The Insider's Guide on how to get MSME Registration Number

11 Jun,2020

What are Micro, Small and Medium Enterprises (MSME)?

In a developing country like India, MSME  industries are the backbone of the economy. It is rightly termed as “the engine of growth” for India. The MSME sector contributes to 45% of India’s total industrial employment, 50% of India’s total exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries (As per Ministry of Micro, Small & Medium Enterprises). When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries(SSI’s).

In this blog, we will discuss the process on how to get your MSME registration number/SSI registration in India.

You might wonder if MSME registration is mandatory or not!

The MSME registration is not yet mandatory by the Government but registering under it will help you reap several benefits from the government including credit at a low-interest rate, incentives on products for exports, excise exemption, statutory aid such as reservations and the interest on the payments delayed due to unavoidable circumstances.  A government scheme called Udyog Aadhar registration has been helping MSMEs since 2015.

If your company is in the manufacturing line or service line, registrations for both can be obtained through the MSME act.

The MSME became operational on October 02, 2006. It was established to promote, facilitate, and develop the competitiveness of the micro, small, and medium enterprises.

The existing MSME classification was based on the criteria of investment in plant and machinery or equipment. If you want to enjoy the MSME benefits, you will have to limit your investment to a lower limit, as below :

 

Sector

Criteria

Micro

Small

Medium

Manufacturing

Investment 

< Rs.25 lakh

< Rs.5 crore

< Rs.10 crore

Services

Investment 

< Rs.10 lakh

< Rs.2 crore

< Rs.5 crore

 

These lower limits are limiting the urge to grow as a company is unable to scale their businesses further. 

There has been a long-pending demand for the revision of MSME classification so that you can further expand your operations while you continue to avail the MSME benefits.

Under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. Click Here to read more about ABA

The distinction between the manufacturing and services sectors under the MSME definition has been removed. This removal will create parity between the sectors. The following is the revised MSME classification, where the investment and annual turnover, both are to be considered for deciding an MSME.

                            Revised MSME Classification

Criteria

Micro

Small

Medium

Investment 

      & 

Annual Turnover

< Rs.1 crore

 &  

< Rs.5 crore

< Rs.10 crore

&

< Rs.50 crore

< Rs.50 crore

&

< Rs.250 crore

*Subject to notification

 

How to register as an MSME? 

You can apply online for MSME registration & verification. 

Click Here to register as an MSME and fill the application form.  

You can get an MSME certificate with lifetime validity in 2-5 working days and this certificate is for enterprises in both the manufacturing and service sectors. There is no limit with respect to the name used by you to register for new or existing businesses.

 

Benefits of MSME Registration:

benefits of msme registration

Your bank loans get cheaper as the interest rate is very low at around ~ 1 to 1.5%.

Various tax rebates are offered to MSME.

You are allowed a credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years.

Many government tenders are only open to the MSME Industries.

You can get easy access to credit.

Once you are registered, the cost of getting a patent done or the cost of setting up the industry reduces as many rebates and concessions are available.

You will be given higher preference for government license and certification.

vThere is a One Time Settlement Fee for non-paid amounts of MSME.

 

The registration process of MSME :

procedure for msme registration process

To do the registration for the small and medium scale industry, you have to fill a single form which you can do online or offline. Click Here to get the application.

If you want to do registration for more than one industry then you can do individual registration.

The document required for the registration is your Personal Aadhar number, Industry name, Address, bank account details and some additional information.

You can provide self-certified certificates.

There are no registration fees required for this process.

Post the documents are prepared and submitted to the MSME registrar; the experts will verify the submitted documents. This procedure requires 2 working days.

Once your MSME application is approved, your company gets registered and related documents will be sent to you.

 

Documents Required for MSME Registration

You have to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.

Business Address Proof

Copies of Sale Bill and Purchase Bill

Partnership Deed/ MoA and AoA

Copy of Licenses and Bills of Machinery Purchased

 

Business Address Proof :

If the premise is self-owned – Allotment letter, possession letter, lease deed or property tax receipt. If there is a municipal license in the business name or in the name of the proprietor, partner or director of the business, no other possession document is required to be submitted.

