Micro, Small and Medium Enterprises or MSME is a backbone of the economic growth in many developed or developing countries in the world. It often called “the engine of growth”...
M any medium and small scale industries are nowadays opting for MSME registration certificate. The sole reason why MSME (Micro Small Medium Enterprises) registration has been in the limelight is that it offers several benefits to industries with the MSME enrolment. Besides, the government has introduced several schemes under MSME which provides a myriad of advantages to the small scale industries (SSI).
However, acquiring MSME registration is not mandatory, experts still recommend micro, small, and medium enterprises to get the MSME certificate as soon as possible and enjoy several subsidies and benefits under the MSME scheme. Further, before moving on to the process of obtaining registration certificate, let us understand its pre-requisites.
Latest update on MSME from Budget 2019
In the latest Interim Budget, Mr. Piyush Goyal announced that the Government can now give 2% interest subvention to all the GST registered MSMEs under the MSME Credit Scheme.
Reasons why you should obtain MSME registration certificate in India
If you obtain MSME/SSI registration, you become eligible for availing various benefits under Central and Government schemes. However, bank loans and government subsidies are the elementary benefits of SSI or MSME registration. Other major benefits are as follows:
- Easy to avail bank loans
- Hassle-free bank account opening
- Octroi benefits
- Participation in International Trade Fairs
- Exemptions under Income Tax
- Waiving off stamp duty and registration charges
- NSIC and Credit Rating
- Reimbursement under the Bar Code Registration
- Protection in case of delay
- Industrial Promotion Subsidy
- Bank loans at lower interest rates
- ISO Certification Benefit
- Capital subsidy
- Subsidy on the Patent Registration
- Preference in the government tenders
What are the eligibility criteria for acquiring a certification of MSME registration?
Anybody can apply for MSME registration who satisfies the following conditions as below:
- In the case, the applicant belongs to the HUF (Hindu Undivided Family);
- If the individual is a sole proprietor (excluding the business owner);
- In cases, an entity works as a partnership or has a partnership firm with another party in association;
- If you are running a One Person Company (OPC);
- The entity has co-operative societies;
- In the case, the applicant runs a private limited company;
- If you have a production company producing materials;
- Any other undertaking.
Documents required for MSME registration in India
In order to obtain MSME registration, you are required to submit the following documents to the concerned body:
- Identity proof such as PAN card of all the directors or partners or proprietor
- Address proof such as Aadhaar card or Voter Card or passport or Driving license, etc. of all the directors or partners or proprietor
- Business address proof such as lease agreement or possession letter or allotment letter or property tax receipt
- If the office premise is on rent, then NOC (No-Objection Certificate) from the landlord
- Utility bills not older than two months
- Copy of purchase bill for every raw material purchased
- Copy of sale bill for every end product
- A copy of Industrial license under the Industrial Development and Regulation Act, 1951
- Memorandum of Association (MOA) and Articles of Association (AOA) of the company. Further, Certificate of Incorporation (COI), in the case, the company has Private Company Registration.
- Copy of partnership deed in the case you have a partnership firm
- Bank account statement
- Purchase bill of machinery installed
- An affidavit on Rs. 10/- non-judicial stamp paper. It should have the attestation of Notary Public providing the status of power requirement, machinery installed, etc.
- Bills regarding the installation of purchasing of plant and machinery.
Process for obtaining MSME Registration Certificate in India
MSME registration process is pretty simple. Even, if you want, you can opt for MSME registration online. Hence, follow the below-enlisted process to get the MSME registration certificate without any hassle.
- For MSME registration, you need to file a form either online or offline. For online form, you can visit on the official website of Udyog Aadhaar and login as an entrepreneur.
- In the application, you need to fill the essential details of the industry you want to operate.
- Along with, you must provide the mandatory documents such as the Aadhaar number, name of the industry, address, bank details, and other common details.
- Further, you need to provide some self-certified certificates.
- Once you have filled up the form completely and attached all the documents, wait for 2-3 working days. However, Swarit Advisors can help you get the MSME registration certificate before the aforesaid time period.
- Once you have received the MSME registration number, you can go for MSME registration certificate download from the official website of Udyog Aadhaar.
MSME Registration Certificate Sample Format
Below you can find the sample of how the MSME certificate appears to be.
It’s pretty much clear from the above discussion that MSME registration certificate holds of extreme importance to all the small scale industries. Also, the registration process is quite simple. Anybody willing to obtain the MSME registration can directly apply online on the Udyog Aadhaar website. There, he/she can fill the form along with the necessary documents attachment. Moreover, within 2-3 working days, the applicant will receive the registration number and can download the registration certificate.
However, if you are willing to go for MSME/SSI registration and aren’t able to do it by yourself, contact Swarit Advisors. We will help you get the registration certificate in just 1-3 working documents. If you have any query regarding MSME or SSI, leave a comment below.