MSME Registration

Engagement of Enterprises in manufacture or production or processing.

Engagement of Enterprises in providing or rendering services.

MSME Registration - An Overview

MSME Registration stands for Micro Small and Medium Enterprises. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, to promote the small businesses. MSMEs in the manufacturing and service enterprises can obtain the registration under the Act. Every Micro, Small or Medium must enrol itself for issuance of Udyog Aadhar, this enrollment is valid for lifetime and can be obtained by those units or enterprises which have already started operations and not for the enterprise which is planned to be started.

Benefits of - MSME Registration

MSME Registration helps Enterprises to avail the benefits of:

Easy access to credit
Access to mudra loan scheme
Bank loan at subsidised rate
Excise exemption scheme
Tender preferences
Rebate and considerations under the Indian tax laws
Capital investment subsidies
Power tariff subsidies

Documents Required for MSME Registration

Address proof of Person

Residing Proof of Business

Photograph

Address Proof of Business

Frequently Asked Questions

1. How do you get MSME Registration?

Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under MSME Act. It will save you from a lot of inconveniences later on. After assigning you the Provisional MSME Certificate and you can begin with your production and even apply for a Permanent Certificate which will add more advantages for you. Always apply for provisional registration at an initial stage of the business.

2. Is SSI/MSME Registration voluntary or mandatory?

As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs usually get this done to utilise the advantages offered under it. The registration process is quite easy and simple. You can easily avail it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations.

3. Why should I apply before commencing operations?

It is advisable to get a Provisional SSI Registration Certificate (PRC) before starting your operation in your enterprise. The PRC will work smoothly for you and will help you out with particular NOCs and clearances from regulatory bodies.

4. What documents are required for the application?

If your business or enterprise is listed under Schedule –III of Industrial Licensing Exemption Notification, then you can easily apply for PRC without an industrial license. Other units must first acquire an industrial license. All the clearances should be obtained by enterprise whether it be statutory or administrative. For example, a drug license under the drug control order, if required. The PRC is issued based on the application form. No field enquiry is made.

5. For how long is an MSME Provisional Registration Certificate (PRC) valid?

The validation of a PRC is for 5 years and if the unit is still not under operational then you may still re-apply for it. As soon as you start with your operations, you can easily apply for the Permanent License.

6. How does SSI/MSME help me get a loan from a bank?

MSMEs are recognised by all the institutions and banks. Special schemes are drafted to recognise them as well. Banks prefer MSMEs instead of normal enterprises to lend loans. The possibility of getting a sanctioned loan is much higher in a case of MSME. Bank loan interest rates will also be lower. There may also be preferential treatment in case of delay in repayment.

7. What benefits are given to MSME by state and central government?

Many state government prefers enterprises which are registered under MSMED Act. Subsidy such as on power, taxes, and much more is offered by state governments. In most of the states, sales tax exemption is provided purchase preferences is given on goods produced. The enterprise may also relish excise exemption scheme and exemption from certain direct taxes in the initial years of your business.