If the premise is rented – Rent receipt and a no-objection certificate from the landlord is required. Any utility bill or document evidencing the landlord’s ownership is to be submitted.

 

Copies of Sale Bill and Purchase Bill :

Businesses are required to submit a copy of the sale bill related to each end product that it will supply. Also, for each raw material that it will purchase, a purchase bill has to be submitted.

 

Partnership Deed/ MoA and AoA

If the business is a partnership firm, it has to submit its partnership deed. If the partnership firm is registered, it has to submit the registration certificate.

In case of a company, a copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted. With it, a copy of the resolution passed in the general meeting, and the copy of board resolution authorizing a director to sign the MSME application is also to be submitted.    

 

Copy of Licenses and Bills of Machinery Purchased

In rare cases, you have to submit a copy of an industrial license which is to be obtained by giving an application to Govt. of India. Further, all bills and receipts related to purchasing and installation of plant and machinery have to be kept safe and required to be submitted on demand.

 

List of details you need to provide for MSME registration on its application form:

Aadhaar number

Name of Entrepreneur as per Aadhaar card

Social category (General, OBC, SC/ST)

Gender

Physically Handicapped

Name of Enterprise

Type of Organization (Proprietorship, Partnership Firm, Private Limited Company, Public Limited Company, Limited Liability Partnership, Cooperative Society, Hindu Undivided Family, Self-Help Group, Society or Trust)

PAN Card

Location/Address of Plant

Country, State, District, City, Tehsil, PIN Code

Office Address

Mobile Number, Email ID

Date of Commencement of Business

Bank account number and IFSC code

Business Activity of Enterprise

NIC 2 Digit Code – choose a primary activity

Additional detail of the enterprise

Number of Employees

Investment Amount in Plant and Machinery

Declaration for  registration under MSME :

Click Here to know about Declaration on Registration as MSME can be done by filling the form

 

How can you download the MSME registration certificate?

Click Here to download the registration form

 

Declaration for non-registration under MSME:

Click Here to declare that your business/company has not been registered as MSME as on the date of declaration. Know more about the format.

 

MSME schemes launched by the Government:

udyog aadhar registration

The government has launched a number of schemes and support systems for enterprises. 

Udyog Aadhaar memorandum:

Aadhaar card is a 12 digit number given to all individuals by the government. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Registration can be done both online or offline.

Zero Defect Zero Effect:

Goods that are manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India. To achieve this the government has launched this scheme. Under this, if the goods are exported these are eligible for some rebates and concessions.

Quality Management Standards & Quality technology Tools:

Registering in this scheme will help the micro, small, and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology. Under these activities are conducted to sensitize the businesses about the new technology available through various seminars, campaigns, activities, etc.

Grievance Monitoring System:

This is beneficial in terms of getting the complaints of the business owners addressed. In this, the business owners can check the status of their complaints, open them if they are not satisfied with the outcome.

Incubation:

This scheme helps innovators with the implementation of their new design, ideas or products. Under this from 75% to 80% of the project cost can be financed by the government. This scheme promotes new ideas, designs, products etc.

Credit Linked Capital Subsidy Scheme:

Under this scheme, new technology is provided to the business owners to replace their old and obsolete technology. A capital subsidy is given to the business to upgrade and have better means to do their business. The small, micro and medium enterprises can directly approach the banks for these subsidies.

Women Entrepreneurship:

This scheme is especially started for women who want to start their own business. The government provides capital, counselling, training, and delivery techniques to these women so that they manage their business and expand it.

Click Here to read the FAQs related to MSME registration.

 

How do we assist you with MSME Registration/SSI Registration?

MSME Registration Consultants in Bangalore

We as your MSME registration consultants will help your business obtain MSME Registration to avail the benefits. MSME registration or SSI registration can be done through us in your city.

Step 1: You just need to fill our simple form which would ask about your basic information. It would be required while filing your application with the department.

Step 2: According to the details provided to us, we will draft your documentation accordingly. It would take around 1-2 working days.

Step 3: We will file your application along with the required documents to the MSME registrar. Before submission, our expert will verify all your documents properly.

Step 4: Once the application is approved and your MSME certificate is issued, we shall send it to you via email and courier.

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