MSME/ SSI Registration

MSME Registration or SSI Registration is compulsory for small business entities. It will help them provide subsidies, incentives, concessional rate loans, and extra government registration benefits. The ability criteria to get the MSME registration certificate to differ based on the investment in plant and machinery.

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MSME/SSI Registration

MICRO, SMALL AND MEDIUM ENTERPRISES: MSME REGISTRATION

The MSME (Micro, Small, and Medium Enterprises) are considered primary for our Indian economy. This sector acts as a job producer for our youth and operates a vital role in the Industrialization of the Rural Backward areas. An MSME Registration is obtained as per the Micro, Small, And Medium Enterprises Development Act. Though, getting registration is not at all compulsory. Still, it shall consider that the businesses or entities with MSME Registration are eligible to avail of the Government’s benefits and schemes.

Examples of such advantages are exemption from the Direct Tax, Private-Sector lending, exemption from Excise Duties, power tariff subsidies, capital investment subsidies. Some of the pre-eminent and well-known MSMEs in India are DFM Foods, Molecular Connections, Chem Process System, SL Packaging, etc.

Further, MSMEs (Micro, Small, and Medium Enterprises) and SSIs (Small Scale Industries) are qualified to get registration under the MSMED Act. Moreover, according to the MSMED (Micro Small and Medium Enterprise Development) Act, 2006, the term MSME involves the following two listed:

    • Service Enterprise: This Industry is mainly involved in giving services to different industries.
    • Manufacturing Enterprise: This Enterprise is employed in manufacturing activities.

However, the same analysis has been excreted by the Ministry of Finance by the announcement made on May 13, 2020.

WHAT IS A MSME?

As per the Micro, Small and Medium Enterprises (MSMED) Act, 2006, MSMEs and SSIs were enacted to strengthen and boost India’s Small-Scale sector. Earlier, both Service and Manufacturing were recognized as distinct and separate from each other, having various amounts prescribed for the Investment Required.

As per the latest correction made in the definition of MSME by the Ministry of Finance, the difference between the service and manufacturing sectors has been reduced, Investment Limits have been Revised, and Turnover Criteria have been introduced. Our Finance Minister published this amendment on May 13 2020.

The following listed are considered as MSMEs under the MSMED Act, 2006:

Micro-Enterprise
Type of Industries Type of Investment Amount of Investment Amount of Turnover
Service and Manufacturing Sector In-Plant and Machinery Less than Rs 1 Crore Less than Rs 5 Crore
Small-Enterprises
Type of Industries Type of Investment Amount of Investment Amount of Turnover
Service and Manufacturing Sector In-Plant and Machinery Rs 1 Crore to Rs 10 Crore Rs 5 Crore to Rs 50 Crore
Medium Enterprises
Type of Industries Type of Investment Amount of Investment Amount of Turnover
Service and Manufacturing Sector In-Plant and Machinery Rs 10 Crore to Rs 20 Crore Rs 50 Crore to Rs 100 Crore

ELIGIBILITY CRITERIA FOR UDYOG AADHAAR MSME REGISTRATION

To become qualified for getting MSME Registration, the owner must invest less than Rs 20 Crores and must have a turnover below Rs 100 Crore (as per the amendment made on May 13 2020) in plant and machinery either for a Manufacturing or Service Sector.

If these industries exceed the investment limit at any point in time, they must surrender or cancel their MSME Registration given under the MSMED Act.

HOW TO REGISTER COMPANY ONLINE? - A DETAILED REGISTRATION PROCESS

Company Registration in India will promote startups’ progress and give an extra advantage over those who have not enrolled. The Ministry of Corporate Affairs governs the company registration method with rules and regulations fixed by the law.

1: Application for Digital Signature Certificate (DSC).

2: Apply for the Director Identification Number(DIN).

3: Application for the name availability.

4: Fill up the EMOA and EAOA to register a private limited company.

5: Apply for the PAN (Permanent account number) and TAN (Tax Deduction Account Number) of the company.

6: Issued certificate by RoC with PAN and TAN of incorporation

7: Current Open account on your company name

WHO CAN APPLY FOR REGISTRATION UNDER MSME ACT?

Who can satisfy either one or various models mentioned below are qualified to apply for registration under the MSME Act:

    • Those have a Limited Liability Partnership.
    • Those who are part of the Hindu Undivided Family.
    • Those who are a Sole Proprietor.
    • Those who own a partnership Firm with another party in an Association.
    • Those who are an owner of One Person Company.
    • Those who own Production Company that with the production of materials.
    • Those who have a Private Limited Company.
    • Those who have Co-operative Societies.

