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.
Source url - http://entersliceindia11.emyspot.com/blog/legal-service/msme-registration-requirements-and-its-benefits.html
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