Tag Archives: MSME Registration

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:

  • Proprietorships
  • Partnership firm
  • One person company
  • Limited liability partnership
  • Private Limited Company
  • Producer Company
  • 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:

  • Easy to get a bank loan – Once you obtain the MSME registration, then you can easily get a bank
  • Subsidy on Patent registration – Through MSME registration, a business entity and enterpriser can avail 50% subsidy on patent registration.
  • Industrial promotion subsidy – Enterprise having MSME registration is eligible for Industrial promotion subsidy.
  • Concession in electricity bills – Those who have MSME registration are entitled to get concessional benefit in respect of electricity bills.
  • Protection against delay payments – By obtaining the MSME registration, any enterprise can get protection against delay payments.
  • 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:

  1. Aadhar card number
  2. Validation of Aadhar
  3. Gender ID of the entrepreneur
  4. Name of the enterprise
  5. Type of your organization
  • f)PAN
  1. Location of your plant
  2. Residential address
  3. Your previous registration details, if any
  4. 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:

  • PAN of the enterprise
  • Bank details
  • Aadhar card
  • Proof of ownership of premises
  • Copy of licenses and Bills of Machinery purchased
  1. 6)Copies of Sale/Purchase bills
  • 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.

Source url – http://www.enterslice.gomilio.com/en/blog/easy-steps-for-msme-registration-43

MSME Registration Certificate Sample

Are you a micro or small or medium business? If yes, then MSME registration is assuredly compulsory for you. Legally it is not mandatory, but it is always advised to obtain the MSME registration for availing the benefits offered under the MSMED Act.

In this blog, as the title suggests, we will see the MSME registration certificate sample. But before that, it’s necessary to have a quick through on MSME and MSME registration.

What is MSME?

MSME stands for Micro Small and Medium Enterprises, and it plays a very significant role in the Indian economy or better says, it’s a backbone of the Indian economy. Therefore, the government of India has introduced various schemes, subsidies, and incentives to support and promote MSME/SSI (Small Scale Industries).

What is meant by MSME registration?

MSME registration is a process through which a company register itself under the Micro, Small and Medium Enterprises Development (MSMED) Act. An enterprise registered as MSME is allowed to avail various benefits offered by the Central and State Government.

MSME registration eligibility criteria

You are eligible for MSME registration under the following conditions:

  • If you’re a Sole Proprietorship
  • When you have a private limited company or limited liability partnership or one person company
  • If you have a production company that produces materials
  • In case, you belong to or are part of Hindu Undivided Family
  • If you work in association with another person
  • If you have a cooperative society
  • Or any other undertaking

Documents required for MSME registration certificate

For SSI registration online or to obtain an MSME registration certificate, you first need to prepare the following papers:

  • PAN card of all the directors and partners
  • Aadhaar card of all the directors and partners
  • Ownership proof of premises such as allotment letter or possession letter or lease agreement or property tax receipt.
  • In case of a rented premise, rent agreement and NOC from the landlord along with the utility bill
  • A scanned copy of sale bill for each end product and purchase bill of each raw material purchased
  • In case of partnership firm, a copy of Partnership Deed
  • A scanned copy of Memorandum of Association (MoA), Articles of Association (AoA) and Certificate of Incorporation (COI) in case of Private Limited Company Registration along with the Board’s Resolution authorizing the director to sign the application
  • A scanned copy of Industrial License obtained under the Industrial Development and Regulation Act,1951
  • A copy of a purchase bill of machinery installed
  • Bills pertaining to purchasing and installation of plant and machinery
  • An affidavit made on Rs. 10/- non-judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement, etc.
  • Current Bank account statement

Procedures of MSME/SSI registration

The method for MSME registration is quite simple and can be canceled at any time if the annual turnover exceeds more than a threshold limit. MSME registration process is as follows:

  • As per the rules & regulations, you need to file an application with the respective government department or file an online application directly on the official website of Udyog Aadhaar Registration.
  • A person willing to register for more than one industry can do individual registration.
  • In the application, the applicant needs to provide the details of the industry they want to run along with the necessary details and documents.
  • The document required are Aadhaar card, Industry name, Address, PAN details, email address, contact number, and some other common information.
  • The individual can provide self-certified certificates.
  • Bank account number along with IFSC code.
  • The primary business activity of the company.
  • NIC 2-digit code.
  • Investment made in Plant & Machinery / Equipment
  • There’s no registration fee for this process.
  • Once the details are filled and uploaded, you will get the registration number.
  • The documentation process will take around 2-3 working days to complete.

