MSME Registration Process

1. MSME Registration What is MSME Registration in India? MSME is termed as Micro, Small and Medium Enterprise and also include any other category of business which falls under. MSME enterprises are becoming a prime factor for developing countries to grow and helps to improve economic stability, promoting equitable development for all. The government of India is also supporting such enterprises by providing various aid such as subsidies, schemes, and incentives to promote MSME. For availing such benefit from Central or State government, the enterprise needs to get registered under MSMED Act. Micro, Small and Medium enterprise whether a manufacturing or service sector needs to get registered under MSMED Act. Registration under MSMED is not compulsory, but to avail benefits for business, one should register it. Definitions of Enterprises engaged in providing services:  Micro Enterprise: An enterprise where the investment does not exceed Rs. 10 Lakhs.  Small Enterprise: An enterprise where the investment is more than Rs.10 Lakhs but does not exceed Rs. 2 Crores.  Medium Enterprise: An enterprise where the investment is more than Rs. 2 Crores but does not exceed Rs. 5 Crores Definitions of Enterprises engaged in providing Manufacturing:  Micro Enterprise: An enterprise where the investment does not exceed Rs. 25 Lakhs.  Small Enterprise: An enterprise where the investment is more than Rs. 25Lakhs but does not exceed Rs. 5 Crores.  Medium Enterprise: An enterprise where the investment is more than Rs. 5 Crores but does not exceed Rs. 10 Crores However, as per the Press Release of 07the February, 2018, Section 7 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 will accordingly be amended to define units producing goods and rendering services in terms of annual turnover are as follows: A micro enterprise will be defined as a unit where the annual turnover does not exceed 5 crore rupees; A small enterprise will be defined as a unit where the annual turnover is more than 5 crore rupees but does not exceed Rs 75 crore; A medium enterprise will be defined as a unit where the annual turnover is more than 75 crore rupees but does not exceed Rs 250 crore. Additionally, the Central Government may, by notification, vary turnover limits, which shall not exceed thrice the limits specified in Section 7 of the MSMED Act.

2. Presently the MSMED classifies the Micro, Small and Medium Enterprises (MSMEs) on the basis of investment in plant and machinery for manufacturing units, and investment in equipment for service enterprises. Who can apply for MSME Registration? Proprietorship firms, partnership firms, LLPs, Private Limited Company’s, and Public Limited Companies When to apply for Registration? MSME Registration can be done after the commencement of business. The date can be a past date but not a future date. Benefits under MSME Registration? Easy sanction of bank loans, Lower rates of interest, Excise exemption scheme The exemption under Direct Tax Laws, Development of specialized industrial estates, Tax subsidies, Power tariff subsidies and, Capital investment subsidies, MSME Registration Process: Registration Process is divided into two parts namely Pre-operative and post-operative. Registration before setup of unit: Depending upon the legal entity of the business whether a sole proprietor or a company, needs to submit PAN, Aadhar, Register office proof, MOA and AOA in case of company and other documents demanded by the authority. The Registration Certificate of MSME is issued for a maximum period of two years from its date of issue. The certificate is valid until the commencement of the production or for a period of two years from the date of issue, whichever is earlier.

3. Registration after the commencement of production: Once the entity is registered under MSME, the business gets various privileges during its post-operation period. The certificate is not mandatory and it can be applied once the production process starts. Conclusion The Development of Micro, Small and Medium Enterprise involves various acts and rules, among which MSMED Act is one of them. After the implementation of the Act, there have been many changes for the benefit of Micro, Small and Medium Enterprise in India. It is not compulsory to register under MSMED for every entity, however, it is beneficially to get it registered. Source url - https://enterslice.puzl.com