Criteria for MSME Registration
MSME Registration is based on the composite criteria of Investment in Equipment/ Plant & machinery and Annual turnover
Composite Criteria: Investment and Annual Turnover
Manufacturing & Services
Investment < Rs 1 cr
Turnover < Rs 5 cr
Investment < Rs 10 cr
Turnover < Rs 50 cr
Investment < Rs 20 cr
Turnover < Rs 100 cr
Documents Required for MSME Registration
The following documents are required for MSME registration:
1. BUSINESS ADDRESS PROOF:
If the premise is self –owned.
If the premise is rented
Submit Allotment letter, possession letter, lease deed, or receipt of property tax for MSME registration
Rent receipt and no-objection certificate from the landlord is required for MSME registration
If there is a municipal license on behalf of a company or on behalf of a business owner, partner, or agent, no other certificate of ownership is required.
Any utility bill or record that shows ownership of the landlord shall be submitted.
2.COPIES OF SALES BILL AND PURCHASE BILL:
For MSME registration, Business is required to submit a copy of the sales bill related to each end product that it will supply. Also, for each raw material that it will purchase, a purchase bill has to be submitted.
3. PARTNERSHIP DEED/ MOA & AOA:
If the business is a Partnership firm
If the business is a Company
Submit the Partnership deed
Copy of Memorandum of Association(MOA), Article of Association( AOA) and Certificate of Incorporation( COI) is to be submitted
When the partnership firm is approved, it must also give registration certificates.
Copy of resolution passed in general meeting. A copy of the board resolution shall be sent authorizing a director to sign the MSME submission.
4. COPY OF Acquired LICENSES AND BILLS OF MACHINERY
The applicant must, in a few cases, submit a copy of an industrial license to be obtained by submitting a request to Govt. of India. Furthermore, all bills and receipts relating to the procurement and installation of the plant and equipment must be kept secure and must be submitted on request.
MSME Registration Process
Businesses who want to register as MSME will need to register their business on the “Udyog Aadhar Memorandum (UAM) portal.” The registration process is free for every user.
MSME Registration can be done offline as well as online.
Following are the steps for online MSME registration:
Step 1. Visit UAM portal and keep your Aadhar card handy (Mandatory). click here
Step 2. Enter your 12 digit Aadhar number and name of the entrepreneur
In the case of a proprietorship company, the Aadhaar number shall be of the proprietor’s, in the case of a partnership firm, the managing partner, and a Hindu Undivided Family (HUF), a Karta.
In the case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organization or its authorized signatory shall provide its GSTIN and PAN and its Aadhaar number.
Step 3. Then, click on ‘’Validate & Generate OTP’ and enter the OTP for verification. You’ll need to fill out the online registration form until verification is completed.
Step 4. Fill the following details:
- Name of the business owner
- Category of the applicant – General, SC, ST, OBC, Others
- PAN details
- Complete postal address of the business– district, pin-code, state, email address and mobile number
- Previous registration details of your business
- The commencement date of business
- Bank Account Details, along with the IFSC code
- Type of Organisation – “Services” or “Manufacturing”
- Total number of workers employed
- The total amount of money (in lakhs) invested in business/enterprise
- Annual turnover of the business
- National Industrial Classification (NIC) Code
- Details of District Industries Centre (DIC)
Step 5. Then, click on submit to generate OTP, which will be sent to the email id mentioned in the form for registration.
Step 6. Enter Aadhaar OTP received on mobile for the second time and click on ‘Final Submit.’
Step 7. You will receive an acknowledgment number via email once the registration is complete
Step 8. Once your details are verified, the UAM number is generated for your business. You can use this MSME Registration number for the various benefit of MSME’s.
Benefits of MSME Registration
MSME Registration is not mandatory. If you want to register, your company will enjoy a scheme of excise exemption from direct taxes, take advantage of special programs created for MSMEs by banks, and many more.
Registered companies with an MSME certificate would also benefit from various government departments, including electricity.
The list below are some of the benefits of MSME Registration to companies:
- Lowest interest rates on bank loans
- Avail tax rebates customized for MSMEs credit for Alternate Minimum Tax (MAT): MAT credit allowed to be carried forward for 15 years instead of 10 years
- Very easily accessible credit for MSMEs
- Reimbursement of ISO Certification
- Avail special rebates and concessions on patents and industry set-ups
- One time settlement fee for the amount unpaid
- Government preference to MSME’s
- Concession in electricity bills
- Get credit guarantee schemes from the Government.
- Special consideration on International Trade fairs
- Bar code registration subsidy
- Support from your state government
Schemes Launched by the Government for MSME
Some of the schemes are as follows:
- Udyog Aadhaar memorandum scheme – Through this program, MSMEs can get loans for MSMEs, credit, and government subsidies quickly available.
- Women entrepreneurship – The scheme was launched to support and inspire women who wanted to start their own company or build something. The Government provides financial aid, counseling, and training to women over here to help them run their company better.
- Zero defect zero effect – The Government here ensures that products produced by MSMEs adhere to a certain quality and are not returned to India. The program is also known as the ZED, helps small and medium-sized businesses receive rebates and discounts for their exported goods.
- Quality control practices and quality development tools – This scheme aims to draw awareness of quality in the products made by MSMEs. It encourages healthy competition among various establishments to ensure better commodity production.
- Grievance management program – This scheme was launched to track and provide for complaints and feedback from the company and MSME owners.
- Credit linked capital subsidy scheme – Registered microfinance companies may use funds to replace their old equipment and update their business with new technologies. MSMEs should contact banks directly to benefit from this scheme.