ADVANTAGES OF UDYOG AADHAAR MSME REGISTRATION

Although getting MSME Registration is not compulsory for the MSMEs dealing in the service and Manufacturing Sector. Still, one cannot avail of the advantages or the benefits given after receiving MSME Registration. The following listed are the advantages of Online MSME Registration:

    • Any company that holds an MSME Registration can get loans from banks at a relatively cheaper rate, approximately 1- 1.5 percent. This is much lower than the standard bank rates.
    • Several Tax Allowances and Exceptions are provided to MSMEs.
    • MSMEs are allowed to carry forward the balance for MAT ( Minimum Alternate Minimum Tax) up to 15 years, which is ten years in the general case.
    • There are different tenders available only for enterprises having registration in MSME Act.
    • MSME receives accessible credit abilities from different Financial Entities.
    • Enterprises having registration in MSME Act are given greater preference in connection to traditional enterprises.
    • Companies or enterprises holding an MSME permit have better completion opportunities as they get direct entry in major national and international trade exhibitions and have better chances to present themselves to the world.
    • MSMEs can get Collateral free loans as banks do not accept any insurance security for loans up to Rs 10 Lakhs.
    • Enterprises having certification under MSME can get recompense of ISO Certification.

WHAT IS THE SIGNIFICANCE OF Micro, Small, and Medium Enterprises REGISTRATION FOR SSI (Supplemental Security Income)?

The steps that deals with the consequence of MSME Registration are discussed here:

    • Getting MSME registration is essential for organizations, as it brings both credibility and clarity to the entity’s functioning.
    • If anyone is planning to start an MSME anywhere in India, then, in this case, the MSME department authorized by the Indian Government will help promote his or her enterprise.
    • Registration in MSME is a must for availing benefits such as incentives, subsidies, and bank loans.

WHO HAS THE POWER TO ISSUE MSME REGISTRATION CERTIFICATE?

The method of getting MSME registration is fully done online, and every state has its own department to deal with this. Further, the DIC (District Industries Centre) is liable for MSME registration. The DIC department also has the power to issue the MSME Registration Certificate along with the MSME Number.

WHAT ARE THE REQUIRED DOCUMENTS TO BE SUBMITTED FOR MSME REGISTRATION IN THE APPLICATION FORM?

The following are the list of documents and information that you have to give as per the application form:

    • Details of Aadhar Card 
    • Gender
    • Whether the concerned appellant is a physically disabled or not-Physical status
    • Enterprise’s Name
    • Owner’s name as per the Aadhar Card
    • Enterprise Type- choose from the given list.
    • Permanent Account Number (PAN) Card Details
    • Plant’s Location
    • Social category- whether the candidate belongs to the General, OBC, SC, or ST category-group
    • Plant’s Address
    • Incorporation Date of the Entity
    • Previous Registration Details- if in case any
    • Bank details
    • The Activity of Enterprise
    • NIC Code
    • Employment Details- Total Number of Employees working in the organization
    • Investment Details in Plant and Machinery

DOCUMENTS CHECKLIST FOR UDYOG AADHAAR MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) REGISTRATION

The documents required for getting online MSME Registration are as follows:

    • PAN Card Details of the proprietor/ all the directors/all the partners.
    • Aadhar Card Details of the proprietor/all the directors/all the partners.
    • Confirmation of ownership of the place being used as a Registered Office such as the Allocation Letter/Possession Letter/Property Tax Receipt/Lease Agreement.
    • If the place is used is a rented premise, then the Rent Agreement with the NOC (No-Objection Certificate) from the landlord and the utility bill.
    • Hard Copy of Purchase Bill of every raw material purchased.
    • Copy of Sale Bill for each end product.
    • A Copy of Partnership Deed in the case of a Partnership Firm.
    • Hard Copy of MOA (Memorandum of Association) and AOA (Articles of Association) and COI (Certificate of Incorporation) in the case of Private Limited Company together with the Board’s Resolution passes allowing the director to sign the application.
    • Hard Copy of the Industrial License as registered under the Industrial Development and Regulation Act, 1951.
    • An affidavit on Rs. 10/-Non-Judicial Stamp Paper rightfully attested by the Notary Officer declaring the Power Requirement and the Status of the Installed Machinery etc.
    • All Bill of the Installed Machinery.
    • Bills relating to Purchasing and Installation of plant and machinery.
    • Hard copy Bank Account Statement.

PROCEDURE OF ONLINE UDYOG AADHAAR MSME REGISTRATION

The steps included in the process of getting MSME Registration are mentioned below:

    • Fill the MSME Form: In the first and foremost step, the applicant is required to fill the application form with all the necessary details. After that, the candidate is required to submit the form to the concerned MSME department. This step can be made either offline or online.
    • Provide all the needed Documents: Now, the applicant must provide all the required documents for getting MSME Registration in the next step. Such documents should be according to MSME Certification application Form. Usually, this process takes 2 to 3 working days to reach the next step.
    • Filing the Micro, Small, and Medium Enterprise (MSME) Application: In the third step, the appellant must upload all the required documents and apply to the MSME Registrar. Then the administrative authorities will process and approve the authenticity and genuineness of all the papers in the next two working days.
    • Approval of Application and the IOC (Issuance of Certificate): After successfully verifying all the papers submitted, the regulatory authorities will issue the company’s Incorporation Certificate. Hereafter, the said firm will be considered as registered under the MSME.

