MSME Registration
To boost the small/medium businesses- Memorandum (Udyog Aadhaar Memorandum issued by the MSME authority)
What You Will Get
Memorandum
Udyog Aadhaar Memorandum issued by the MSME authority
Acknowledgement
An acknowledgement slip with payment details
Documents Required
Only Scanned Copies are needed, Scanned copy of PAN Card of all directors and Aadhar card/ Voter ID/ Passport/ Driving
ID Proof
PAN card and Aadhar of the owner/director/partner
Registered Business Proof
Partnership business would have to submit a copy of the partnership deed and registration certificate (if registered). A company might have to submit a copy of their AoA and MoA. Also, the copy of the general meeting resolution and board meeting resolution that authorises the director to sign the MSME application might have to be attached.
Address Proof
Notarised rent agreement and No Objection Certificate from the owner (for a rented office), Property registration, House Tax (for an owned property) and Utility Bill (no older than 2 months).
Bills and licenses
Copies of the sale bills of all the finished goods and purchase bills of all raw materials of the business will have to be submitted. Additionally, bills related to the purchase and installation of plant and machinery and copies of the company’s industrial licensing (if applicable) might have to be submitted.
How long does it take?
2 days
DAY 1
Application Preparation
2-3 Working Hours
We will guide you through the entire process of MSME/UDYOG AADHAR registration. On receipt of the required documents and basic information, your MSME application will be prepared by our team.
DAY 1
Application Filing
2 Working Hours
Once you approve the draft application, we will file the same (along with the supporting documents) through the online portal of the concerned MSME State Government office. The supporting documents for SSI Registration might vary from State to State.
DAY 2
Application Processing
5-7 Working Days
Applications will be examined by the government examiner. We will help resolve queries arising at this stage (if any). When the application is approved, the government will issue the provisional MSME Registration Certificate in case the unit hasn’t been set up. Once the unit is set up, you will receive the permanent MSME certificate.
DAY 2
Filing Completed
Acknowledgement Sent
Frequently Asked Questions
What is MSME Certificate?
MSME stands for Micro Small and Medium Enterprises. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, to boost the small businesses. MSMEs in the manufacturing and service enterprises can obtain the registration under the Act.
Who are eligible to obtain the MSME/SSI/UAM registration?
Any type of business entity such as proprietorships, HUFs, partnerships, OPCs, LLPs or private limited companies can be classified as an MSME as per the MSMED Act, 2006, and are eligible to apply for the MSME online certification. The classifications of the MSMEs are based on the investment in plant and machinery.
For manufacturing entities:
Type of Unit |
Investment in Plant and Machinery |
|---|---|
| Micro Enterprises | Not more than Rs.25 Lakhs |
| Small Enterprises | INR 25 Lakhs to INR 5 Crores |
| Medium Enterprises | INR 5 Crores to INR 10 Crores |
For service provider entities
Type of Unit |
Investment in Plan and Machinery |
|---|---|
| Micro Enterprises | Not more than Rs.10 Lakhs |
| Small Enterprises | INR 10 Lakhs to INR 2 Crores |
| Medium Enterprises | INR 2 Crores to INR 5 Crores |
Will an MSME registration help in getting loans from the bank?
MSMEs get loans, credit, and overdraft facilities from the bank at subsidised rates as compared to other regular companies. MSME also have comparatively higher possibilities of securing loans and enjoy exclusive schemes.
What are the benefits of registering MSME?
The enterprises register MSME to avail the benefits of:
- Bank loan at subsidised rate
- Rebate and considerations under the Indian tax laws
- Easy access to credit
- Excise exemption scheme
- Power tariff subsidies
- Capital investment subsidies
- Tender preferences
- Access to mudra loan scheme
Is MSME registration mandatory?
As per the MSMED Act, the MSME registration is voluntary. However, it is advisable to register under MSME Act, as it opens up a host of benefits. The purpose of the MSME / UDYOG AADHAR registration is to avail the benefits and subsidies provided by the government.
What is the validity of the MSME registration?
The provisional MSME registration certificate is valid for five years. As soon as you set up the business unit, you can apply for the permanent license. The permanent registration certificate is valid for a lifetime period. But, if you are unable to set up the unit within five years or the unit exceed the investment limit then you may re-apply for the MSME certificate.
- A provisional registration certificate is first issued if the operations of the MSME have not been set up. This is valid for a period of 5 years.
- Once the MSME commences its operations, a permanent registration certificate is issued, as the name suggests, the registration is permanent.
- In case you are unable to commence operations with the period of the provisional registration, you may re-apply for the MSME registration online.
What are the different types of MSME?
The act divided the MSMEs into two categories:
- Enterprises engaged in manufacture or production or processing
- Enterprises engaged in providing or rendering services
These enterprises are further sub-divided into Micro, Small and Medium enterprises based on their investment in plant and machinery.
When to apply for MSME Certificate?
Online MSME registration is at the discretion of the business owner. However, it is advisable to obtain MSME registration right after the incorporation in order to avail the benefits of the subsidies and schemes.
Is there any provision for getting a composite loan from banks?
Commercial banks can grant composite loans within a limit of INR 1 Crore. MSMEs can use this loan to avail working capital requirements and avoid delay in commencement of commercial production.
What is not counted as part of the initial investment?
While calculating the investment value, land and building will not be counted as investment. For a manufacturing unit, the cost of plant and machinery above Rs.25 crore and for a service unit cost of plant and machinery above Rs. 10 crores are not counted as an investment. Also, depreciation will not be deducted from the cost of plant and machinery. The original value will be taken into consideration.
What are the various schemes offered under MSME registration?
- Priority sector lending
- Credit linked capital subsidy scheme
- Credit guarantee fund trust for micro and small enterprises
- Procurement for raw materials and marketing activities
There are certain facilities and subsidies including tax subsidies, power tariffs subsidies and capital investment subsidies, which are available to only registered MSMEs.
What is Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)?
CGTMSE is a scheme available for registered MSMEs. Under this scheme, banks offer the finance with the limit of INR 100 lakhs without any collateral security. Every bank recognised under MSME Act has separate ceiling limits for financing MSMEs under the CGTMSE Scheme.
What is Micro & Small Enterprises Cluster Development Programme (MSE-CDP)?
The Government adopted the cluster development approach to enhance the production and competition, as well as capacity building of MSMEs. Clustering of units enables the service providers to provide services more economically.
Does one have to be present physically to obtain the MSME registration?
No, the whole MSME enterprise registration process is done online. You can send the scanned copies of all the required incorporation documents. All the forms and documents are filed electronically and are digitally signed.
What is the need for the MSME/ SSI registration?
Obtaining the MSME/ SSI registration is not mandatory but it’s a preferable alternative to reap the advantages available to micro, small and medium scale enterprises.
- Banks have created special schemes for MSME/SSI and make available collateral free loans.
- Every enterprises with MSME/SSI registration can avail the exemption under direct tax in the initial year of the business.
- Enterprises that have MSME/SSI registration certificate can avail the concession on electricity bills.
- Excise exemption scheme
Location
Office No. T-4, S-521/522, 3rd Floor Moon House Building, Laxmi Nagar, Delhi, 110092
Contact Us
☎ 7050056056
support@licitwink.in