MSME REGISTRATION

MSME REGISTRATION

Today we will discuss about the procedure of registration of MSME. But before that we have to understand the concept of MSME, what is the full form of MSME & why is this important?

If we talk about the full form of MSME, then it stands for Micro, Small and Medium Enterprises and nowadays, it becomes the backbone of the Indian Economy. If we talk about these companies, although they are small but constitute the roots level, where raw material or the services will be provided to the customers or to the large companies

Basically, these types of companies are classified into two main categories, which are services and manufacturing. However, like the other companies, MSMEs also requires the capital for the commencement of the company and for expanding it. Along this, for the fulfillment of their capital requirements, these companies (MSMEs) also apply for the business loans. For starting an MSME, registration is the first step and now we are going to discuss about the procedure of registering an MSME.

PROCEDURE OF REGISTRATION OF AN MSME

In India, every company is required to get registered with the respective authorities for starting business operations online or offline. The online process of registering an MSME is known as Udyam Registration, which is faster and more effective for MSMEs. So, for registering an MSME, applicant has to follow the below mentioned steps :-

Visit the official website :- Go to the official website of udyam registration, which is https://udyamregistration.gov.in/ . Then go to the section “Welcome to register here” and click on the option “For New Entrepreneurs” who are not registered as MSMEs.

Personal Information :- After following the above step, a new window will be open and there you are required to enter your 12-digit Aadhar number. once you have entered , click on “Validate & Generate OTP” and enter the OTP, which is received by you on your aadhar linked mobile number

PAN Number :- In the third step, you will have to choose the type of your firm on the basis of annual turnover, among Micro, Small or Medium enterprises. And for this, you will need to enter the PAN number & click on “Validate”.

Correspondence :- After following all the above steps, you are required to enter the full postal and as well as office address of the MSME such as, the name of the district, where the MSME is situated, pincode, name of the state, email address and mobile number.

Bank details :- Next step includes entering the bank details, like the bank account number, IFSC code etc. and click on “submit”.

Enterprise details :- In this step, you have to mention the main objectives or the activity of the business such as services or manufacturing and the number of employees.

Approval :- This is the final step of the procedure of registration & in this step you have to select the District Industry Centre (DIC). After then, accept the terms and conditions and click on “Submit” and after this “Generate OTP”. And for getting the registration number, enter the OTP and click on “Final Submit”.

REQUIRED DOCUMENTS

Partnership Deed :- This is the document of registration, if your business is started as a partnership firm. In case of a company, submission of a copy of Memorandum of Association & Articles of Association is mandatory.

Business Address Proof :- In case you are the owner of the business premises, business address proof must be submitted such as property tax receipt, allotment letter, and rent receipt.

Purchase Bill and Sale Bill :- For providing the proof of business transactions, you have to present a purchase or a sale bill.

Licenses & Machinery Bills :- The applicant is required to submit a copy of the industrial license and the bills or the receipts of purchasing of machinery

SSI REGISTRATION

For understanding the procedure of SSI Registration, first we have to understand the concept of SSI. Those business or industries, such as bakeries, beauty parlours and leather bag making units, that manufacture and render services by making a limited investment is known as Small Scale Industries. If we talk about the Indian economy, SSIs are crucial for it, as they are generating employment and not only this, they are utilizing local resources too. For promoting these industries and for accessing them, government provides a range of schemes and subsidies. If you also want to get benefited from these schemes as an SSI, you must have to register your SSI.

BENEFITS OF SSI REGISTRATION

In case of Small Scale Industries, registration is not mandatory. Voluntarily you can obtain an SSI registration certificate. After the registration, you will get the several benefits, which includes :-

• Reduced bank loan interest rates.
• Easy access to credit
• Access to government tenders
• Concessions and rebates that reduces the cost acquiring patents.
• Preference for government certification and license.
• State government incentives

Eligibility Criteria for SSI Registration

There are two types of small scale industries : Service and Manufacturing. Registration of Small Scale Industries can be obtained from any of these categories :-

Manufacturing enterprises

Micro :-In this category, investment in plant & machinery does not exceed the limit of Rs 25 lakh.

Small :- The investment on plant & machinery can exceeds the limit of Rs 25 lakh but not more than 5 crore.

Medium :- The investment in plant & machinery can exceed Rs 5 crore but not more than Rs 10 crore.

Service Industries

Micro :-The investment in equipment does not exceed the limit of Rs 10 lakh.

Small :- The investment in equipment exceeds Rs 10 lakh but not more than Rs 2 crore.

Medium :- The investment in equipment exceeds Rs 2 crore but not more than 5 crore

Required documents for SSI registration

• Proof of business address.
• Purchase bill copies of raw materials, machinery and so on.
• Partnership deed/AOA & MOA
• NOC from the pollution control committee

Registration procedure for small scale industries

Applying for a provisional registration :- In pre-operating period of these small scale industries, this certificate is given to them for helping them to secure capital. After applying for this, provisional registration will be provided without any physical inspection.

Starting the business :- The validity of the provisional certificate is up to 5 yrs and within this period, you must ensure that your firm firm becomes operational

Applying for a permanent SSI certificate of registration :- After following the 2nd step, if your enterprise becomes operational, within the period of 5 years, then you can apply to the Ministry of MSMEs for a permanent certificate.