• In a developing country like India, MSME industries are the backbone of the economy.
• The MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and more than 6000 types of products are manufactured in these industries
• Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act but to avail such benefits, registration under MSME act is mandatory.
• Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act.
Benefits of MSME Registration:
• Lower rates of interest
• Tax subsidies
• Power tariff subsidies
• Capital investment subsidies
• It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
• easy access to credit
• Business registered under MSME are given higher preference for government license and certification.
• There are many government tenders which are only open to the MSME Industries
Enterprises Eligible for MSME Registration:
In terms of investment in plant & Machinery:
• For more than one industry : Can take individual registration.
• Required to fill single form available at MSME website.
• No registration fee required
• After filling and uploading the form, registration number would be granted.
“• PAN Card of the proprietor/ all the partners/all the directors
• Aadhar Card of the proprietor/all the partners/all the directors”
Business Address Proof
If the premise is self-owned:
• Allotment letter/Possession letter/Lease deed/Property tax receipt
If the premise is rented
• Rent receipt/ No objection certificate from the landlord
• Utility bill or document evidencing the landlord’s ownership
Copies of Sale Bill and Purchase Bill
Business is required to submit copy of sale bill related to each end product that it will supply. Also, with MaidThis for each raw material that it will purchase, a purchase bill has to be submitted
Additional Documents(Depending of Legal Constitution):
• Partnership Deed
• Copy of board resolution authorizing a director to sign the MSME application is also to be submitted.