Easy Steps for MSME Registration

MSME stands for Micro, Small and Medium Enterprises. MSME registration is required for each and every micro, small and medium enterprises to get benefits of various incentives provided under the Micro, Small and Medium Enterprises Development Act (MSMED Act).

In this blog, we will briefly discuss about MSME registration. Here we will cover:

1.       What is MSME registration?

2.       Who can apply for MSME registration?

3.       Is it mandatory to obtain MSME registration?

4.       Benefits of MSME registration

5.       MSME registration Process

6.       Documents required for MSME registration

Let's start the journey!

Who can apply for MSME registration?

Any type of business entity can apply for MSME registration. List of the business entities who are entitled to apply for MSME registration is given below:

1)      Proprietorships

2)      Partnership firm

3)      One person company

4)      Limited liability partnership

5)      Private Limited Company

6)      Producer Company

7)      Any association of Persons

Is it mandatory to obtain MSME registration?

MSME registration is not mandatory until yet but it is advisable to obtain MSME registration because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.

Benefits of MSME registration

There are numerous benefits of MSME registration and some are discussed below:

1)      Easy to get a bank loan - Once you obtain the MSME registration, then you can easily get a bank loan.

2)      Subsidy on Patent registration - Through MSME registration, a business entity and enterpriser can avail 50% subsidy on patent registration.

3)      Industrial promotion subsidy - Enterprise having MSME registration is eligible for Industrial promotion subsidy.

4)      Concession in electricity bills - Those who have MSME registration are entitled to get concessional benefit in respect of electricity bills.

5)      Protection against delay payments - By obtaining the MSME registration, any enterprise can get protection against delay payments. 

6)      Government Tenders - A MSME registered enterprise can be easily selected for a Government tender.

MSME registration Process

MSME registration can be done through online as well as through offline. The process of MSME registration is given below:

1) Visit the website - To obtain MSME registration, first of all, visit the website as prescribed by the government

2) Filling up Registration Form- After successful login, you have to select the register option and then need to fill up MSME registration form along with various documents like:

a)       Aadhar card number

b)      Validation of Aadhar

c)       Gender ID of the entrepreneur

d)      Name of the enterprise

e)       Type of your organization

1)      f)PAN

f)        Location of your plant

g)       Residential address

h)      Your previous registration details, if any

i)        Bank details

3) Submission of Form - After fill up the registration form you need to submit same.

4) Issuance of MSME Registration - Upon successful submission of the Registration Form and after proper verification of the Registration Form, the concerned authority will issue MSME registration certificate.

Documents required for MSME registration

List of the documents required for MSME Registration is listed below:

1)      PAN of the enterprise

2)      Bank details

3)      Aadhar card

4)      Proof of ownership of premises

5)      Copy of licenses and Bills of Machinery purchased

1.       6)Copies of Sale/Purchase bills

6)      Partnership deed

Conclusion

MSME acts as an engine which helps in the growth of the economy and promoting equitable developments. Enterslice provides world's best service in a matter of MSME registration. If you are planning to apply for MSME registration, then kindly contact the expert team of Enterslice to get best and affordable service.

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What were the Effects of GST on MSME Business

Have you ever come across the abbreviation MSMEs while going through the newspaper (especially business columns) or watching business news on TV?  If yes its good, if not then let us inform you that MSMEs stand for micro, small and medium enterprises. MSMEs are considered to be playing a very important role as they are expected to offer higher employment by 2020.

This sector has also been contributing to the government’s initiatives; MAKE IN INDIA and SKILL INDIA.

The introduction of GST (Goods and services tax) led so many questions and confusion to rise. People had expectations, what all would be affected by it.  

Difficulties faced by the MSMEs on the introduction of GST

·         Whenever we try to do something, we are faced with the challenges that may or may not prove beneficial for everyone. So let’s take a look at what all situations were faced by the MSME, when GST came into effect.

·         During the initial times, there was a lot of confusion as everybody couldn’t grab the fundamentals of GST

·         There were even some loopholes in the infrastructure, which actually took little long to stabilize, Input tax credit was also noticed to be delayed in few cases, which ultimately affected the MSME industry.

