MSME Registration in India
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Online MSME Registration
Online Registration of a MSME is now easy with Tax Robo's simple registration process. Register today!
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What is MSME?
MSME registration in India refers to the process of registering a micro, small, or medium enterprise under the MSMED Act, 2006. MSMED stands for Micro, Small, and Medium Enterprises Development Act. This registration is crucial for businesses to avail themselves of various benefits provided by the government.
The MSME companies bring about 45% of industrial jobs offered in India, about 50% of total exports, and nearly 95% of total industrial units in the country.
The Indian economy greatly depends on these small industries as they form the backbone of the economy, providing jobs and a means of survival to the underprivileged.
MSME registration is a voluntary registration provided by the Government of India for micro, small, and medium-sized enterprises. The classification of an enterprise as micro, small, or medium is based on the investment in plant and machinery or equipment for manufacturing units and on investment in equipment for service enterprises.
Why MSME Registration?
- Government Benefits: MSMEs enjoy various benefits, including financial assistance, subsidies, and schemes launched by the government.
- Credit Facilities: MSME registration makes businesses eligible for lower interest rates on loans and easier access to credit from banks and financial institutions.
- Subsidies on Patent Registration: The government provides subsidies on patent registration and reimbursement for the cost of obtaining the patent.
- Preference in Government Tenders: MSMEs get preference in the allocation of government tenders.
- Concessions in Electricity Bills: MSMEs may also avail concessions in electricity bills in certain states.
- Ease of obtaining Licenses and Permits: MSME registration simplifies the process of obtaining licenses and permits required for running a business.
Important Legal Registration Required
MSME Registration Process
It can be done online by applying on the Government portal.
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Online Application: The registration process is typically done online through the Udyam Registration portal (https://udyamregistration.gov.in/).
✓ Document Submission: Necessary documents such as Aadhaar card, PAN card, business address proof, and other relevant documents need to be submitted along with the application.
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Verification: Once the application is submitted, it undergoes verification. If all details are found to be in order, the MSME registration certificate is issued.
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Registration Certificate: Upon successful verification, the MSME registration certificate containing a unique Udyam Registration Number (URN) is issued.
If that sounds too much of trouble, Tax Robo is always there to assist you.
Let us help you register your small company as an MSME recognized by the Government of India.
Advantage Of MSME Registration
✓ Lower interest rates on loans
✓ Excise exemption scheme
✓ Exemption under Direct Tax Laws
✓ Credit guarantee scheme
✓ Reservation policies to promote small scale industries
✓ Benefits under various state government schemes
✓ Subsidies for ISO certification
✓ Preference in government tenders
✓ Reimbursement of expenses for obtaining patents
MSME Schemes 2024
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Credit Linked Capital Subsidy Scheme (CLCSS): Under this scheme, MSMEs are provided with upfront capital subsidy for upgrading technology and modernizing their equipment. The scheme aims to enhance the competitiveness of MSMEs by improving their productivity and quality.
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Pradhan Mantri Mudra Yojana (PMMY): PMMY provides financial assistance to MSMEs through loans from various financial institutions such as banks, NBFCs, and MFIs. The loans are categorized into three schemes: Shishu, Kishor, and Tarun, based on the stage of growth and funding requirements of the enterprises.
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Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE): CGTMSE provides collateral-free credit facilities to MSMEs by guaranteeing a portion of the loans extended by banks and financial institutions. This scheme enables MSMEs to access credit without the need for collateral or third-party guarantees.
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Technology Upgradation Fund Scheme (TUFS): TUFS provides financial assistance to textile and jute industries for upgrading their technology and machinery. The scheme aims to modernize the textile sector and enhance its competitiveness in the global market.
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Scheme for Promotion of Innovation, Rural Industry, and Entrepreneurship (ASPIRE): ASPIRE promotes innovation and entrepreneurship in rural areas by providing financial support, skill development training, and incubation facilities to aspiring entrepreneurs. The scheme focuses on sectors such as agro-processing, rural tourism, and handicrafts.
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Stand-Up India Scheme: This scheme aims to promote entrepreneurship among women, SC/ST, and economically backward communities by providing bank loans between Rs. 10 lakhs to Rs. 1 crore for setting up greenfield enterprises. The scheme encourages inclusive growth and economic empowerment of marginalized sections of society.
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Pradhan Mantri Employment Generation Programme (PMEGP): PMEGP provides financial assistance for setting up micro-enterprises in the manufacturing and service sectors. The scheme offers subsidy assistance for project costs and aims to generate employment opportunities in rural and urban areas.
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National Manufacturing Competitiveness Programme (NMCP): NMCP supports MSMEs in enhancing their competitiveness through various components such as Lean Manufacturing, Design Clinics, Technology and Quality Upgradation, Marketing Assistance, and Entrepreneurial Development Programs (EDPs).
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Skill Development Initiatives: The government has launched various skill development initiatives such as Skill India, National Skill Development Corporation (NSDC), and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to provide training and skill development programs for MSMEs, thereby enhancing their productivity and competitiveness.
MSME Classification
MICRO
Investment < Rs.1 Cr and Turnover Rs.5 Cr.
SMALL
Investment Rs.10 Cr and Turnover < Rs.50 Cr.
MEDIUM
Investment < Rs.50 Cr and Turnover < Rs.100 Cr.
MSME Registration Packages
Basic Package
₹999 .00
* All Exclusive
- MSME Registration
- Udyog Aadhaar
Family Auditor
₹2999 .00
* All Exclusive
- MSME Registration
- GST Registration
- Free GST Return filing for 1 Month
- Free Bank Account Opening
- Free Experts Consulting
Key Benefits of MSME Registration for Businesses in India
- Businesses can avail of cheaper Bank loans with lower interest rates (around 1 to 1.5 percent) in comparison to regular loans
- Tax rebate availability
- Unlike the regular Minimum Alternate Tax (MAT) duration of 10 years for credit, MSMEs are allowed to carry forward this limit to 15 years for credit against MAT
- Special Government tenders catering to MSMEs mainly
- Easy credit accessibility Low-cost for industry set-up, patents, and so no due to special Tax rebates and other concessions
- High preference from the Government in terms of licensing and certification
- One-time settlement option for the unpaid amount
Documents Required Registration of MSME Registration
ID Proof
Scanned copy of PAN Card, Voter ID, Passport , Driving License
Registered Office Proof
No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property) / Registry Proof or House Tax Receipt (in case of owned property)
Address Proof
Latest Bank statement/ Utility bill in the name of director which should not be older than two months
Photo
Latest passport size photograph
Compliance After Registration of MSME Registration
Statutory Obligations
✓ File GST return every month without delay
✓ PF & ESI return filing
✓ TDS Payments & Return filings
✓ Advance Tax payments
✓ File Income Tax return by every year before due date
Compliances
✓ GST registration
✓ PF & ESI Registration if applicable
✓ Profession Tax registration
✓ Import & Export Code registration
✓ STPI Registration / SEZ registration
✓ Secretarial compliance required for passing resolutions, Change in Management, entering contracts, loan obligations etc
Accounts & Operations
✓ Open a Bank account with one Private Bank and one scheduled Bank
✓ Get one accounting software with GST facility
Performance
✓ Review Financial Products performance by every 3 months
✓ Compare the budget amount with actual Financial Products results