MSME enterprises are Micro Small & Medium Enterprises engaged in manufacturing or service sector. These are classified on the basis of the amount of investment made in plant and machinery or in equipment as the case may be-
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Classification
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Manufacturing Sector
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Service Sector
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Investment in plant and machinery.
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Investment in equipment.
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Micro enterprises
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Less than Rs 25 lakhs.
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less than Rs 10 lakhs.
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Small enterprises
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Between Rs 25 lakhs and Rs 5 crores.
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Between Rs 10 lakhs to Rs 2 crores.
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Medium enterprises
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Between Rs 5 lakhs and Rs 5 crores.
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Between Rs 2 crores to Rs 5 crores.
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Benefits of MSME registration-
– Easy and cheap bank loan;
– Availability of MAT credit;
– Rebates in taxes;
– Easy Credit.
Process of Registration of MSME
Initial Registration: it is provided on provisional basis for the first five years. It is issued before actual commencement of business; one can obtain loans or raise working capital on the basis of this certificate.
Permanent Registration: Issued after the commencement of operation of business and its validity is permanent means no time limit is prescribed regarding the validity of the certificate.
Documents required in case of provisional registration:
– Three passport size photographs of proprietors or partners or directors as the case may be;
– Partnership deed in case of Partnership firm;
– Memorandum of Association, Article of Association and certificate of incorporation in case of private company;
– In case of rent property copy of NOC or Authorization letter from the landlord is required;
– Bills of Machinery Purchased.
Note: Requirements of documents may differ from one State to another.
Steps for Permanent registration of MSME
- After commencement of business fill the online form available on website or fill offline form at the Zonal office or District Office of the Department;
- Documents and details required for registration are Aadhaar number, name of industry, address, bank account details etc.;
- Once the detail-filled and upload you will get a registration number.
No registration fee is charged in this process