MSME Registration

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required.

Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration under the MSMED Act. Though the MSME registration is not statutory, it is beneficial for business at it provides a range of benefits such as eligibility for lower rates of interest, excise exemption scheme, tax subsidies, power tariff subsidies, capital investment subsidies and other support. CivilIndia can help your business obtain MSME Registration to avail a host of benefits.

MSME Process

Step 1: MSME Registration

You can obtian MSME Regisration in 10 to 20 days, subject to Government processing time.

Step 2: Application Preparation

A Financial Expert will prepare your MSME Application along with the necessary supporting documents that needs to be submitted for MSME Regisration.

Step 3: Application Processing

Once the application is prepared and submitted, the concerned MSME Office will process the application and may request for more information or documents (if required).

Step 4: MSME Registration

While processing the application, if required a Financial Expert will help respond to any query or request for document and obtain MSME Registration.

Frequently Ask Questions (FAQs)

S.No.Query
1What is MSME Registration?
MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits such as interest rate concessions, tax benefits and access to a range of subsidies and schemes, aimed at developing MSMEs.
2Who can obtain MSME Registration?
MSME Registration can be obtained by business in the manufacturing or service sector. To be classified as a MSME, Enterprises in the Manufacturing sector need to have less than Rs.10 crores of investment in plant & machinery; service Enterprises must have an investment of less than Rs.5 crores of investment in plant & machinery.
3What is a Micro Enterprise under the MSMED Act?
A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.
4What is a Small Enterprise under the MSMED Act?
A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.
5What is a Medium Enterprise under the MSMED Act?
A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.
6What are some of the benefits of MSME Registration?
MSME Registration has a range of benefits implemented as subsidies, schemes and incentives. Enterprises registered with the MSMED Act enjoy interest rate concession and their borrowing is classified under Priority Sector Lending. Enterprises registered with the MSME act are also allowed to avail a number of subsidies and schemes floated by the State and Central Government. Some of them include, subsidy for ISO registration, subsidy for obtaining International patents, subsidy for participating in tradeshow, subsidy for implementing barcode on Products, etc.,
7What are the documents required for MSME registration?
To obtain MSME registration, proof of address of business, proof of identity of the promoters and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] is required. Additional documents may be required based on the State in which the MSME Registration is sought.
8How long does it take to obtain MSME registration?
MSME Registration process is state specific. Therefore based on the state, the MSME Registration processing time differs. MSME Registration can typically be obtained in 10 to 15 working days.
9What is the validity of a MSME Registration?
MSME Registration is first provided as a Provisional Registration Certificate with a validity of 5 years. Once, the unit has commenced production, a Permanent Registration Certificate is issued which is valid for lifetime of the entity.
10What if my Enterprises crosses the investment threshold of the MSME Act,?
If the business grows and investments more than Rs.10 crores in plant and machinery in case of manufacturing entity and more than Rs.5 crores in plant and machinery in case of service entity, the enterprise should apply for de-registration.

Highlights Of MSME Registration

MSME Registration:

MSME Registration is an optional Registration under the MSMED Act that provides Micro, Small and Medium sized enterprises with a host of benefits and access to subsidies and schemes.

Registration Criteria:

To be classified as a MSME, Enterprises in the Manufacturing sector need to have less than Rs.10 crores of investment in plant & machinery; service Enterprises must have an investment of less than Rs.5 crores of investment in plant & machinery.

Micro Enterprises:

A Micro Enterprise in the manufacturing sector is an enterprise with less than Rs. 25 lakhs of investment in plant & machinery. A Micro Enterprise in the service sector is an enterprise with less than Rs. 10 lakhs of investment in plant & machinery.

Small Enterprise:

A Small Enterprise in the manufacturing sector is an enterprise with more than Rs. 25 lakhs but not exceeding Rs. 5 crores of investment in plant & machinery. A Small Enterprise in the service sector is an enterprise with more than Rs. 10 lakhs but not exceeding Rs. 2 crores of investment in plant & machinery.

Medium Enterprise:

A Medium Enterprise in the manufacturing sector is an enterprise with more than Rs. 5 crores but not exceeding Rs. 10 crores of investment in plant & machinery. A Medium Enterprise in the service sector is an enterprise with more than Rs. 2 crores but not exceeding Rs. 5 crores of investment in plant & machinery.

Validity:

Two types of registration is done in all States. First a provisional registration certificate is given. And after commencement of production, a permanent registration certificate is given.PRC is normally valid for 5 years and permanent registration is given in perpetuity.

Key Terms:

  • MSME Process
  • ,
  • MSME Registration

Related Article

Trademark Registration

A trademark is a visual symbol, which may be a word, name, device, label or numerals used by a business […]

Business

India is the next big business flashpoint after China. Why? The reason is because of their rapidly growing economy and […]

Co-Operative Society Registration

It is a voluntary association of persons who work together to promote their economic interest. It works on the principle […]

MSME Registration

MSME stands for micro, small and medium enterprises and any enterprise that falls under any of these three categories. MSME […]

IF YOU FIND SOME HELP CONSIDER CONTRIBUTING BY SHARING CONTENT OF OUR CHANNEL

लोमड़ी और कौआ – Lomdi aur Kauwa

घोंसला बना रहेगा | Ghosla Bana Rahega

बिल्ली के गले में घंटी | Billi ke gale mein ghanti | Moral Stories | Panchtantra Ki Kahaniyan

भारत ऑपरेटिंग सिस्टम (BOSS) को कैसे इनस्टॉल करें

Deploy WordPress with MySQL & phpMyAdmin in Docker | WordPress Stack Deployment with Docker Compose

Hindi Animated Story – Aadha Rajkumar – Half Prince | आधा राजकुमार

Hindi Animated Story – Kachua aur Khargosh | Rabbit and Tortoise | कछुआ और खरगोश

Rabbit and Tortoise | खरगोश और कछुआ