MSME (Full Form) Online Registration Process [Certificate download]
Certain new rules and regulations have been set up for the micro, small and medium enterprises by the government of India. In this case, the ministry is considered the highest decision making a body and the creation of the new laws as required. The new business trends, economic strength and expectation of every country are mainly dependent on young entrepreneurs. It is known that government of India did not face any problem in dealing with the small business organizations and therefore, an easy procedure should be followed in the registration of MSME or micro, small and medium enterprises.
What does MSME stand for?
This is a small institution for investment and it plays an important role in maintaining the Indian economy. In addition, this institution creates plenty of employment opportunities for the increasing number of unemployed in the country. In this way, it has been possible to contribute in the field of exports and providing support to a number of manufacturing sectors. It is helping the sectors with quality raw materials, and other goods required for running the business smoothly. Moreover, the Indian government has also planned for several subsidies to promote it with the help of different schemes to the registered companies after the declaration of MSMED Act 2006.
What is the importance of MSME in India?
- Under the Indian economy, MSME comprises 45% of direct and indirect exports. Registration under MSME is important so that the business organizations can avail the benefits that have been stated by state and central government.
- Under the MSME, the rate of interest will be low-interest rates; exemption of excise duty can also be reduced along with tax subsidy and others. In order to get discounts, it is necessary to register to an industrial base.
- For industries such as partnership business, sole proprietorship and others, you have to get proof from MSME.
What are the types of MSME available?
Industries belong to micro, small and medium-sized enterprises are considered under MSME. This industry forms the backbone of Indian economy. It helps to promote economic development for the country. This MSME also works as the source of capital investment which is required by the small industries in the purchase of machinery and other items required in the business. The MSME Act 2006 will apply only to the industries which are included under the manufacturing sector. In addition, it also includes the industries which invest in purchasing items for service sector enterprises. There are three categories of companies which are included under MSME.
- Microenterprise which is also known as the small-sized enterprise. Under this sector, near about rupees 25 lakhs can be invested for plants and machinery. For the service sector, they can invest up to rupees 10 lakhs in order to make a good investment.
- Small-scale enterprise has the capacity to invest up to rupees 25 lakh and rupees 5 million for the plant and machinery manufacturing industries. This investment will vary from rupees 10 lakh to rupees 2 crores in the service sector.
- Medium sized enterprise investment for around rupees 50 million to rupees 10 million and the amount is around rupees 2 to rupees 5 million in the service sector.
What are the benefits of registering industries under MSME?
- Tax benefits – After the business enterprise is registered with MSME, it can avail some of the tax benefits such as exercise duty rebate, exemption from direct taxes, get subsidies for the traders so that they can establish business via the government.
- State government exemptions – For the business who have registered under MSME, they take electricity, tax and industrial subsidy issued by the state government. Exemptions are provided by the state in case of sales tax.
- Benefits from the banks – Most banks and financial institutes recognise MSMEs so that they can sanction loans at a lower rate required for running the business smoothly. The rate of interest will be 1 to 1.5% lower compared to the normal rate of interest.
- Necessary approval from Central and state government –Official license and certification are given to the business organizations from the state and the central government. Several tenders are available under the government that can only be used by the small sized enterprises under MSME.
What are the documents required for the registration procedure under MSME?
- Original and Xerox copy of Pan card
- Aadhaar card driving license or passport which is required for the identity certificate.
- Passport size picture.
- If you have rental property, then the document of rent agreement is also required.
- Property related documents
- Declaration document
- Persons who will be witnesses
What is the method of registration under MSME?
When planning to register under MSME, you can opt for either via the offline or the online mode.
Details of the offline mode of registration
- First, you have to fill in the application form under the industry you are applying for. You have to provide required documents pertaining to the registration procedure under MSME.
- Before the final submission of the application, get the documents checked from a specialist and then go for the final submission. You can submit the application in the district industry center.
- Following this, the application will be filed with the MSME registrar along with the documents. The experts need to verify the same and after that, once the application has been approved, you will get MSME certification for the business. In addition, you will be notified via email or courier service about the completion of the registration procedure.
- For the online registration procedure, you have to go the link that has been issued by the Indian government. As soon as you click on the link, the application page comes up. After filling all the necessary details, you have to submit the same. While giving the name of the owner and other details, make sure that the right information is given. You have to give the right captcha and then click on the submit button.
- Following this, you will receive a unique number via email or registered mobile number. You have to enter the number and then enter the captcha correctly to complete the registration procedure.
- When you plan to start a business under MSME,final registration is important after which you will receive the last MSME certification. After you start with the production of the business organization, you can apply for the permanent certification.
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