If you came looking for Documents required for MSME Registration, congratulate yourself for landing in the right place. Any business owner or someone planning to start is constantly faced with the most notorious deterrents: Government red tapes. Simply speaking, if you've never done the rounds of government offices, it can feel like an excessively daunting task for a relatively modest reward. However, we're here to ease some of the perceived burdens off your shoulders by explaining all you need to know about Msme registration from Start to Finish.
To legally operate your business in India and ensure ease of acquiring loans, you must register your business. MSME registration is divided into two categories or enterprise types: Manufacturing enterprises and Service enterprises. You needn't even visit government offices every other day since the process is completed almost entirely online.
What is an MSME?
MSME is the most common category of business registered worldwide. It stands for Micro, Small and Medium enterprises under the Micro, Small, and Medium Enterprises Development Act, 2006. They are classified into two types in India:
- Manufacturing Enterprise
- Service Enterprise
As the most common type of business operation, MSMEs operations have played a significant part in India's success story. They are a dynamic feature responsible for the manufacturing and maintenance of various goods and services in India. They are the largest exporters and importers and are easier to manage due to their smaller sizes.
They've played a significant role in employing the more neglected populations in the country. Their concentration in smaller cities and places with lower rates of industrialisation has allowed them space for growth. Low investment requirements, lower carbon footprints, and overall manageability are just some of the advantages that SMEs and MSMEs come with. With any small business, financial accounting is a significant concern. OkCredit is a financial accounting service that offers various business-specific services that allow you to focus on your growth while OkCredit handles all your monetary woes.
Starting a New MSME registration process
Following are the steps to start a new registration process online:
- Visit the official MSME registration portal here and fill out the registration form by entering all the correct details.
2. Complete the form and submit all the required documents (covered in the article). Keep the number safe for future reference.
3. Next up, you have to pay the registration fee. After successful completion of payment, your details will be up for review.
4. If the review is successful, your business will be registered by the Ministry of MSME in 1-2 working days.
5. The certificate of your registration will be delivered via email to your registered email address.
The process of registering and managing your business as an MSME has been streamlined by the Ministry of MSME, taking the whole process online.
Eligibility criteria for MSME Registration
Merged criteria for Manufacturing and Service enterprises
Manufacturing and Service enterprises
Turnover of < Rs 5 crores and Investment of < Rs 1 crore
Turnover of < Rs 50 crores and Investment of < Rs 10 crores
Turnover of < Rs 250 crores and Investment < Rs 50 crores
Manufacturing enterprise: These are enterprises engaged in manufacturing any equipment or machinery required by any industry pertaining to the Industries ( Development and Regulation) Act, 1951.
Service enterprise: These are enterprises involved in providing services to industries.
Documents required for MSME Registration
Although the list might seem extensive, most individuals possess several documents present in the list as they are essential for acquiring various services. Apart from those, we shall be elucidating the documents we feel are less common and are pertinent to this particular case.
- KYC documents may include a PAN card, Aadhar card, Driving license, or utility bills. This is for the individuals registering the company under their name.
- Business PAN card.
- Proof of Income
- Certificate of Business Establishment
- Bank details and Credit scores
- Bank statement of last six months
- Rent or Lease agreement (if required)
- NOC from the landlord (if required)
- Any other documents of the process
These documents aren't challenging to gain possession of and to present as required. However, if you're serious about keeping your business afloat and moving forward, these should be of primary concern to you and your business partners.
Now let's explore the various components of the Application form that one is required to fill up on the registration site.
- Aadhar Number (presupposing your possession of an Aadhar Card)
- Name of Entrepreneur as per Aadhar Card
- Social Category (General, OBC, SC/ST). There are certain advantages associated with certain social categories that include concessions and leeways. They also include loan opportunities.
- Gender of the Entrepreneur. Female entrepreneurs can take advantage of various government schemes and programs.
- Physically Handicapped persons are also liable for certain advantages.
- Name of your enterprise as well as the type of enterprise. You have two options: Manufacturing options Manufacturing, or Service enterprise.
- Type of Organisation and ownership (Limited liability partnership, Proprietorship, Private or Public Limited Company, Partnership firm, Co-operative society, Hindu undivided family, Self Help group, society or trust).
- Business PAN card
- Location/Address of Plant. If renting, remember to acquire an agreement and NOC from your landlord, as they'll be a requirement for the next part of the application form.
- Various location-based details like Country, State, District, City or Town, Tehsil, Village, and PIN Code.
- Office Address. It can be the same as the location of the business. You must remember the business location where you conduct your business, and it could be a hassle to receive various intimations while work is going on. So it's usually a good idea to keep a separate office address for your business.
- Mobile Number/Email Id. It's a good practice to have a separate business number and email id. The owner may use their accounts, but their business affairs would be more streamlined if they used a dedicated phone number and email id for their business.
- Bank Account Number and IFSC code.
- Business Activity of the enterprise.
- NIC 2 digit code - choosing a primary activity
- Additional details about the enterprise
- Number of staff
- Operational Investment in Machinery or any other business development investments.
Benefits of having a registered MSME
Apart from the obvious legal advantages and recognition, here are some more benefits that may persuade you to register your business:
- Government access aided low-interest-rate business loans that would have been previously inaccessible.
- Legal status as MSME would allow you to bid for and acquire government tenders.
- Having gone through the first hoop of registering your business, it becomes relatively easier to get various approvals, licenses, and concessions that would have been a hassle if you hadn't been registered as an MSME.
- Under various government schemes, you'll receive tariff subsidies as well as tax and capital subsidies. You'll also be eligible to receive compensation on ISO certification expenditure.
- Exemption from Direct Tax Laws as well as a 15% import subsidy on machinery.
To possess knowledge of all the Documents required for MSME Registration is of paramount importance for any small to medium-sized business. The various benefits aside, it allows peace of mind to the business owner and will enable them to focus more on their business's growth rather than the amount of red tape they have to go through.
|We hope you liked our article. To know more details about MSMEs, you can visit these linked articles.|
|MSME Registration||Types of MSME Registration||MSME Registration Benefits|
|MSME Loan||MSME vs NSIC||MSME vs SME|
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Q. Is an Aadhar number mandatory for MSME Registration?
Ans: Yes. You won't be able to complete your registration without one.
Q. Are MSME borrowers eligible for collateral-free loans from financial institutions?
Ans: Yes. MSME borrowers may acquire collateral-free loans from banks and other financial institutions.
Q. What are some MSME helpline numbers?
Ans: For MSME: 011-23063288 / 011-23063643
For Udyam: 011-23061500 or 011-23061546