MSME is the short form for Micro, Small and Medium Enterprises. It acts as the economy’s backbone for a developing country like India. They play a big role in contributing to India’s Total Industrial Employment to 45%, India’s Total Exports to 50% and the country’s Industrial units to 95%. These industries can manufacture almost 6000 different types of products. The success of the industries leads to the success of the economy. These industries are otherwise known as the SSI or Small Scale Industries.
Starting an MSME industry in India is very simple and easy. One just needs little money and talent to start the business. Thorough planning is required before starting and must stick to that particular plan for the long term success. Once after starting the business, the first thing to do is the registration of the business. After the work of registration is over, go ahead with the registration of MSME to enjoy various benefits like protecting one from the delayed payments and more.
MSME Registration popularly known as the Udyog aadhar registration can be obtained by the business of any type like the Proprietorships, LLP, Private Limited Company, Single Person Company, Co-operative society, Producer Company, or anyone who works with the small business. It is a must to register the company after starting up.
Criteria to perform MSME registration online
The MSME was established to facilitate, promote and development of the Micro, Small and Medium Enterprise. According to MSMED act 2006, a business should follow certain criteria to get Udyog or Aadhaar for MSME registration.
In case, the entities are involved in the manufacturing or production of goods:
- Micro-Enterprise – Any organization in which the investment of plant and machinery does not exceed above INR twenty-five lakhs.
- Small Enterprise – The organization where the investment is not more than INR five crore but should be more than INR twenty-five lakhs.
- Medium Enterprise – The organization in which the investment exceeds not more than INR ten crore but should be above INR five crore.
In case, the organization that is engaged in rendering or providing of services is
- Micro-Enterprise – In micro enterprise model, the investment should not be more than INR ten lakhs.
- Small Enterprise – It should not exceed more than INR two crore but should be above INR ten lakhs.
- Medium enterprise – it should not be more than INR five crore.
- The owner of a small and medium scale industry has to register by filling a single form. MSME registration online is available and also offline registration.
- If the registration has to be done on more than one industry, then he will have to register it separately for each industry.
- The registration of the single form is available online at the website.
- There are few documents that are required for the registration process and they are Industry Name, Personal Aadhar Number, Bank Account details, Address and some common information.
- Self-certified certificates can also be provided.
- This process includes no registration fee.
- Once the details have been registered and uploaded, you will be provided with the registration number.
Documents for MSME Registration
The organization has to submit the following documents for registration for MSME are as follows
- Proof for Business address
- The copies of purchase bill and sales bill
- Partnership MoA/ Deed and AoA
- License copies and the bills of purchased machinery.
Benefits of MSME Registration
- With the help of MSME registration, one gets easy access to bank loans and also at a lower interest rate which rounds up to 1 to 1.5%. They are very low when compared to regular loan’s interest.
- Many tax rebates are offered to MSME.
- The credit for MAT – Minimum Alternate Tax is allowed to carry for 15 years as in the regular case, it is only 10 years.
- MSME industries have been opened through many government tenders and only the industries are benefited with it.
- The credits are easily accessible.
- The cost of setting up the industry or the patent cost gets reduced after the registration because they are provided with many concessions and rebates.
- The preference is given higher for government certification and license.
- The non-paid MSME has an option of one-time settlement fee.