·         Goods and services tax disrupted the supply chains, especially in the case of small traders, who were supplying to big manufacturing companies.

Effect on liquidity due to Daily Sales Outstanding (DSO)

Daily sales outstanding refers to the number of days, it takes to collect the payments once you have supplied the goods or services.

According to the reports published in the economic times, daily sales outstanding turned out to be higher, after the introduction of GST registration.

Changes in the cost of borrowing for MSMEs

Most the MSMEs had outstanding inventories, which would be taxed under the new GST regime. However, as these MSMEs lacked compliance infrastructure to have the tax invoices for those inventories.

This lead to the weak credit profile, due to which these MSMEs could not the avail the bank loans, which ultimately pushed them to approach non-banking financing options, And these non-banking financial entities charged a higher rate of interest in comparison to the banks.

Effect on the sales of MSMEs

Because of the introduction of the GST registration, there was a decline in the sales of MSMEs. GST brought more steps, which caused delays in the whole MSME Registration procedure. This also led to high costs, which was not under control.

Future Expectations

Once MSMEs become the part of GST regime, these would be a part of larger compliance climate. There would be a better level of preparedness and discipline in conducting the business.

Our government of India is also committed to providing support to these MSMEs, ultimately would take a positive turn for everybody’s benefit.

These were all the effects of GST registration on MSMEs, but in the long run it would benefit us all.

Source url - https://enterslice1.weebly.com/blog/what-were-the-effects-of-gst-on-msme-business

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Online MSME Registration Process

The online MSME registration process has now become quite simple and time-efficient. If your business is small or medium or even micro, then you must obtain MSME registration because the government of India has introduced many schemes under MSMED Act to encourage and promote micro, small and medium enterprises.

MSME stands for Micro, Small and Medium Enterprises, and such enterprises are the backbone of Indian economy. If we believe the reports, the MSME sector shares 45% of India's Total Industrial Employment, 50% of India's Total Exports, and 95% of all industrial units in the country. 

As per information from MSME's official website, more than 6000 types of products are manufactured in such industries. The growth of the Indian economy is directly proportional to the growth of MSME industries. As the industries grow, the country's economy develops as a whole. MSME industries are also known as Small Scale Industries (SSI).

Categorization of MSME

Micro Small and Medium Enterprises are categorized into two parts:

·         Manufacturing Enterprises; and

·         Service Enterprises.

Further, they are defined as investment in Plant and Machinery/ Equipment as follows:

Categories	Investment made in Micro Enterprises	Investment made in Small	Investment made in Medium
Plant and Machinery	Less than Rs. 25 Lakhs	Less than Rs. 5 Crores	Less than Rs. 10 Crores
Equipment	Less than Rs. 10 Lakhs	Less than Rs. 2 Crores	Less than Rs. 5 Crores

Online MSME registration process

You can register your MSME both online and offline. But if you are seeking online MSME registration process, then follow the following steps:

Step1: The foremost step to MSME registration includes filing an online application on MSME's website and filling up the details.

Step2: If you want to register for more than one industry, then you can do individual registration by filing a single form available on the website.

Step3: Then submit all the documents required for the registration such as Aadhaar number, industry name, bank account details, address, and other general information.

Step4: Submit the above documents along with self-certified certificates.

Step5: Once you have filled all the details accurately and uploaded it on the website, you will receive the registration number very soon.

There's no fee required for this registration process.

Latest updates on MSME registration

Recently, the government of India has launched support and outreach for greater synergy to the MSME sector. Under this initiative, the enterprises can avail the following benefits:

1.       Approved loan up to Rs. 1 crore only in 59 minutes through an online portal.

2.       All CPSUs are mandatorily required to procure through the GeM portal.

3.       3% procurement is reserved for women out of 25% procurement mandated from MSMEs.

4.       100 Technology centers will be established at the cost of Rs. 6000 crores.

5.       All PSUs are required to obtain 25% from MSMEs, instead of the 20% of their total purchases.

Apart from these, there are several new features updated for MSME sectors. For more info, click here.