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Package Inclusions

    • Consultation on Registration
    • File application for Registration
    • Registration Certificate

FAQs for MSME Registration

MSME is the abbreviated form for the Micro, Small, and Medium Enterprises, which is defined under the MSMED Act, 2006, based on the investment made in plant and machinery and equipment.
It is always better to apply for an MSME registration before starting the business operations as this specific Registration will help in getting clearance from many government bodies.
When the PRC (Provisional Registration Certificate) is issued, it shall remain valid for five years. Thus, after the expiry of five years, PRC shall lapse.
Although it is not mandatory to get MSME registration, it is always advised to register as MSME to avail the several government benefits, such as subsidies and incentives.
Udyog Aadhar is an Aadhar for a business that the MSME department issues to the MSMEs (Micro, Small, and Medium Enterprises). Further, it comprises of the 12-digit government identification number.
Banks always prefer MSMEs over regular enterprises or businesses for granting loans. Moreover, the interest rates on loans offered are still low for an MSME than a typical enterprise. Further, Preferential treatment is also given to the MSMEs in the case of delay in repayment.
The original value of the Plant and Machinery is considered for obtaining MSME registration.

We provide services related to MSME registration all over India. Moreover, we have already completed MSME registration for various clients in Gujarat, Delhi, Mumbai, Bangalore, Chennai, Kolkata, Uttar Pradesh, etc.

Yes, Aadhar Card is compulsory for obtaining Udyog Aadhar Scheme Registration. Further, if in case the appellant is other than the proprietor, then the Aadhar card of the said partner or director will be required.
No, the MSME sector covers only the Manufacturing and Service Industries. Hence, Trading companies are not covered under the ambit of MSME. Further, the MSME sector supports startups by offering them subsidies and benefits, but trading companies are similar to intermediaries, a link between customer and manufacturer. Therefore, they are not covered under the scheme.
No, the MSME or the Udyog Aadhar certificate is required only for a single entity regardless of multiple branches or plants. However, it shall be pertinent to note that all the various branches or plants must be furnished.
Till date, in total, 20 items are being reserved to be manufactured only by MSMEs.
The Ministry of MSME notified that Udyog Aadhar is taking a cue from the Prime Minister's radio show named "Man ki Baat" in September 2015.
NSIC is the acronym form for the National Small Industries Corporation that arranges raw materials in bulk for small businesses and is also a part of the Ministry of MSME.
The following listed are eligible to apply for an MSME Loan:
  1. Based on Turnover: Less than Rs 5 Crore;
  2. Based on the amount invested in the plant and machinery: Less than Rs 25 Lakhs for the Manufacturing Enterprises and less than Rs 10 Lakhs for the Service Enterprises;
  3. Based on Credit Requirement: Less than Rs 50 Lakhs
MSME Form- 1 is used by the MSMEs (Micro Small and Medium Enterprises) to file their half-yearly returns in the context of their outstanding payments, reasons for the delay, etc.
Yes, Aadhar Card is a compulsory prerequisite for getting MSME Registration.
Yes, MSMEs are qualified to get Collateral free loans as banks do not accept any deposit security for the loan amount up to Rs 10 Lakhs.
No, Credit Score is not necessary for MSMEs.
The term Credit rating means an estimate to figure out the ability of an enterprise or entity to meet all the financial needs based on the previous year's dealings. Further, even though obtaining a credit rating is not compulsive in nature, it is suggested that the MSME borrowers get their credit rating done as it would assist them in the credit pricing of the loans taken from banks.
The following listed are the prominent and famous MSME companies in India:
  1. SL Packaging
  2. Emmi Polyarns
  3. Mynd Solutions
  4. DFM foods
  5. Chem Process System
  6. Astha Minmet India
  7. Molecular Connections
  8. Ankur Scientific Energy Technologies
  9. Stargirl Warehousing and Collateral Management
Yes, a Sole Proprietorship Firm is eligible to apply for MSME Registration.
The acronym SSI stands for Small-Scale Industries.
Yes, Publishing Books comes under the ambit of the MSME Sector.
The MSME certificate is provided online, later you can download it as per your requirement from the portal.
The acronym MSME stands for Micro Small and Medium Enterprises.
The following listed are the benefits of an MSME Registration:
  1. Reservation Schemes for the Manufacturing and Service Sector
  2. Opportunity to present themselves in the International Trade Fairs
  3. Collateral Free loans from banks
  4. Reimbursement of ISO Certification.
  5. Lower rates of Interest
  6. Excise Duty Exemption Schemes
  7. Subsidy Tariffs
  8. Tax Subsidy
Yes, a new and existing business is eligible to apply for MSME or Udyog Aadhar registration. However, it shall be considered that the existing unit is not only functioning but also meeting the threshold limits for the Registration.
Yes, an individual can apply for MSME registration by visiting the Government's official portal. However, it is always advised to take expert assistance for obtaining Registration as it reduces the scope of mistakes.
The Initial Return must be filed on May 3 of every year. However, the half-yearly return is required to be filed on October 31 for the period starting from April to September and on April 30 for the period starting from October to March.

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