Features of MSME Registration
MSME refers to micro, small and medium enterprises. To promote such small sized entities Government of India introduced Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. MSME or SSI enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all.
MSME registration though not mandatory, but it is recommended for such small enterprises to have registration under MSMED Act to enjoy numerous benefits, subsidies, schemes and incentives. MSME’s in both manufacturing and service sector can obtain registration under the MSMED Act.
Busibells can help your business obtain MSME Registration to avail numerous benefits.
Categorization under MSME
- Micro Enterprises – For registration under this kind, enterprises with investment in plant & machinery should be less than Rs. 25 Lakhs, and for micro enterprises in the service sector investment in plant & machinery should be less than Rs. 10 lakhs.
- Small Enterprises – Small enterprises in the manufacturing sector with investment in plant & machinery more than Rs. 25 lakhs but not exceeding Rs. 5 crores can apply for registration under such kind, whereas small enterprises in the service sector can apply if investment in plant & machinery is more than Rs. 10 lakhs but not exceeding Rs. 2 crores.
- Medium Enterprises – Enterprises with investment in plant & machinery more than Rs. 5 crores but not exceeding Rs. 10 crores can get registered under such type. Whereas, enterprises in the service sector with investment in plant & machinery more than Rs. 2 crores but not exceeding Rs. 5 crores, can apply for registration under such kind.
- Aadhaar Number is required to get registration. In case of companies or partnership’s Aadhaar number of director or partner is required respectively.
- Name of Entrepreneur is required besides Aadhaar.
- Mobile number linking with Aadhaar is must, in case not linked other documents like pan card copy, photo ID proof etc. is required.
- Other information like social category, gender, name and type of enterprise, location of plant, official address, date of commencement, previous registration (if any), bank details, major activity, NIC code, persons employed, DIC is required during registration process.
Frequently Asked Questions
To avail various schemes, subsidies, and other numerous benefits from Government of India, small enterprises can register themselves under the MSMED Act.
No, though being optional, it is advisable to micro, small and medium enterprises to get themselves registered under the Act to enjoy host of benefits. Manufacturing plant or a commercial space is required for registration. MSME registration is not mandatory, but recommended.
Enterprise can apply for Provisional Registration Certificate (PRC) prior to commencement of business. Permanent Registration can be applied after commencement of business and/ or can be applied for an item that doesn’t require Industrial License.
Provisional Registration Certificate is valid for a period of 5 years. However one can apply for Permanent Certificate after commencement of business. Provisional certificate can be renewed after expiry of such period if unit is not set or production doesn’t start.
To obtain term loan or working capital loan from financial institutions/ banks at a cheaper rate, Obtain facilities for accommodation, land and other approvals, obtain various necessary NOCs and clearances from regulatory bodies such as Pollution control board, etc.
Normally it takes 5-20 days to get MSME registration depending upon the state in which unit is established.
There is no difference between MSME, SSI, and Udyog Aadhaar. All these are one and the same. Earlier MSME (Micro, small and medium enterprises) used to be called SSI (Small scale industries).
No, Udyog Aadhaar is for running units only. New businesses don’t require Udyog Aadhaar.
National Industry Classification Code (NIC Code) can be searched in the NIC-2008 list or 2 or more characters can be typed in search text to match your industry classification.
Package Deals on Offering
- MSME Registration,TAN Registration, IECode Registration and Trademark Registration.
- MSME,TAN and IE Code Registration.
- Assistance in obtaining MSME Registration.