Micro, Small and Medium Enterprise Development (MSMED)

satyapal singh July 20, 2021August 3, 2023 Micro, Small and Medium Enterprise Development (MSMED)

All the business which are operating in the market and want to get a legal existence and want avail benefits under MSME scheme can get register themselves under Micro, small and medium enterprise development act 2006 and as per government enacted act Micro, Small and Medium Enterprise Development (MSMED) Act 2006, micro, small and the medium has been defined as under:For Manufacturing and service sector bothMicro means an enterprise where investment in plant and machinery does not exceed 1 crore and Turnover does not exceed 5 crore.Small means an enterprise where investment in plant and machinery more than Rs.1 crore but does not exceed Rs. 10 Crore and Turnover does not exceed 50 croreMedium means an enterprise where investment in plant and machinery more than Rs.10 crore but does not exceed Rs. 50 Crore and Turnover does not exceed 250 croreMSME remains under any of these three classifications for Micro, Small, Medium Enterprises and any venture falling in under. MSME ventures are the foundation of any economy and a motor of financial development, developing fair progress for everyone.And with eCommerce solutions available today, the reach of MSMEs gets even broader. In this way, the Government of India will support and advance MSMEs through various sponsorship schemes and encourage these companies through the MSMED act. MSME Registration is required to take advantage of the benefits provided for by the MSMED Act from the central or state government and the banking sector. MSMED act requires that every MSME be licensed whether the company is service-related or for manufacturing. MSME registration is a useful plot to exempt the extract, impose endowments, control tax sponsorships, capital speculation appropriations, and others. MSME Udyog Aadhar registration has been replaced by Udyam Registration with effect from 1st of July 2020 as per the notification dated 26th of May 2020.All the registered entity which has UAM number or registered under Adyog Aadhar registration shall register again on Udyam registration portal on or after 1st of July 2020All enterprise registered till 30th of June 2020 shall be classified in accordance with this notificationThe registered enterprise registered prior to 30th of June 2020 will remain valid for a period up to the 31st day of March 2021 For more information Click Here

Benefits of MSME registrations

➲ Helps in getting a bank loanThe Government of India has made collateral-free finance facilities to the small and micro business entities. Banks and other money-related organizations, perceive MSMEs, have made excellent schemes for them. This more often than not removes the need for segment loaning, which implies a high likelihood of a credit being supported by your company and lower cost of bank financing.➲ Subsidy on Trademark registration and Patent registrationThe government provide 50% of subsidy on the registration fee of trademark or patent registration on holding MSME certificate➲ Exemption on overdraft interestBusiness registered under MSME will avail the exemption on the interest rate of OD which will differ bank to bank➲ Eligible to avail subsidy on industrial promotionBusiness registered under MSME will get subsidy can for business promotion➲ Tax benefitIn the initial years of your company, you can enjoy an excise benefit scheme, as well as exemption from some direct taxes.➲ Government Tender filingNSIC registered organization gets preference while seeking government tender and for NSIC Registration MSME is compulsory, indirectly MSME helps in seeking government tenders.➲ Concession on Electricity bill➲ Reimbursement of ISO certification charges. etc

Procedure of MSME registration

Step1. Verify your AadharThe first step is to verify your Aadhar on Udyog aadhar site and verify your mobile number registered with your aadhar number through OTP, if your number is not registered with aadhar then proceed with enrolment with other identities proof document.Step2. Fill up the formAfter mobile verification, MSME registration form will be open and form will consist of detail:

Form of the organisation (Proprietorship/partnership/company/LLP)
PAN detail of organization (compulsory for company/LLP)
Address detail of manufacturing or operating unit from where the business is operated
Address detail registered office address
Then choose your Sector under which you perform your business (Either Manufacturing sector/service sector)
Then choose your NSIC code (National Industrial Classification) as per your business
Then MSME holder mobile number and email id
Then provide the bank details
Provide the initial capital detail
Provide the worker’s detail (number of workers employed)

Step3: Review the form before submitting it.Step4: Submit the form and verify your OTP while submitting the form, after submission one UAM number will be generated note that for future reference.Step5: After submission of you will get your MSME certificate immediately or within 24hrsStep6: Print your MSME certificate

Documents and Information required for registration

Documents:➲ PAN copy of the business entity➲ PAN card copy of applicant (Director/Partner/proprietor)➲ Aadhar card of applicant (Director/Partner/Proprietor)Information required➲ Business Name and address detail of registered office and operational office➲ Detail of business for deciding your NSIC (about the product and services which business is providing)➲ Business Bank Account detail (Bank name, branch name, account number and IFSC)➲ Initial capital investment amount (in lakhs)➲ Number of workers employed➲ Date of establishment of business➲ Other information as per requirement.