Micro, Small & Medium Enterprises is an apex organization responsible for the formulation and administration of rules and regulations to micro, small and medium enterprises in India.
MSMEs are categorically divided into two classes:
Manufacturing Enterprises - Enterprises engaged in the manufacturing or production of goods about an industry. A microenterprise does not exceed twenty-five lakhs, a small will be more than 25 lakhs but less than 5 crores whereas a medium is more than 5 crores but do not exceed ten crore rupees.
Services Enterprises – Enterprises engaged in providing or rendering services by any channel. An enterprise which does not exceed ten lakhs is micro, a small enterprise will remain in the category if it is more than 10 lakhs but less than two cores. A small enterprise becomes a large enterprise if it exceeds two crores and does not go beyond 5 crores.
Why MSME is important for businesses to get ?
- Bank Loans with rebated rates
- Tax Rebates to MSME.
- Allows credit for Minimum Alternate Tax (MAT) up to 15 years instead of 10 years
- Invites government tenders.
- Increases credibility in the market.
- It provides rebates and concessionswhile commencing the business.
- Increases preference for government license and certification.
Steps to register for MSME are as follows:
- To do the registration the small and medium scale industry owner has to fill only one form which can be done online as well as offline.
- If a person wants to do registration for more than one industry it is easily doable by individual registration.
- To register one has to fill a single form that is available at the website MSME.
- The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details, and some mandatory and general information.
- There is no registration fee required for this process.
- Once the detail-filled and uploading is done, you would be getting the registration number.
Documents Required for MSME Registration
- Personal Aadhar number
- Purchase and Sale Bill
- Business Address Proof
- Partnership Deed/ MOA and AOA