MSME REGISTRATION

What is MSME Registration?

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy.
Seeing its importance, the government of India provides several benefits to these enterprises. However, for that, they have to register under the MSMED act.

Revised MSME Classification under the Aatmanirbhar Bharat Abhiyan (ABA)

Revised MSME Classification
Criteria	Micro	Small	Medium
Investment & Annual Turnover	< Rs.1 crore & < Rs.5 crore	< Rs.10 crore & < Rs.50 crore	< Rs.50 crore & < Rs.250 crore

Advantages of MSME Registration:

1. Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around 1 to 1.5% i.e. much lower than interest on regular loans.
2. There are various tax rebates offered to MSME.
3. It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10
4. There are many government tenders which are only open to the MSME Industries.
5. They get easy access to credit.
6. Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
7. Business registered under MSME are given higher preference for government license and certification.
8. There is a One Time Settlement Fee for non-paid amounts of MSME.

Procedure for MSME Registration:

1. To do the registration the small and medium scale industry owner has to fill a single form which is Form MSME-1.
2. If a person wants to do registration for more than one industry then also he/she can do individual registration.
3. In this, the person can provide self-certified certificates.
4. There are no registration fees required for this process.
5. Once the detail-filled and upload you would be getting the registration number and MSME Certificate.

Documents/ Information required for filing Form MEME-1:

1. Aadhar Card
2. PAN Card

3. Type of organisation
4. Business address
5. Industry / Enterprise Name
6. Personal Mobile No and Email Id
7. Business activity details
8. Number of employees
9. Investment amount in plant & machinery
10. Bank A/c details:
i) Bank A/c Number
ii) IFSC Code