Note: To complete the process in a hassle-free manner and to avoid any future difficulty, all the necessary formalities must be completed.

Know about reliefs provided to MSME borrowers.

For more details on MSME registration process or SSI registration online, contact Enterslice.

Source url – https://enterslice1.weebly.com/blog/msme-registration-certificate-sample

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://entersliceindia.blogspot.com/2019/01/what-were-effects-of-gst-on-msme.html

Follow the Procedural Steps for MSME Registration in India

In this article we will discuss what MSME Registration is, why you should do MSME Registration, the types of MSME Registrations and how can you do your MSME Registration. So let’s begin by knowing firstly what MSME is all about?

MSME stands for micro small medium enterprises. In the same category there’s another term i.e SSI which stands for small scale industries. Both fall under the same category. Now these businesses come under Udyog Aadhaar and are the foundation of economic growth and development making them the back bone of Indian economy.

The Indian government hence gives an array of benefits to them to encourage their number and progress. The benefits include things like lower rates of interests, some favouring rules regarding settlement of disputes with the distributors or promoters, more tax rebates etc. But to avail for these attractive benefits, all you need is an MSME Registration. The MSME Registration is not mandatory but it’s a good idea to get the Registration just to avail the benefits.

The laws related to MSME Registration.

The MSME Registration application is done under the MSMED act and the MSME businesses could be in both the sectors, either manufacturing or service. The MSME Registration has three categories depending on the type of work and the annual turnover or investments are put forth into that business.

Following are the three categories: –

Types of MSME Registration based on their size, Investment and turnovers

  • Micro Enterprises- This micro enterprise Registration category is the smallest of all three categories of MSME Registration. And the criteria for getting an MSME Registration under micro enterprise is: –
  1. The Investment in manufacturing sector should not be more than the amount of Rs 25 lakhs.
  2. The Investment in case your business is in service sector, should be not more than the amount of Rs 10 lakhs.
  • Small Enterprises-The small enterprise category is the middle one within the MSMEs and the Registration criteria for it is the following: –
  1. The Investment for manufacturing sector of businesses should be more than the amount of Rs 25 lakhs but shouldn’t exceed the amount of Rs 5 crore.
  2. In the service sector, the Investment must be more than the amount of Rs 10 lakhs but not exceeding the amount of Rs 2 crores.
  • Medium Enterprises-The very last category of the MSMEs for MSME Registration. And the criteria for it is as followed: –
  1. The manufacturing category must have an investment more than the amount of Rs 5 crores but must not exceed the amount of Rs 10 crores.
  2. The service sector must have an investment more than the amount of Rs2 crores and not exceed the amount of Rs5 crores.

What should you be prepared with for MSME registration application?

  • Government Registration frees
  • The MSME Registration application form.
  • Prescribed list of documents for submission at the registrar office.

Procedural steps for MSME/SSI Registration

  • Complete the MSME Registration application form or SSI Registration application form.
  • Prepare required documents for MSME Registration, this takes 1 to 2 days.
  • File the MSME Registration application along with all the arranged documents. Filing is to be done with the MSME registrar. This step takes 2 days.
  • Next, you submit MSME Registration application and it will get verified and your job for MSME Registration here gets complete. And you now just wait for the approval.
  • Now after approval, you will be granted MSME Registration certificate.

Now your MSME Registration is complete and you are eligible for availing for the government given benefits. But in case, you need the help of professionals then our reliable experts are 24/7 hr available to help you in every possible way. Dial our phone number or drop us an email anytime when you need.

Source url – http://entersliceindia1.emyspot.com/blog/legal/follow-the-procedural-steps-for-msme-registration-in-india.html

Online MSME Registration Process

Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play a crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in industrialization of rural & backward areas.

ORGANIZATIONS CONSIDERED AS ‘MSME’

MSME are classified in two classes:

  1. Manufacturing enterprises: Organization engaged in the manufacture, production, processing or preservation of goods with the following limits as categorized below:
  • MICRO ENTERPRISE- Investment in plant and machinery upto max 25 lakh
  • SMALL ENTERPRISE- Investment in plant and machinery more than 25 lakh but upto 5 crores
  • MEDIUM ENTERPRISE- Investment in plant and machinery more than 5 crores but upto 10 crores
  1. Service enterprises: Organization which is engaged in providing or rendering services with the following limits as categorized below:

    MSME Registration

    MSME Registration

  • MICRO ENTERPRISE- Investment in equipment upto 10 lakh
  • SMALL ENTERPRISE- Investment in equipment more than 10 lakh but upto 2 crores
  • MEDIUM ENTERPRISE- Investment in equipment more than 2 crores but upto 5 crores

In order to promote the ease of doing business and align the definition of MSME with GST regime, recently the Government has proposed to change the criteria for classifying MSMEs.

