries and hence, when these small industries flourish, the economy of the country as a whole flourishes.Over the years numerous small and medium companies are emerging, and all of this is due to the MSME registration. The Registration Process for MSME involves few essential steps, along with the documents submission for application. This article elaborates on the benefits and process of Registration Process for MSME growth and development.
The company can be of two categories, which include manufacturing and servicing. The guidelines for the registration for both the forms of companies are provided in the MSME Act. The registration for them is not yet mandatory but there are numerous advantages attached to the MSME registration in terms of taxation, setting up business, loans, credit facilities, and more.
Registration process for MSME is mentioned below:
- For registration of the small and medium scale company, the owner fills a single form which can be filled either online and offline.
- For the registration of more than one company, people can also apply for individual registration.
- They have to fill a single form which is available at the website which is listed below.
- The document requisites for the registration are Aadhar number, Industry name, Address, bank account details, etc.
- The applicants have to be self-certified certificates.
- The applicants have to pay no registration fee for MSME registration.
- After all the details are filed and uploaded, the registration number is provided.
The MSME registration is very valuable and profitable for the companies. The small companies are able to get numerous benefits like cheaper bank interest rates; they have tax benefits, easy access to credits, and much more. There are several legal firms in India, which offer the MSME registration services for the companies at easy prices. They offer very genuine and professional services with customization features.
Documents Required for MSME Registration
The companies that are applying for the MSME registration, they have to provide the following documents:
- A copy of Business Address Proof
- Copies of Sale Bill and Purchase Bill
- A copy of Partnership Deed including MoA and AoA
- A copy of all the Licenses and Bills of the Machinery Purchased
Benefits of MSME Registration
There are numerous benefits attached with MSME registration, due to which more and more small businesses are getting involved in this. The advantages are stated below:
- The companies which have MSME registration, they have the facility of availing cheap bank loans due to very low interest rate around ~ 1 to 1.5%. It is very low in comparison to other regular loans.
- The companies are able to avail various tax rebates.
- They enjoy credit for minimum alternate tax (MAT) which can be carried forward for up to 15 years instead of 10 years as stated before.
- They can avail government tenders which are only offered to the MSME Industries.
- They get access to credit easily.
- After the registration, the cost of getting a patent done, setting up the industry, etc is reduced as they are provided many rebates and concessions.
- Businesses under MSME are given preference for government license and certification.
- There is a facility of One Time Settlement Fee for non-paid amounts of MSME, for helping the business owners.
Kavita is working as a consultant at a legal services in India. She is also an experienced and passionate writer who has been written many Blog and websites' content about Company registration and Trademark registration in India.