MICRO SMALL AND MEDIUM ENTERPRISES
MSME Registration
Micro, small, and medium enterprises (MSMEs) are the backbone of any country. A significant amount of employment and economic growth is created by MSMEs in every industry sector.
- What is an MSME?
- What is the MSMED Act?
- Why is it important to register as an MSME?
- Benefits of MSME registration:
- Reduced taxes and customs duties
- Access to bank loans, grants and other financial aid from government agencies and banks
- Better credit ratings from credit rating agencies like CRISIL, ICRA etc.
- Easier access to international markets for products manufactured by small enterprises
- Access to preferential policies for procurement of inputs at lower costs
- Types of Small Enterprises: Micro Enterprises Small Enterprises Medium Enterprises/MNCs (Multi National Corporations)
What Is An MSME?
MSMEs or Micro, Small and Medium Enterprises are defined as enterprises with a turnover up to Rs. 100 crore and should have at least one paid employee.
MSME registration is mandatory for all businesses operating in India if they want to avail certain benefits offered by the government of India.
The Ministry of MSME (Ministry of Micro, Small & Medium Enterprises) provides a detailed list of services offered online through mygov portal under their ‘Make in India’ program. These include:
- Registration as an MSME undertaking – The first step towards availing benefits under the various schemes and programs initiated by various Ministries like Commerce & Industry, Defence Production etc., being implemented by our Government is to register your business activity as an MSME unit throughout the country with concerned State Governments / UT Administrations in addition to those agencies specified by Central Ministries/Departments which may require registration from time-to-time depending upon their specific requirements.
Inter-Ministerial Board for Classification of Industries for MSME Registration
The Inter-Ministerial Board for Classification of Industries for MSME Registration has been constituted under the National Industrial Classification Act, 1948 and its Rules 1951. The Board is headed by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, with representatives from the Ministry of Textiles, Ministry of Corporate Affairs, Department of Revenue (CBDT), Department of Agriculture & Cooperation (DAC), Central Office on MSMEs and an expert nominated by the Secretary General.
The main functions/tasks performed by this board are as follows:
- Deciding on proposed amendments to NIRS (National Industrial Classification) Manuals based on inputs received from various stakeholder agencies like DIPP etc.,
- Preparing recommendation documents for changes in national classifications;
- Compiling data pertaining to employment in different sectors;
- Providing necessary inputs regarding new industrial proposals so that they can be classified suitably under relevant categories;
- Arranging seminars/workshops/seminars at regional level or state level to make all stakeholders aware about functioning guidelines given by government agencies related to MSME sector.
Benefits Of MSME Registration
MSME Registration ensures that the government will provide assistance to small businesses. It will also help you get a loan from banks, vendor registration and government tender.
MSMED Act And Benefits Available For Retired Service Persons In India
- MSMED Act And Benefits Available For Retired Service Persons In India
- Tax Benefits Available To Retired Service Persons Under MSMED Act
- Incentives Available To Retired Service Persons Under MSMED Act
MSMED Act Definition Of Micro Enterprises And Small Enterprises And Medium Enterprises
The MSMED Act defines Micro, Small and Medium Enterprises as follows:
- Micro Enterprise: A company with investment up to Rs.25 lakhs and turnover up to Rs. 5 crores
- Small Enterprise: A company with investment between Rs. 25 lakhs and Rs. 5 crores and a turnover of less than 10 crores for three years in aggregate during the immediately preceding five years (i) from the date of its incorporation or registration; or (ii) from the date of commencement of production; or (iii) from such other date as may be prescribed by the Central Government; or (iv) from such other date as may be prescribed by State Government, whichever is earlier; or (v) any other date specified by the Central Government in consultation with State Governments
List Of Documents Required For MSME Registration In India
The following documents are required for MSME registration in India:
- PAN card of the applicant
- Address proof of the applicant (any one from List-A)
- Bank statement of the applicant (any one from List-B)
- Aadhar card and Driving License of the Applicant
- Partnership deed or Articles of Association or Memorandum & Articles, if applicable
- Certificate of incorporation or any other document that proves that the business is registered with Registrar Of Companies OR Certificate Of Commencement Of Business, if applicable
Steps To Obtain MSME Registration In India Under The MSMED Act 2006
Steps to obtain MSME registration in India under the MSMED Act 2006
- Fill up the online application form on udyog aadhaar portal.
- Upload your list of documents.
- After verification by the authorities, receive certificate of registration.
How Nandani Services Can Help You With The MSME Registration Process?
The MSME Registration process can be a little overwhelming. Thankfully, Nandani Services is an online marketplace that connects business owners with legal and financial consultants.
Nandani Services is not just a business consultant platform but also an MSME registration portal where you can find reliable companies who will help you get your MSME certificate in no time. The platform also allows you to compare packages from different service providers so that you don’t have to worry about wasting money on services that may not be required by your business type or size.
The website has been designed to make it easy for businesses to register with the authorities online without having to go through the tedious process of searching through government websites. This can save them both time and money since they won’t need someone else’s assistance when it comes down making an application form or filling out paperwork at the local office location (which could take hours).
Take advantage of the benefits of having an MSME registration.
MSME Registration is a great way to expand your business. As stated above, MSME registration allows you to operate legally and independently in the market.