MSME Registration

Overview

MSME refers to the Micro, Small and Medium Enterprise. These enterprises plays a vital role in the economy of India. It is because these industries serves as the raw material producer for the large scale industries. They also produce those products which are not produced by the large scale industries. These industries also acts as a job provider in rural and backward areas where large scale industries does not operate. They are easy to establish in backward areas due to their low establishment and maintenance costs. They help the government in developing the backward areas by providing job opportunities and improving the standard of living of the people residing in those areas.

Although, online registration for these industries is not compulsory. But it is always recommended to them to get the registration done, to avail various benefits offered by the government. These benefits include less rate of tax, low electricity charges, availability of and on low prices, subsidies in other resources, etc.

Documents required for the Registration

• For proprietorship concern:
  • Aadhar Card of Proprietor
  • Pan card of Proprietor
  • Any registration document of proprietorship firm (Shop establishment license, GST Registration, Trade license)
  • Bank Account details of proprietorship concern
  • ITR of Preceding year of proprietor concern(if filled)
  • GST registration certificate of proprietor concern
  • Mobile number and mail address of proprietor
  • Nature of business
• For Partnership concern:
  • Aadhar Card of authorized partner
  • Pan card of Authorized partner
  • Partnership deed of firm
  • Bank Account details of firm
  • Pan card of partnership concern
  • ITR of Preceding year of partnership concern (if filled)
  • GST Registration certificate of partnership concern
  • Mobile number and mail address of Authorized partner
  • Nature of business
• For Company /LLP:
  • Aadhar Card of Authorized director/ Authorized Designated Partner
  • Pan card of Authorized director/ Authorized Designated Partner
  • Certificate of incorporation
  • Pan card of company
  • Bank Account details of company
  • Memorandum of Association
  • ITR of Preceding year of company (if filled)
  • GST Registration Certificate of company
  • Mobile number and mail address of Authorized director/ Authorized Designated Partner

Benefits for MSME

• Cheaper bank loans: banks provide loans at a cheaper rates to these industries. The rate of interest on loans advanced to these industries by banks is as low as to 1-1.5%. This interest rate is very much low from the interest rate charged on loans to large scale industries.
• Easy access to credit: small/ micro industries are now provided with the loans without any kind of collateral. This is the initiative by the central government to advantage these industries and encourage development of these industries in backward areas.
• Fast approvals: small scale industries are given higher preferences by the government as they are beneficial for them. These industries are given approvals to be set up faster than any other industry.
• Tax rebates: small scale industries are given tax rebates. Government provide them with tax subsidies which is helpful for the business owners and induces them to establish more of these industries.
• Cheap infrastructure: this is another advantage given to these industries by the government. Land, electricity, water and other resources are provided to them at cheaper rates or on subsidized rates.
• Easy access to tenders: these industries have easy access to tenders of government such as for small constructions because of the preference given to them over large scale industries.

How MSME helps in Saving Government Fees?

• Subsidy in patent registration (50%)
• Subsidy in Trademark registration(50%)
• Low-cost ISO certification
• Bar code registration (100%)