Phoenix Auditing

MSME Registration

What is MSME?

MSME stands for the micro small and medium enterprises.

Advantages

  • The government provides special benefits to the small businesses in the form of subsidies and incentives.
  • With MSME Registration, banks also provide the loans at lower rate of interests, as these MSME play an important role in the country’s economic growth.

1.     What are MSME Enterprises?

2.     Why MSME Registration is Important for Small-Scale Industries?

3.     What is the eligibility Criterion for MSME Registration

4.     What is the Process of MSME Registration in India

5.     What are the details required for MSME Registration in India?

6.     What are the few Benefits of MSME Registration?

7.     What are the MSME schemes launched by Government?

1. What are MSME Enterprises?

If incase of manufacturing sector it can be categorized on the basis of amount invested in plant and machinery –

  • Micro enterprises– Entities investing up to an amount of ₹ 25 lakhs in plant and machinery
  • Small enterprises– Entities investing between ₹ 25 lakhs and ₹ 5 crores in plant and machinery
  • Medium enterprises– Entities investing between ₹ 5 crores and ₹ 10 crores in plant and machinery

If incase of service sector it can be categorized on the basis of amount invested in plant and machinery –

  • Micro enterprises– Entities investing up to an amount of ₹ 10 lakhs
  • Small enterprises– Entities investing more than ₹ 10 lakhs but less than ₹ 2 crores
  • Medium enterprises– Entities investing ₹ 2 crores but less than ₹ 5 crores

2. Why MSME Registration is Important for Small-Scale Industries?

  • To avail the benefits such as incentives, subsidies and bank loans
  • The government of India will help you in the promotion of your enterprise
  • It brings clarity and credibility in the functioning of the organization.

3. What is the eligibility criterion for MSME Registration?

For MSME registration your enterprise must fulfill the point(s) mentioned below.

  • There has to be only one proprietor of the company that is you are the sole owner of the business.
  • Be a part of Hindu Undivided family or belong to it.
  • Your enterprise is a one person company.
  • You work as or have a partnership firm with another party in an association.
  • You have a limited liability partnership
  • You run a private limited company
  • You produce material from your production company
  • You are associated with other people regarding work
  • There is a co-operative society under your name or any other undertaking

4. What is the Process of MSME Registration in India?

  • You can apply for MSME registration process by visiting the official website of Udyog Aadhaar Registration https://online-udyogaadhaar.com/.
  • Although MSME registration is not must, before starting your enterprise, but it is always helpful to take advantage of benefits provided under the MSME

5. What are the details required for MSME Registration in India?

In the application form, you need to mention the few details regarding your company and fill the following details:-

  1. Aadhar number of the applicant
  2. Name, gender, PAN number, email id and mobile number of the applicant.
  3. PAN, location, and address of the organization.
  4. A number of employees and the date, you are planning to start your business.
  5. Bank account number and IFSC code
  6. The basic business activity of the enterprise
  7. NIC 2 digit code
  8. Investment in plant and machinery/equipment

6. What are the few Benefits of MSME Registration?

  • Accessibility of bank loans

Loans can be availed from Banks easily, that too collateral-free loans do not have to pledge property with banks.

  • The opening of Bank Account

Once you have gotten your MSME registration certificate, it will serve as a legal entity proof of the business; which will help you in the opening of a bank account.

  • Tax Rebate

If your company is registered under MSME, then you are likely to get the benefit of refund imposed on goods and services.

  • Compensation under barcode registration

If you run a manufacturing unit, then barcode registration is required. Under which you can avail the benefit of subsidy.

7. What are the MSME schemes launched by Government?

  • Udyog Aadhaar memorandum
  • Zero Defect Zero Effect
  • Quality Management Standards & Quality technology Tools
  • Grievance Monitoring System
  • Incubation
  • Credit Linked Capital Subsidy Scheme
  • Women Entrepreneurship