It proposes to define SSI Registration on the basis of annual sales turnover rather than on investment basis which results in no distinction between manufacturing and service unit.

The proposed thresholds are:

  • Turnover upto 5 crores- MICRO ENTERPRISE
  • Turnover upto 75 crores- SMALL ENTERPRISE
  • Turnover upto 250 crores- MEDIUM ENTERPRISE

Before proceeding with registration, one should have a clear roadmap of setting up of MSME

ROADMAP FOR SETTING UP ‘MSME’

  1. Setting up the Project

For establishing MSME, the first and foremost thing is to select the project for providing the product/ service which could generate the sufficient surplus for the economy

  1. Product selection

While finalising the product ensure its ease of availability, its accessibility to the market.

  1. Technology Selection

Installation of modern machinery and equipments is most important for the efficient operation of MSME

  1. Arrangement of finance

No MSME unit can operate without monetary support. Financial assistance in India for MSME units is available from a variety of institutions.

  1. Filing of the single registration form at the website.
  2. NSIC adopts certain procedures for hire purchase of machinery
  3. Construction of Building

Designing of the factory building is an essential part

  1. Getting the Utility Connections

Power and water supply for carrying the operation is necessary

  1. Clearances

Enterprises has to obtain various clearances and permissions depending upon the nature of his unit and products manufactured.

  1. Quality Certifications

To gain the strong position in this competitive environment Quality Certification has also become extremely important. Government has launched Schemes to provide Financial assistance for availing the certification.

REGISTERATION REQUIREMENT UNDER MSME

Though the MSME registration Process is not mandatory for the enterprises, it is always advisable to get registered as MSME under MSMED Act, 2006 because the government has provided numerous benefits to the MSME since it is contributing in the growth of economy in terms of output, exports and employment opportunities.

Also, in recent years the MSME sector has been consistently grooming in comparison to the overall industrial sector and in order to promote it government regularly announces various schemes for its growth.

Registration process for MSME is simplest by filling up only one page i.e., Udhyog aadhaar memorandum through online mode.

The only information is required is Aadhaar number and name of owner.

**Note:

  • The registration at Udhyog Aadhaar is on self declaration basis. No documentation is required.
  • Certificate of registartion will be issued within 24 hours
  • More than one Udyog Aadhaar can be filed with the same Aadhaar number

Source url – http://enterslice.over-blog.com/2018/06/online-msme-registration-process.html

What is MSME registration?

Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, was introduced to encourage Micro, Small and Medium enterprises and facilitate their development in the competitive markets. The government through various schemes, subsidies and incentives tries to promote such enterprises. Through MSME registration is not mandatory but to avail those benefits MSME Registration is preferred.

What are the criteria for Micro, Small and Medium enterprises?

As per the official notification in February 2018, the classification of the enterprises is now made through‘annual turnover’, unlike earlier which was according to the ‘investment in plant and machinery/ equipments’.

  1. A Micro Enterprise is a unit which has the annual turnover not exceeding Rs. 5.00 crore;
  2. A Small Enterprisea unit which has the annual turnover more than Rs. 5.00 crore but not exceeding Rs. 75.00 crore;
  3. A Medium Enterprisea unit which has the annual turnover more than Rs. 75.00 crore but not exceeding Rs. 250.00 crore.

The above amendment was brought to name the classification growth oriented and align the structure to the new tax regime revolving around GST.

Before Notification

Sr. No. Type of Enterprise Manufacturing Enterprises

(Investment in Plant & Machinery)

Service Industry

(Investment in Equipment)

1. Micro Does not exceed Rs.25 Lakh Does not exceed Rs. 10 Lakh
2. Small Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore
3. Medium Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore Exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore

What are the benefits of MSME registration?

  • Collateral free loans up to a limit of 50 lakh.
  • Various government ministries hold development programs at utmost stage increasing the overall productivity of MSMEs.
  • Support is provided to new micro and small enterprises. Guidelines on how to start a business assessing loans from banks are also provided.
  • Government also provides financial assistance for reimbursement of part of one-time registration fee and annual recurring fee for first three years for using bar coding.
  • The rates of interest on loan offered to MSMEs are comparatively lower.
  • Businesses registered under MSME are able to obtain government license and certification quicker than the regular process.
  • MSME registered businesses enjoymultiple income taxes and capital gains tax subsidies from the government.
  • Enterprises that have MSME Registration Certificate are also eligible to claim for reimbursements of ISO Certification expenses.

