MSME Registration

 

What Advantages Come with Using MSME Registration?

Micro, small, and medium-sized businesses in India can benefit from a number of advantages through MSME registration. A few of them are listed below: -

• Assists in Obtaining Government Tenders: Because the Udyam Registration Portal is integrated with the Government e-Marketplace and several other state government portals that offer convenient access to their marketplace and e-tenders, MSME helps obtain government tenders without any difficulties.

• Exemptions Under Direct Tax Laws: According to the government's plan and contingent on business activity, businesses that include MSME Registration are eligible for a Direct Tax Exemption in the first year of operation.

• Collateral-Free Bank Loans: All small and microbusiness sectors are eligible for approved collateral-free loans from the Indian government. Funds are guaranteed to micro and small businesses under this arrangement. Both new and established businesses can seek benefits under this exact plan. The Government of India introduced the "Credit Guarantee Fund Scheme" (CGS) for Micro & Small Enterprises to provide the micro & small business sector with access to financing without collateral. This program has the right to cover both new and existing businesses.

• Overdraft Interest Rate Exemption: According to a program that differs from bank to bank, businesses or enterprises registered as MSMEs are eligible for a 1% overdraft interest rate exemption.

• Reimbursement for ISO Certification Expenses: The registered MSME requests reimbursement for the operational expenses incurred in order to obtain ISO certification.

• Electricity Bill Concession: All businesses with MSME status are eligible for this concession.

• Registration Certificate by submitting an application to the power department and presenting the MSME registration certificate.

• Patent Registration Subsidy: Businesses with an MSME-granted certificate of registration are eligible for a substantial 50% subsidy. By submitting applications to the appropriate government, one can receive this subsidy for patent registration.

• Eligibility for Industrial Promotion Subsidy: Companies that are registered as MSMEs are also eligible for the government-recommended Industrial Promotion subsidy.

## Protection Against Delayed Payments: Customers of MSME/SSI goods and services occasionally have a tendency to postpone payments. By granting them the authority to collect interest on deferred or delayed payments from the buyer's end, the Ministry of MSME assists these businesses. Such disagreements must be resolved through adjudication and reconciliation in the shortest amount of time.

• Waiver of Stamp Duty and Registration Fees: In India, all newly constructed industrial units with MSME registration and expansions would not be required to pay stamp duty or registration fees.

• Bar Code Registration Subsidy: According to the plan, all businesses with MSME registration are eligible for the Bar Code Registration subsidy.

• Subsidy on NSIC Performance and Credit Ratings: According to the scheme, businesses that have MSME registration are eligible to get a subsidy on NSIC Performance and Credit Ratings.

• Eligible for Industrial Promotion Subsidy: Under the MSME Registration scheme, all businesses are eligible for the Industrial Promotion Subsidy (IPS).

• Tender Access: To promote small company participation in India, a number of government tenders are exclusively announced to MSMEs.

• Advantages of the Reservation Policy: It guarantees more consumer goods production in small businesses and expands job prospects by establishing small-scale companies.

• 15% CLCSS Subsidy for Plant & Machinery Purchases: The Ministry of MSME is running a program specifically called the "Credit Linked CGSTI Subsidy Scheme" to help MSE upgrade its technology. The updated plan provides a 15% capital subsidy (up to a maximum of Rs. 15 lakhs) for the purchase of plant and machinery in an effort to support MSEs' technological advancement.

• Reservation Policies for the Manufacturing/Production Sector: One of the key policy measures for advancing this text-center sector has been the statutory provision in the Industries (Development and Regulation) Act, 1951, for the reservation of items for exclusive manufacture in the SSI sector.

 

Who is eligible for MSME?

The following organizations are eligible to register: Any micro, small, and medium-sized firm that meets the requirements can apply to become an MSME in India. In addition to micro, small, and medium-sized businesses, the following entities are eligible to register: public companies, proprietorship firms, limited liability partnerships (LLP), private limited companies (Pvt. Ltd.), and one-person companies (OPC). Additionally, the company can apply for MSME registration if it is in the manufacturing or service industry.

• Any organization that has a current Aadhar number may apply for MSME status. Therefore, in order to provide an MSME Certificate, the Aadhaar Number is required.

Registration Requirement: The government updated the MSME categorization under the Atmanirbhar Bharat Abhiyan by adding a composite criterion that included both investment and annual turnover. The manufacturing and service sectors have the same upper limit. The composite criterion classification is shown below:

Micro, Small, Medium, Manufacturing, and Servicen: Less than one crore rupees was invested.

1. Turnover under Rs. 5 Cr. 1. Less than Rs. 10 Cr. in investment.

2. Turnover Under Rs. 50r. 1. Less than Rs. 50 Cr was invested.

3. Turnover Under Rs. 250 Cr.

 

What Are the Essential Elements of a Registration Application?

The following are the necessary elements of an MSME application for MSME registration:

• The name of the person or organization on the Aadhar card.

• Gender; • Social category (General, OBC, SC/ST); • Physical handicap

• The organization's name and type.

• Individual and Enterprise PAN Cards

• The plant's location and address.

• Address Proof of Office; • Country, State, District, City, Tehsil, and PIN Code.

• The applicant's email address and mobile number.

• Date of business commencement; • Bank account number and IFSC code; • Enterprise business activity; • NIC 2-digit code based on principal activity.

• Any further enterprise information

• The quantity of workers; • The amount spent on plant and machinery;

 

 

 

 How much does it cost to register as an MSME?

MSME registration costs between Rs. 500 and Rs. 1500.