MSME Registration In India
GST registered MSMEs can get 2% interest subvention from Government for incremental loans of Rs 1 crores under the MSME Credit Scheme
MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME act. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. The MSME became operational on October 02, 2006. It was established to promote, facilitate and develop the competitiveness of the micro, small and medium enterprises.
Our Company Registration package includes the following:
- DSC for one director and DIN for up to three directors
- Drafting of MoA & AoA
- Registration fees and stamp duty
- Company Incorporation Certificate
The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per msme.gov.in). When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s.
What are Micro, Small and Medium Enterprise?
MSME are classified into two categories: i. Manufacturing enterprise; and ii. Service enterprise. They are defined in term of investment in Plant and Machinery/ Equipment as below
- Promotion of fine arts
- Diffusion of political education
- Grant of charitable assistance
- Promotion of science and literature
- Creation of military orphan funds
- Maintenance or foundation of galleries or public museum
- Maintenance or foundation of reading rooms or libraries
- Promotion or diffusion or instruction of useful knowledge
- To do the registration the small and medium scale industry owner has to fill a single form which he can do online as well as offline
- If a person wants to do registration for more than one industry then also he/she can do individual registration.
- To do the registration he/she has to fill a single form which is available at the website which is listed below.
- The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details and some common information.
- In this, the person can provide self-certified certificates.
Benefits of MSME Registration
- Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
- There are various tax rebates offered to MSME.
- It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- There are many government tenders which are only open to the MSME Industries.
- They get easy access to credit.
- Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
- Business registered under MSME are given higher preference for government license and certification.
- There is a One Time Settlement Fee for non-paid amounts of MSME.
Documents To Be Submitted
- Business Address Proof
- Copies of Sale Bill and Purchase Bill
- Partnership Deed/ MoA and AoA
- Copy of Licenses and Bills of Machinery Purchased