These are few benefits and there are plenty more available to MSME registered enterprises which makes the registration desirable for the eligible.

Who is eligible to apply for MSME Registration?

Following can apply for MSME registration:

  1. Proprietary
  2. Hindu Undivided Family (HUF)
  3. Partnership
  4. Co-Operative
  5. Private Limited Company
  6. Public Limited Company
  7. Self Help Group
  8. Others

What details are required to be noted in the MSME Registration Form?

  1. Now adhaar card is now essential for the applicant or the authorized representatives.
  2. Name of the owner
  3. Social Category
  4. Gender
  5. Physically Handicapped status
  6. Legal name of enterprise.
  7. Type of Organization
  8. PAN Number for Co-Operative, Private Limited, Public Limited and Limited Liability Partnership, OPC (optional for remaining types)
  9. Locations of Plant
  10. Official Registered Address
  11. Date of Commencement
  12. Previous Registration Details, if any
  13. Complete Bank Details
  14. Primary activities
  15. National Industry Classification Code/s(NIC Code
  16. Number of persons employed
  17. Investment in Plant & Machinery/ Equipment
  18. The details of the DIC (District Industry Center) nearest to such business.

What are the documents required for the MSME registration?

The entity making the application for MSME registration has to submit following documents:

  • Proof of registered address
    1. Allotment letter, possession letter, lease deed or property tax receipt,or a municipal license in the business name or in the name of the proprietor, partner or director of the business, If the premise is self-owned.
    2. Rent receipts or utility bills and a no objection certificate from the landlord is required, If the premise is rented.
  • Copies of Sale Bill and Purchase Bill:
    1. Entity is required to submit copy of sale bill related to each end product that it will supply.
    2. For each raw material that it will purchase, a purchase bill has to be submitted.
  • Partnership Deed and Registration Certificate for a partnership firm
  • Incorporation Certificate, Copy of MoA and AoA, in case of Private Limited Company along with Board’s Resolution authorizing the director to sign the application
  • Copy of Licenses
  • Purchase bill of machinery installed
  • Bank Account Statement
  • An affidavit of Rs. 10/-non judicial stamp paper duly attested by Notary Public affixed providing the status of machinery installed, power requirement etc.

Source url https://entersliceindia.wixsite.com/mysite/blog/what-is-msme-registration

MSME Registration for Small, Micro and Medium Sized Organization

Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 gave us clear definitions as to what exactly are the meaning of Small, Micro and Medium Sized Enterprises. These definitions are based on the amount of investment in Plant & Machinery in case of production or any further processing of goods, and investment in equipments in case of Services.

Definition in relation to Goods

Enterprises Investment in plant & machinery
Micro Upto 25 lakh rupees
Small More than 25 lakh rupees – 5 Crore rupees
Medium More than 5 Crore rupees – 10 Crore rupees

 

Definition in relation to Services

Enterprises Investment in plant & machinery
Micro Upto 10 lakh rupees
Small More than 10 lakh rupees – 2 Crore rupees
Medium More than 2 Crore rupees – 5 Crore rupees

Ministry of Micro, Small and Medium Enterprises is responsible for formulation of all the laws and rules & regulations for implementation of such laws relating to MSMEs.

Micro, Small and Medium Enterprises form a major part of the economic sector of any developing country. MSME Act was introduced with an objective to support small, micro and medium sized enterprises to  promote equitable development. 

IS MSME Registration Mandatory ?

The answer to this question is, NO. MSME Registration is only a choice provided to the enterprises and is not a compulsory requirement. It is a choice given to the SSI/MSME category entrepreneurs weather to get MSME registration or not. MSME registration is not an obligation and also comes with number of benefits including:

  • Subsidies under tax laws
  • of Power tariff subsidies, help in development of specialized industrial estates etc.
  • Exemption under Direct Tax Laws
  • Easy availability of Bank Loans that too at reduced interest rates.

Are SSI Registration & MSME Registration different?

Many confuse Small Scale Industries Registration with MSME registration, but the fact is that SSI Registration is replaced by MSME Registration. And there is no fuzz relating to it, as MSME Registration Process is quite simple. The appli8cant is required to have Aadhaar Card.

And if the applicant has not started business, they can apply for provisional registration. It is valid for a period of 5 years and can be reapplied after that.

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