Everything About MSME Registration - Corpseed



Micro-Small & Medium Enterprises (MSMEs) contribute widely to the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small and Medium Enterprises and are required to be registered to avail profits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is very important, as it enables these enterprises in availing profits from various government launched schemes. MSMEs are categorized into two sections, such as manufacturing and service enterprises.
Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government changed the MSME classification* by including composite rules of both investment and annual turnover. Also, the differentiation between the manufacturing and the services sectors under the MSME definition has been removed. This removal will create a similarity between the sectors. The following is the updated MSME classification*, where the investment and seasonal turnover, both are to be considered for deciding an MSME.

MSME – Merged Criteria: Investment and Annual Turnover

Micro Enterprises - Manufacturing & Services sector both Investment less than Rs. 1 crore, Turnover less than Rs. 5 crore 
Small Enterprises - Manufacturing & Services sector both Investment less than Rs. 10 crores, Turnover up to Rs. 50 crores

Medium Enterprise - Manufacturing & Services sector both Investment less than Rs. 50 crores, Turnover up to Rs. 250 crores

Documents Required:

Aadhar card
Rent Agreement
Property Paper
Cancelled cheque
Company Registration i.e., Sale or Purchase Bill and PAN card

Business Address Proof

To self-owned premise - Possession letter, allotment letter, lease deed, property tax receipt.

To Rent owned premise - Rent receipts, utility bills, or document evidencing the landlord's ownership, NOC from the landlord.

Benefits of MSME Registration

MSME registration benefits for getting government tenders
Under bank loan, 15% import payment on fully automatic machinery
Protection against Delayed Installments
Concession on Electricity
Gets exemption under Direct Tax Laws

List of details to be provided for MSME Registration on the application form

Name of Entrepreneur as per Aadhaar card
Aadhar number
PAN Card
Gender
Category (General, OBC, SC/ST)
Office Address
Mobile Number, Email ID
Date of Commencement of Business
Bank account number and IFSC code
Nature of Business
Number of Employees
Physically Handicapped
Organization type (Proprietorship, PVT. LTD. Company, Limited Liability Partnership, Partnership firm, Society or trust, etc.)
Name of Enterprise
Location/Address of the organization
Investment Amount in organization and Machinery
NIC 2 Digit Code – choose the primary activity
Additional detail of the enterprise

Some MSME Schemes launched by the government

Udyog Aadhaar memorandum: Aadhaar card is a 12 digit number given to all single persons by the government. In MSME, the Aadhaar card is a mandatory requirement. The profit of enrolling in this scheme is ease in availing credit, loans, & subsidies from the government. The registration you can be done both ways in the online mode or offline mode.

Women Entrepreneurship: Women entrepreneurs are at a missing figure, with only 14% of all organizers being women. To develop and cater to the potential of women organizers, many schemes provide benefits and skill-training to young women who desire to take up entrepreneurship and MSMEs as an option.

Grievance Monitoring System: This scheme is started to control and cater to all sorts of complaints and suggestions by business and MSME owners. It proposes to make the method of grievance handling transparent and fast.

Incubation: This scheme helps innovators with the implementation of their innovative designs, ideas, or products. Under this from 75% to 80% of the project price can be funded by the government.

Zero Defect Zero Effect Scheme: In this Zero Defect Zero Effect scheme are also called (ZED)scheme in the manufacturing industry. That means to manufacture goods that have zero defect, hence better quality products.

Credit Linked Capital Subsidy scheme: Under this scheme, new technology is implemented for the business owners to substitute their old and old-fashioned technology.

Quality Management Standards and Quality Technology Tools: This scheme aims that if you registering in this scheme, then it will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology.


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