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.

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.

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 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 FOR MSME/SSI REGISTRATION

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Make a partial payment (Rs.499)

Submit your document

Get MSME registration certificate

Note: After completing the process, you have to make the whole payment of the amount. 

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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.
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.
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.
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.
The acronym SSI stands for Small-Scale Industries.
Yes, Publishing Books comes under the ambit of the MSME Sector.
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