How to Register in MSME?
Written by gkkedia Dt. June 5th, 2020
How and Why Become an MSME?
MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.
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. 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.
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.
New MSME scheme:
Classification of Manufacturing and Service Enterprises
|Investment< Rs 1Cr &||Investment< Rs 10Cr &||Investment< Rs 50Cr &|
|Turnover< Rs 5Cr||Turnover< Rs 50Cr||Turnover< Rs 250Cr|
Old MSME Scheme:
|Manufacturing Enterprises||Investment< Rs 25L||Investment< Rs 5Cr||Investment< Rs 10Cr|
|Service Enterprises||Investment< Rs 10L||Investment< Rs 2Cr||Investment< Rs 5Cr|
MSME Registration Process
- 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.
- Some very basic documents are required to get registered.
- In this, the person can provide self-certified certificates.
- Once the details are filled and uploaded you would be getting the registration number.
- Our finest experts will help you through the process and provide all the assistance required to get registered as an MSME.
Benefits of MSME Registration
- Due to the MSME registration, the bank loans become cheaper as the interest rate is very low in comparison to other loans.
- There are many government tenders which are only open for 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 andcertification
- There is a One Time Settlement Fee for non-paid amounts of MSME.
- Under bank loan, 15% import subsidy on fully automatic machinery.
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business.
- Compensation of ISO certificate expenditure.
- Registered MSMEs gets tariff subsidies and tax and capital subsidies.