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Posted on April 24, 2021
Register your business under MSME/ SSI Online and enjoy the benefits
MSME or Micro, Small and Medium enterprises, classified depending on the annual turnover of any business. Previously, it is known as SSI registered entities. The entities which are registered under the MSME Development Act, 2006 of the Central Government can have MSME registration certificate. The Act was introduced to develop and to promote the businesses functioning at a small or medium scale.
Almost all types of business activities were eligible for registration under MSME before, but trading and other few business activities are now specifically excluded from the eligibility category. However the MSME registration is voluntary, entities prefer to obtain MSME registration online because of its numerous benefits announced by the government.
Benefits of MSME Registration are as follows,
- Tax Benefits: By registering your business under MSME, you can get tax benefits scheme depending on your type of business such as granting immunity from certain direct taxes in the beginning years of your business.
- Easy Clearance on Payments: MSME registration helps your business to get easy clearance for any payments which are pending.
- 50% discount on trademark and Patent Fees: MSME registration offers you a reduction in the price of the trademark registration process and patent registration process. The entities which are registered under MSME may claim 50% discount on the Government fees with the submission of their MSME registration certificate.
- Credit Guarantee Scheme: Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) is a more supportive scheme for the small scale industries. It provides credit and income input from different sources to support small scale industries which are under the bad financial situation.
- Lesser Interest Rates For Bank OverDraft(OD): Banks and other money-related sources comprehend MSMEs and provide various exceptional schemes for them.
- Eligible for Mudra Loan Scheme: Business under MSME registration is eligible for the Mudra loan scheme.
Basically, there are 3 types of MSME or SSIs which are classified as below:
Micro Enterprises: Micro-enterprises are small scale entities. Business under Micro manufacturing enterprises with the investment of less than Rs. 25 lakhs in plant and machinery, and business under the microservice enterprises should be less than Rs. 10 lakhs investment
Small Enterprises: The investment in small service enterprises limits between Rs. 10 lakhs and Rs. 2 crores and in small manufacturing enterprises, the investment should be in between Rs. 25 lakhs and Rs. 5 crores in plant and machinery.
Medium Enterprises: And finally the Medium manufacturing enterprises, here the investment should be in between Rs. 5 crores and Rs. 10 crores for plant and machinery, and for medium service enterprises it should be in between Rs. 2 crores and Rs. 5 crores.
|Micro Enterprises||Investment up to Rs.25 lakhs||Investment up to Rs.10 lakhs|
|Small Enterprises||Investment above Rs.25 lakhs and up to Rs.5 crores||Investment above Rs.10 lakhs and up to Rs.2 crores|
|Medium Enterprises||Investment above Rs.5 crores and up to Rs.10 crores||Investment above Rs.2 crores and up to Rs. 5 crores|
The procedure of MSME/ SSI Registration Online
- MSME registration is not mandatory to start or run any enterprise, but it is always good to register to take reward of benefits provided by the government under the MSME.
- The registration process of MSME for the small and medium scale industry is easy and simple. It can be done both offline and online but online is better as you can register from anywhere; as all you have to do is to fill a single form.
- Visit the website https://msme.gov.in/ and reach the application form. Here you need to enter the information about your company and other details such as
- Aadhar number of the applicant
- Name of the applicant, gender, PAN number, email id and mobile number of the applicant.
- PAN number, location, and address of the company.
- Count of employees and the date in which you are planning to start your organization.
- Bank account number and IFSC code.
- The basic business activity of the enterprise.
- Investment details
- There are no fees required for this registration procedure.
- Once the application is filled, cross-check and upload it, you will get the enrollment number.
Even though it is an easy process, taking the help of a professional is always better for the MSME registration as it demands the knowledge of all the latest updates in this area.
Documents Required for MSME Registration
To register your business under MSME, you have to submit the following documents
- Business Address Proof
- Copies of Sale Bill and Purchase Bill
- Partnership Deed/ MoA and AoA
- Copy of Licenses and Bills of Machinery Purchased
Business Address Proof of the entity:
If the business premise is self-owned then you have to submit allotment letter, lease deed or property tax receipt and possession letter. If you have a municipal license in your business name or in the name of a partner or director or in the name of the proprietor of the business then no other possession document is needed to be submitted.
If the business premise is rented then you have to submit the rent receipt and a no-objection certificate from the owner of the premises. Also, any utility bill manifesting the landlord’s ownership is needed to be submitted.
Copies of Sale Bill and Purchase Bill:
The entity is needed to submit a copy of the sale bill related to each end product of the business that it will supply. Also, for each and every raw material which is purchased, a purchase bill has to be presented.
Partnership Deed/ MoA and AoA:
If the company is a partnership firm then it has to present its partnership deed. If the partnership firm is registered already then the registration certificate of the firm has to be submitted.
If it is a company then a copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be presented during the MSME registration process. Apart from that, a copy of board resolution empowering a director to sign the MSME application and a copy of the resolution passed in general meeting is also to be submitted.
Copy of Licenses and Bills of Machinery Purchased
In a few cases, the applicant has to produce a copy of the industrial license from Govt. of India. Additionally, all receipts and bills related to purchase and installation of plant and machinery for your business have to be filed in the proper manner as it may require during the registration process.