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MSME Registration

Overview of MSME Registration

A micro enterprise, where the investment in Plant and Machinery or Equipment does not
exceed one crore rupees and turnover does not exceed five crore rupees;

A small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees;

A medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

What is MSME Registration for MSME in India?

  1. Bank Loan (Collateral Free) – Government of India has provided collateral free loans to all small and micro-business sectors. This initiative guarantees funds to micro and small scale enterprises. A trust called the Credit Guarantee Trust Fund Scheme was launched by the Government of India, SIDBI (Small Enterprise Development Bank of India) and the Ministry of Micro, Small and Medium Enterprises to ensure that this scheme (Credit Guarantee Scheme) is implemented for all. Micro and Small Scale Enterprises.
  1. Subsidy on patent registration  – As per current laws, MSMEs registered with the Ministry of MSMEs benefit from 50% subsidy on their patent registration fees. It encourages small businesses and firms to continue working on innovative projects and technologies. The grant can be availed by submitting the application to the concerned ministries.
  1. Overdraft interest rate exemption – Businesses and enterprises registered as MSMEs can avail 1% on overdraft in a scheme that differs from one bank. This helps keep small businesses safe in a hostile market.
  1. Industrial Promotion Grant Eligibility – Businesses registered as MSMEs are eligible for subsidies for industrial promotion as provided by the government.
  1. Protection from Payments (Delayed Payments) – MSMEs constantly face the risk of delays that disrupt their entire business. To protect registered companies, the Supreme Court has ordered that a person purchasing goods or services from registered MSMEs must make payment on or before the agreed date of payment or within 15 days of acceptance of the goods or services by them. If the buyer delays payment for more than 45 days after acceptance of the products or services, the buyer will be liable to pay interest on the amount agreed to be paid. This interest rate is triple the rate notified by the Reserve Bank of India.
  1. Low electricity bill – All companies with MSME registration certificate are entitled to get concessions on their electric bill. This enables businesses to increase production and take on more orders without having to worry about capital expenditure on costs such as electricity and maintenance. Micro, Small and Medium Enterprises can avail the concession by applying to the Electricity Department along with the registration certificate.
  1. ISO Certification Fee Reimbursement – Any registered Micro, Small and Medium Enterprise can claim reimbursement of expenses incurred for obtaining ISO certification. This motivates the entrepreneurs to get their respective businesses ISO certified which helps them to do business overseas in terms of high quality exports.

Eligibility criteria for MSME Registration in India

Only service providers and product manufacturers can get MSME registration. The classification of micro, small and medium enterprises is as follows.

  1. micro-enterprise
  2. Investment in Plant & Machinery: Up to INR 1 Crore
  3. Turnover: Up to INR 5 Crores
  4. Small scale industry
  5. Investment in Plant & Machinery: Up to INR 10 Crores
  6. Turnover: Up to INR 50 Crores
  7. medium industry
  8. Investment in plant and machinery: Up to INR 50 crores
  9. Turnover: Up to INR 250 Crores

Documents required to MSME Registration

The applicant for MSME must submit the following documents with the registration application.
  1. Business address proof
  2. Copies of Sales bill or Purchase Bill
  3. Partnership Deed or MOA and AOA
  4. Bills of machinery
  5. Copies of licenses

FAQs About MSME Registration ?

 

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