Micro, Small and Medium Enterprise or SSI Enterprises Registrationadmin2019-05-08T06:16:23+00:00
Micro, Small and Medium Enterprise or SSI Enterprises Registration
MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. MSME registration or SSI registration online helps businesses avail multiple government subsidies and benefits MSMED act, MSME gov.
Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI/Small Scale Industry Registration under the MSMED act, MSME gov. Although getting MSME online registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.
Legalraasta can help your business obtain MSME Registration online to avail a host of benefits. MSME online registration or SSI online registration can be done through LegalRaasta in Delhi NCR, Mumbai, Bengaluru, Chennai & all other Indian cities.
What is MSME or SSI?
There are small and medium enterprises which fall under SSI/MSME category. MSME stands for Micro, Small and Medium enterprises. Being the backbone of an economy sector, MSME enterprises acts as an engine which helps in the growth of the economy and promoting equitable development. Therefore, to support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To utilise all the benefits which are offered under MSME act, the enterprise should be registered as MSME with the concerned department.
These benefits of MSME registration include priority sector lending, power tariff subsidies, capital investment subsidies and excise and direct tax exemptions. Following are the conditions which need to be fulfilled to qualify under MSME Act.
All the manufacturing enterprises which have invested less than 10 crores in machinery and plant are allowed to be registered as MSME.
In service enterprises, the investment in plant and machinery should not be more than 5 crores.
And in near future, if your enterprise exceeds the maximum limit, then it will not sum up as MSME.
What Are The Different Types of MSMEs?
There are 3 types of MSME or SSIs which can be classified as under:
Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment.
In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores.
And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores.
Benefits of MSME / SSI Registration
There are multiple benefits of MSME / SSI registration for small businesses:
Cheaper bank loans
The rate of interest on loan offered to MSMEs is 1-1.5% lower compared to typical business loan interest.
Easy access to credit
PM Modi has introduced the Mudhra Loan scheme, which provides loans to MSME / SSI without collaterals.
Quicker approvals from state and central government bodies
Business registered under MSME are given higher preference in terms of government license and certification.
MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
Access to tenders
There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.
Frequently Asked Questions
How do you get MSME Registration?
Is SSI/MSME Registration voluntary or mandatory?
Why should I apply before commencing operations?
What documents are required for the application?
For how long is an MSME Provisional Registration Certificate (PRC) valid?
How does SSI/MSME help me get a loan from a bank?
What benefits are given to MSME by state and central government?
How is the value of plant and machinery computed for SSI registration?
What is the support available for collateral free borrowing?
What is credit rating and why is it mandatory?
In which cities does LegalRaasta provide MSME registration?
When I will get my SSI Liscense?
To do the registration the small and medium scale industry owner has to fill a single form which he can do online as well as offline.
If a person wants to do registration for more than one industry then also he/she can do individual registration.
To do the registration he/she has to fill a single form which is available at the website which is listed below.
The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details and some common information.
In this, the person can provide self-certified certificates.
There are no registration fees required for this process.
Once the detail-filled and upload you would be getting the registration number.
Benefits of MSME Registration
Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
There are various tax rebates offered to MSME.
It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
There are many government tenders which are only open to the MSME Industries.
They get easy access to credit.
Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
Business registered under MSME are given higher preference for government license and certification.
There is a One Time Settlement Fee for non-paid amounts of MSME.
Documents Required for MSME Registration
The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.
Business Address Proof
Copies of Sale Bill and Purchase Bill
Partnership Deed/ MoA and AoA
Copy of Licenses and Bills of Machinery Purchased
Business Address Proof:
If the premise is self-owned– Allotment letter, possession letter, lease deed or property tax receipt. If there is a municipal license in the business name or in the name of the proprietor, partner or director of the business, no other possession document is required to be submitted.
If the premise is rented– Rent receipt and a no objection certificate from the landlord is required. Also, any utility bill or document evidencing thelandlord’s ownership is to be submitted.
Copies of Sale Bill and Purchase Bill:
Business is required to submit a copy of sale 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.
Partnership Deed/ MoA and AoA
If the business is a partnership firm, it has to submit its partnership deed. If the partnership firm is registered, it has to submit registration certificate also.
In case of a company, a copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted. With it, a copy of the resolution passed in general meeting, and the copy of board resolution authorizing a director to sign the MSME application is also to be submitted.
Copy of Licenses and Bills of Machinery Purchased
In few cases, the applicant has to submit a copy of industrial license which is to be obtained by giving an application to Govt. of India. Further, all bills and receipts related to purchase and installation of plant and machinery have to be kept safe and required to be submitted on demand.
MSME schemes launched by the Government are:
Udyog Aadhaar memorandum
Aadhaar card is a 12 digit number given to all individuals by the government. In this, the Aadhaar card is a mandatory requirement. The benefit of registering in this scheme is ease in availing credit, loans, and subsidies from the government. Registration can be done both ways in the online mode or the offline mode.
Zero Defect Zero Effect:
In this model, goods that are manufactured for export have to adhere to a certain standard so that they are not rejected or sent back to India. To achieve this the government has launched this scheme. In this, if the goods are exported these are eligible for some rebates and concessions.
Registering in this scheme will help the micro, small and medium enterprises to understand and implement the quality standards that are required to be maintained along with the new technology. In this scheme, activities are conducted to sensitize the businesses about the new technology available through various seminars, campaigns, activities etc.
Grievance Monitoring System:
Registering under this scheme is beneficial in terms of getting the complaints of the business owners addressed. In this, the business owners can check the status of their complaints, open them if they are not satisfied with the outcome.
This scheme helps innovators with the implementation of their new design, ideas or products. Under this from 75% to 80% of the project cost can be financed by the government. This scheme promotes new ideas, designs, products etc.
Credit Linked Capital Subsidy Scheme:
Under this scheme, new technology is provided to the business owners to replace their old and obsolete technology. A capital subsidy is given to the business to upgrade and have better means to do their business. These small, micro and medium enterprises can directly approach the banks for these subsidies.
This scheme is especially started for women who want to start their own business. The government provides capital, counseling, training and delivery techniques to these women so that they manage their business and expand it.
The government has launched a number of more schemes and support system for these enterprises. To know more about the MSME schemes.