In our blog, we will discuss the basic details of MSME Registration in India. Here we will provide the very basic information regarding MSME Registration, why to get an MSME Registration? and some basics on the online procedure of MSME Registration, where most of the people need experts help and guidance.
What is an MSME & What is the need of MSME Registration?
MSME is micro small medium enterprises. It’s the similar, rather falls under same category as SSI which is small scale industry. Both of these MSME and SSI Registration benefits are given under the Udyog Aadhaar. Both being the foundations of the economy in India almost like a backbone. The Indian government supports and promotes these businesses through many different schemes and rights over benefits. It’s their way to encourage more such Businesses. These benefits, for example, are like power rates of interests over loans and other rules favouring the business owners with regard to the settlement of disputesin a limited time period etc. But these benefits are limited to those who have done MSME Registration only. And this is why despite the fact that if you have a business, MSME Registration is not compulsory but one must get an MSME Registration just to avail for the government benefits.
What Are The Laws Related to The MSME Registration?
MSME Registration application is prepared and applied under the MSMED act. These MSMEs could be in both, service sector and manufacturing sector. The MSME Registration has a classification of categories depending on the type of operations the business does and the amount of annual turnover they make.
Following is how the three categories can be divided: –
Types of MSME Registration based on their size, Investment, and turnovers.
- Micro Enterprises- The micro enterprise Businesses under the MSME Registration is the smallest in size and the criteria for falling under this category is as followed:-
- The Investment made in the sector of manufacture must not be more than the amount of Rs. 25 lakhs
- And in case your business is of the service sector type, then the investments made should be less than Rs 10 lakhs.
- Small Enterprises- This is the 2nd and the middle of the three sizes of categories, the small-sized enterprise. To get an MSME Registration under small enterprise category is as follows:-
- In the sector of manufacture, the Investment made must not exceed the amount of Rs 5 crores. But it must be more than the amount invested in micro-sized industries which is Rs. 25 lakhs.
- Now similarly, looking at the service sector here, the amount of investment must be more than the amount of Rs. 10 lakhs but must not exceed the amount of Rs.2 crores.
- Medium Enterprises- This category has the biggest sized enterprise among the MSMEs. And the criteria for this is as followed:-
- The category that deals with the manufacturing sector has to be an investment which is more than the previous category which is small-sized enterprise. So the criteria is that the investment amount must be above Rs. 5 crores and upto should be Rs 10 crores.
- And similarly like previously mentioned two categories, the service sector must have an investment of Rs. 2 crores that doesn’t exceed the amount of Rs 5 crores.
What should you be prepared with for MSME registration application?
In order to get the MSME Registration done in India, you must have the following documents prepared with you to follow a hassle-free procedure online.
- Government Registration fees
- The MSME Registration application form.
- Prescribed list of documents for submission at the registrar office.
Have a Look at the Procedural Steps for MSME/SSI Registration
- Prepare and complete the form of MSME Registration or SSI Registration.
- Next, get all the prescribed list of documents.
- Once you have the documents for MSME Registration application file for the MSME Registration to the registrar.
- Now that you have submitted your MSME Registration application, it will be verified by the authorities and when they are satisfied with your submission you will be granted your approval.
- You shall receive your MSME Registration certificate and you are now a registered MSME business owner with rightful access to the government benefits.
We at Swarit Advisors are the best leading online legal service providers who are constantly available to support you in the best possible ways. All you can do is contact our specialists by discussing your problems and doubts so that we can guide you in the right direction with an accurate procedure to follow. Dial our phone number anytime in 24/7 hr or drop us an email when you need us.
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