MSME registration

Updated on : 2020-Nov-11 16:46:35 | Author :

Contents

 

  1. MSME classification

  2. Documents needed for the MSME registration

  3. Eligible entities for the registration under the MSME

  4. Activities which are not covered under the MSMED Act, 2006 for the registration of UAM

  5. Benefits

  6. Additional Information

 

 

The definition of the Micro, Small & Medium Enterprises or MSME as per the provisions of the Micro, Small & Medium Enterprises Development or MSMED Act, 2006 the Micro, Small and Medium Enterprises (MSME) may be classified into two divisions:

 

1. Manufacturing Enterprises

2. Service Enterprises

 

How MSME registration is done based on the MSME classifications

1. Manufacturing Enterprises:-The enterprises that are engaged in the field of manufacturing or producing goods employing the plant and machinery in the process of value addition to the final product which has a distinct name or character or use.

2. Service Enterprises: - The enterprises which are engaged in providing or rendering services.

 

MSME classification criteria

 

Composite criteria: Investment and Annual turnover

Classification: Manufacturing and services

Micro: Investment < Rs 1 Cr

Turnover < Rs 5 Cr

Small: Investment < Rs 10 Cr

Turnover < Rs 50 Cr

Medium: Investment < Rs 20 Cr

Turnover < Rs 100 Cr

 

Documents, Benefits, and Additional information about the MSME registration procedure 

1) Aadhaar No. of the Proprietor or Director or Promoter or Partner or Authorised person

2) PAN of the Proprietor or Partnership or LLP or OPC or Private Limited or Public Limited etc.

3) Address Proof of the Business place

4) The Partnership Deed or LLP Agreement or MOA & AOA as per the case

5) Bank Account Proof (Bank Statement or Cancel Cheque)

6) Copy of the Industrial licenses, if it is applicable on the Bills of Machinery Purchased

 

Activities which are not covered under the MSMED Act, 2006 for the registration of UAM

 

The following are the activities not covered under the MSMED Act, 2006 required for the registration of UAM-

1) Forestry and Logging activities

2) Fishing and aquaculture activities

3) Activities like the Wholesale and retail trade, repair of motor vehicle and motorcycles

4) Wholesale trade activities except for the motor vehicles and motorcycles

5) Retail trade activities except for motor vehicles and motorcycles

6) Activities of the household as employees for the domestic personnel

7) The Goods and Service Producing activities of the private household for own uses.

 

Benefits

 

The Registration of Micro, Small and Medium enterprises, or MSME is not mandatory but the process of registration will help to take several benefits from the government. They are:

1) Collateral Free Loans from the Banks

2) Bank Credit or Loan at a very low-interest rate

3) Statutory aid like reservation in tenders

4) The subsidy in the IPR Registration

5) Eligibility for the Industrial Promotion Subsidy

6) The credit linked Capital Subsidy

7) Helps in getting the Government tenders

8) Compensation of the ISO Certificate expenditure etc

 

Additional Information

 

1) Udyog Aadhaar is for the running units. No need to apply for the upcoming unit.

2) Udyog Aadhaar Registration is valid as long as the unit is operating.

3) The Government is not charging any kind of fees for the registration process of MSME.

4) Only manufacturing and service enterprises can register under the MSMED Act,2006, the traders are not allowed to register.

 

 

 

Additional resources

 

 

Get FREE Advice