Conclusion

MSME registration offers many benefits to the small-scale industries. All you need to do is to obtain an MSME registration for your enterprise. Business falling under the MSME categories can easily get loans and that too at lower rates, various tax subsidies, excise duty exemption schemes, eligible for IPS subsidy, reimbursement of ISO certification, etc.

Hence, if you're looking to register your business under MSMED act, then contact India's no. 1 consultant Enterslice. Our team of experts will help you obtain the MSME registration in a very few time and at a fair price.

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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.

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

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What is MSME and MSME Registration Procedure?

MSME registration plays a vital role in the Indian economy as it provides support to the industries through the supply of raw materials, goods, and finished products.

MSME Classification

In India, MSME is classified into two broad categories that are in terms of investment made in plant & machinery and equipment. The details of the same are as follows:

Investments made in plant & machinery

•           Micro Enterprise: An enterprise which invests less than Rs. 25 lakhs in plant and machinery.

•           Small Enterprise: An enterprise which invests between Rs. 25 lakhs to Rs. 5 crores.

•           Medium Enterprise: An enterprise which invests between Rs. 5 crores to Rs. 10 crores in plants and machinery.

Investments made in Equipment

•           Micro Enterprise: An enterprise investing less than Rs. 10 lakhs.

•           Small Enterprise: An enterprise investing more than Rs. 10 lakhs but less than Rs. 2 crores.

•           Medium Enterprise: An enterprise investing more than Rs. 2 crores but less than Rs. 5 crores.

What is MSME Registration?

MSME Registration is an act of registering a business under the MSMED Act which is Micro, Small and Medium Enterprises Development Act.

With MSME registration, it's easy to receive loans from the government as well as from the banks and that too at a very concessional rate so that micro, small, and medium businesses can root their first brick. One can obtain the MSME registration by filing an application for the same on the official website of Udyog Aadhar Registration at http://www.udyogaadhaar.gov.in/.

Documents required for MSME registration

·         PAN card of the proprietor, directors, and partners;

·         Aadhaar card of the proprietor, directors, and partners;

·         Proof of ownership of premises such as allotment letter, possession letter, lease agreement, property tax receipt;

·         If the office is on rented premises, then rent agreement along with, NOC from the landlord is required;

·         Utility bills;

·         Copy of sale bill for every end product;

·         Copy of purchase bill of each raw material purchased;

·         Scanned copy of Partnership deed in case of partnership firm;

·         Copy of Memorandum of Association and Article of Association;

·         Certificate of Incorporation;

·         Copy of Industrial License as obtained under Industrial Development and Regulation Act, 1951;

·         An affidavit on Rs. 10/-non judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement and more;

·         Purchase bill of installed machinery;

·         Bills regarding purchasing and installation of plant and machinery;

·         Current bank account statement.

Procedure for MSME Registration

MSME Registration method is completely an online process and for the same, you need to file an application form for MSME registration form with the help of professional and procure the approval from the department. The MSME registration isn’t obligatory for the companies though it is always advised to obtain. The process has been described below:

•           As per the rules and regulations, MSME registration needs filing of an application with the concerned government department.

•           In application, the applicant company has got to offer the details of the business they require to run with the required details and documents.

•           Aadhaar Number of the applicant is must.

•           Details of the applicant like name, gender, PAN number, email ID and mobile number.

•           Details of Enterprise like type of the company, PAN of company, location of fitting a plant, address of the organization, date of the commencement of the business, range of staff.

•           Bank Account range and IFS Code.

•           Primary business activity of the enterprise.

•           NIC 2 Digit Code.

•           Investment in Plant & Machinery / instrumentality.

For the completion of all the documentation for SSI Registration/MSME registration method takes around 2-3 operating days. All the required formalities should be completed to avoid any future problem and to finish the method in a hassle-free manner.

For any further queries relating MSME and MSME registration procedure, you can contact Enterslice and avail best consulting and legal services ever.

Source url - http://entersliceindia.doodlekit.com/blog/entry/4665969/what-is-msme-and-msme-registration-procedure

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