The Classification, Benefits, And Document Required For Msme Registration
MSME units are the backbone of the Indian economy. A type of business entity, whether they are partnerships, LLPs, public or private companies, or sole proprietors, can register themselves as MSMEs with the Ministry of Micro, Small, and Medium Enterprises INDIA. Such units contribute to 45% of India’s total industrial employment, 50% of India’s total exports, and 95% of all industrial companies in India. These businesses are indigenous and generate employment opportunities, bringing prosperity to the people and the economy. They are termed as Micro, Small, and Medium Enterprises or MSMEs. It is no wonder that the Indian Government wishes to boost this sector and encourage entrepreneurs to grow by providing incentives.
How are the MSME units classified?
You need to register through the MSME act if you are engaged in the manufacturing or service line. The MSME units are segregated into different parts based on investments.
For service enterprise:
Micro -: less than Rs. 10, 00,000
Small -: less than Rs. 20,000,000
Medium -: less than Rs. 50,000,000
For manufacturing enterprise:
Micro -: Rs. 2,500,000
Small -: less than Rs. 50,000,000
Medium -: less than Rs. 100,000,000
What are the benefits the MSME units can reap after MSME or Udhyog Aadhar Registration?
The MSME registration is mandatory by the Government after 1st July 2020, and it will help you reap several benefits from the Government.
- MSME registration or Udhyog Aadhar Registration offers you enjoy several benefits from the central Government to grow smoothly
- The MSME Registration enables the service or manufacturing units to get bank loans at cheaper interest rates. The interest rate of interest on a loan can be around 1% to 1.5% less than regular interest rates for loans.
- The Government of India provides several concessions and rebates. It enables them to slashes patent cost and capitalization cost for setting up the industry.
- They offer various kinds of tax rebates.
- Provide instant finance for working capital without collateral security
- capital subsidy on plant and machinery,
- subsidy on electricity charges, stamp duty exemptions on organization documents,
- Reimbursement of fees to participate in international exhibitions, trade fairs, conferences, and seminars are also reimbursed.
- The Government also grants exemptions and concessions for MSMEs that export goods.
- Payment recovery from clients is restricted to a specific limit, so there is less chance of bad debt for their sale.
- The Government will give first preference to businesses registered under MSME.
- The capital subsidy allowed MSMEs to act as a boost to compete with international players.
- The minimum alternate tax credit was extended to up to 15 years.
- Most government tenders are strictly open to MSME registered units on a preferential basis.
- Businesses register under MSME have to pay a one-time settlement fee.
- Subsidies are provided on electricity bills, water cess.
- The Government conducts training programs to train & encourage Micro and Small Enterprises small entrepreneurs.
- Many state governments also provide operational subsidies for day to day operations of MSMEs.
What are the documents necessary for MSME registration online or Udyog Aadhar Registration?
You will not need any paper work in the process of MSME registration. But following are the documents required to get fill the MSME form online:
1- Partnership Deed (if any)
2- Business Address Proof
3- Licences and invoice for the machinery purchase
4- Sales and purchase invoice
5- Aadhar number
6- Bank account details
What is the process for MSME Registration Online or Adhar Udyog registered?
The process of MSME Registration or Udyog Aadhar Registration online is very simple. It encourages entrepreneurs to register their businesses. This registration allows enterprises with a safe space to grow.
- The one who needs to get registered has to fill a form online through myudyogaadhar.in website or offline through the concerned zonal department as a starting process. It can be conducted by reputed consultancy services as well.
- Individual registration can be done if a person wants to register for more than one industry.
- After the details are filled and correctly uploaded to the portal, the entity will get the registration number.