MSME Registration requirements and its benefits


MSME registration is one of the critical processes required for every micro, small, and medium businesses and it plays a crucial role in the Indian economy. Moreover, businesses can avail several unexpected benefits from MSME registration, and we will discuss the same in the blog later.
We have covered a few significant aspects of MSME and MSME registration in this blog. Below, you can find the list of the topics covered:
·         What are MSME and MSME registration?
·         Categorization of MSME
·         Key benefits of MSME registration
·         MSME registration requirements

Categorization of MSME

MSME is categorized into two different classes in terms of investment. They are as follows:
·         Investment in plant and machinery, and
·         Investment in equipment.
The limit for investment in plant and machinery or equipment for various enterprises is as follows:
Investment in Plant & Machinery
Micro Enterprises: The investment made isn’t more than Rs. 25 lakhs.
Small Enterprises: The investment is between Rs. 25 lakhs to Rs. 5 crores.
Medium Enterprises: More than five crores but doesn’t go beyond Rs. 20 crores.
Investment in Equipment
Micro Enterprises: Investment doesn’t exceed Rs. 10 lakhs.
Small Enterprises: Investment is more than Rs. 10 lakhs but doesn’t exceed Rs. 2 crores.
Medium Enterprise: The required investment is more than Rs. 2 cores but doesn’t exceed Rs. 5 crores.

Key benefits of MSME registration

There are a plethora of advantages that companies or businesses can avail through MSME registration. A few of them are described below:
Ø  With MSME registration, it’s quite simple to take loans from the government as well as from the banks and that too at a very low interest.
Ø  Company registered with MSME can avail benefits of the tax subsidy.
Ø  There are various Excise Duty Exemption schemes for MSME registered enterprises.
Ø  Benefits of subsidy tariffs.
Ø  Enterprises can have benefits of capital investments subsidy and other support as well.
Ø  Banks offer collateral-free loans to the businesses/companies registered with MSME.
Ø  There are reservation policies for the manufacturing as well as production sector.
Ø  Special consideration for the international trade fairs.
Ø  Companies are eligible for IPS subsidy.
Ø  Reimbursement of ISO certification.

MSME registration requirements

Enterprises intending to register with MSME needs to fulfill certain requirements and must possess the essential documents for the same. Below you can find the following requirements for MSME registration:
ü  The applicant can be the owner of a sole proprietorship, one person company, limited liability partnership, private limited company, etc.
ü  PAN card of the proprietor (if a sole proprietorship) and PAN card all directors and members in case of the entity.
ü  Aadhaar card of all the members, directors, or proprietor.
ü  Evidence of ownership of premises such as allotment letter or possession letter or lease agreement or property tax receipt.
ü  If the applicant has rented premises, then he/she must submit the rent agreement and NOC (No-objection Certificate) from the landlord, along with the utility bills.
ü  A duplicate copy of sale bill for every end product.
ü  Copy of purchase bill of each raw material purchased.
ü  In case of Partnership firm, a copy of Partnership Deed is required.
ü  Copy of MoA and AoA and the certificate of incorporation, in case of a Private limited company, along with the Board’s resolution authorizing the directors to sign the application.
ü  Scanned copy of Industrial license obtained under Industrial Development and Regulation Act, 1951.
ü  The purchase bill of installed machinery.
ü  An affidavit of Rs. 10/-non judicial stamp duly attested by Notary public affixed providing the status of machinery installed, power requirements, etc.
ü  Bills in terms of purchasing and installation of plant and machinery.
ü  Current bank account statement.
From the above discussion, it’s clear that MSME registration is a vital process for every micro, small, and medium firms. If you have any queries regarding the MSME / SSI registration process, then you can visit our website Enterslice, where you can get a detailed info on the same.

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