MSME Registration
Micro, Small, and Medium Enterprises (MSME) is an acronym for Micro, Small, and Medium Enterprises. Small businesses are important to the growth of any country's economy. The Indian government has created a number of initiatives to help small and medium-sized enterprises survive and flourish in order to promote new and current firms.
What is MSME?
Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is enacted by the Government of India and it is defined as “Enterprises involved in the manufacture or production, processing or preservation of goods as specified below: • A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh • A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore • A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.Micro, Small, and Medium Enterprises (MSME) is an acronym for MSME. MSME industries are the backbone of the economy in a developing country like India. Small-scale enterprises, or SSIs, are another name for these businesses. MSME registration is done through the udyamregistration.gov.in government portal. The Indian government has created a number of initiatives to help small and medium-sized enterprises survive and flourish in order to promote new and current firms. To enjoy the benefits of all of these advantageous programmes, you must first register as an MSME under the MSMD Act. Udyog Aadhaar or SSI registration are other terms for MSME registration.
What are the benefits of the MSME?
- Under the credit guarantee fund scheme for micro and small businesses, you can acquire unsecured loans from banks
- Some commodities have been designated for production by small businesses exclusively.
- It becomes much easier to get licences, registrations, and approvals for your microenterprise after you have received the MSME certificate. It would be easier to complete these forms if you can produce your MSME certificate.
- Participating in international trade fairs, events, and buyer-seller meetings earns you favourable treatment. You can also host international seminars and conferences in the MSME sector's interest.
- Banks charge a lower interest rate to MSME registered businesses than they do to other businesses.
What are the types of MSME?
- A micro enterprise is an enterprise where the investment in the equipment should not exceed Rs. 10 lakh.
- A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
- A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
What is the process of registration of a MSME?
- For the registration of small and medium scale industry, select service package at onfiling.
- For registration our experts will call and take required information.
- Upload documents as required for registration i.e. Aadhaar number, industry name, address, bank account details,
- By this a person can provide self-certified certificates.
- After filling the details and uploading, you will get the registration number.
Required Documents
| Acceptable Document | Document Type | Additional Details |
|---|---|---|
| Business address proof | . | . |
| Copies of sale and purchase bill | . | . |
| Partnership deed / MOA and AOA | . | . |
| Copy of licenses and bills of purchased machinery | . | . |
FAQs
You Ask, We Answer
For MSME Registration any entrepreneur having valid Aadhaar Number can apply Online.
For issuance of MSME Certificate Aadhaar Number is mandatory.
Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognized MSE clusters. A cluster based approach may be more beneficial o (a)in dealing with well-defined and recognized groups o (b) availability of appropriate information for risk assessment o (c) monitoring by the lending institutions and o (d) reduction in costs. The banks have been advised to treat it as a thrust area and increasingly adopt a similar for SME financing. United Nations Industrial Development Organisation (UNIDO) has identified 388 clusters and covers 21 states in various parts of the country. The Ministry of Micro, Small and Medium Enterprises has also approved various cluster’s list under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Micro and Small Enterprises Cluster Development Programme (MSE-CDP) available in 121 Minority Concentration Districts. Accordingly, banks have been advised to take appropriate measures to improve the credit flow to the identified clusters.
According to RBI circular, banks are mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the MSE sector. Banks may on the basis of good track record and financial position of MSE units, increase the limit of dispensation of collateral requirement for loans up to Rs.25 lakh with the approval of the appropriate authority.
The Ministry of MSME, Government of India and SIDBI provides the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with an object to facilitate flow of credit without the need for collaterals/ third party guarantees to the MSE sector. The purpose of this scheme that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) assures the lender that, in the event of an MSE unit, which availed collateral- free credit facilities, fails to discharge its liabilities towards lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 % of the outstanding amount in default.
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