Micro, Small, and Medium-Sized Enterprises (MSME) Registration
Government rewards certain incentives to all micro, small and medium-sized enterprises registered under the MSME Definition (MSMED) Act, 2006.
Digital Filings can help you in…:
Accumulating and through scanning of all the details required for registration.
Conducting the application process from inception to end
Obtaining the MSME certificate within ten working days
Get Started!
Understanding MSME Registration
The government of India introduced MSMED Act in 2006 in order to promote competitiveness, productivity, and innovation among the micro, small, and medium-sized businesses. The prescribed government organization offers an abundance of benefits in form of incentives to all MSMEs registered under the corporation. MSME Registered entities enjoy advantages such as power tariff subsidies, capital investment subsidies, exemption from excise and direct taxes, and many others. These enterprises also get an additional benefit of priority sector lending.
As per MSMED Act guidelines, an entity serving in the manufacturing sector or service sector can claim for MSME certification only if investment shelf (distinct for every enterprise) is not exceeded. Another point worth noting is that MSME Registration is not lawfully essential rather it is a voluntarily taken decision to enjoy a range of subsidies and schemes offered by the Indian government.
Also, Government of India has defined and considered MSME / Small Scale Industries (SSI) / Udyog AADHAAR to be the same type of registrations for micro, small, or medium enterprises.
Key-Elements of MSME Registration
‘Micro’ Investment Threshold
Being the smallest business unit in the range, a ‘micro’-manufacturing unit shall not exceed the investment more than INR 25 Lac, while a micro service enterprise is allowed to invest up-to INR 10 Lac in order to enjoy the prescribed benefits.
‘Medium’ Investment Threshold
MSMED Act entitled ‘medium’ enterprise, the manufacturing entities with an investment on plant and machinery in between INR 5 Crore to INR 10 Crore, while for service providing entities the limit is from INR 2 Crore to INR 5 Crore.
‘Small’ Investment Threshold
As prescribed by the MSMED Act, a ‘small’-manufacturing enterprise is the one which invests on plant and machinery ranging between INR 25 Lac to INR 5 Crore, while ‘small’ service enterprise invests between INR 10 Lac to INR 2 Crore.
Easy Business Credit
By enrolling a micro, small, or medium sized business under MSMED Act, a proprietor can facilitate credit benefits offered by Central and State government, including a lower rate of interest on loan amount and trouble-free loan approval.
Elective Participation
Registration under MSMED Act is not a legal obligation rather a proprietors / entities voluntarily enroll their businesses under the organization in order to enjoy an abundance of benefits offered by the corporation.
Required Documentation Chart
MSME Registration Documents
To be Submitted by Authorized Persons / Entities:
- AADHAAR number and PAN of the applicant, along with a valid Mobile Number / e-Mail (for verification)
- PAN Number is mandatory for Company, Limited Liability Partnership (LLP), or Cooperative Society forms of entities, however, it is optional for all other businesses
- Address Proof of Establishment (Either of Below)
- Sale Deed
- Rent Agreement (with landlord’s consent to carry out business on the rented property)
- Bank Account Information
- Bank Statement (recent 3 months)
- Cancelled Cheque
- National Industrial Classification (NIC) Code of the products and services the enterprises deals in
Additional Documents for Specific Cases:
Private Limited Company:
- Memorandum and Articles of Association;
- Form-32 and Form-18;
- Certificate of Incorporation
Partnership Firm
- Partnership Agreement / Deed
We are Glad to Help!
Either you are a micro, small, or medium sized Manufacturer or a Service Provider you are eligible to enjoy all MSME benefits, including Easy Loans; Prioritized Government Procurement; Low-Interest Overdraft; Concessional Electricity; Speedy Recovery of Dues; Rebate in Taxes; 50% Discount on Intellectual Property / Trademark Protection; MSME Dedicated Conciliation Centre, and much more.
Trained Experts @ Digital Filings can effectively assist you obtaining MSME for your business so that you can Relish all these Lucrative Grants.
What People Frequently Ask…
What factors are excluded under the ‘defined’ investments?
For a registration under MSME, maximum investment limit for manufacturing business is INR 10 Crore, while for service units the limit is INR 5 Crore. For the calculation purposes of the investment amount, the value of land and building will be excluded and only the original cost of the equipment, plant and machinery is taken into account, however, Depreciation cannot be factored in.
How MSME can help businesses to get a loan from a bank?
To grant loans, banks and other financial institutions prefer MSMEs and have created special schemes for them. This usually includes priority sector lending, which means that the likelihood of your business being sanctioned a loan is high. Bank loan interest rates are also kept lower for units registered under MSME. There may also be preferential treatment in case of delay in repayment.
Is there is any Charge for MSME registration?
MSME / Udyog AADHAAR / SSI registration are provided for free by the Government. You can wish to visit the / Udyog AADHAAR / SSI website directly and registered for free.
Is MSME / Udyog AADHAAR / SSI registration voluntary or mandatory?
The MSME / Udyog AADHAAR / SSI Registration is only needed to enjoy the prescribed subsidies and benefits and It is absolutely voluntary. The registration process is fairly easy and quick, however, you need to have a manufacturing plant or a commercial space where you render services. Moreover, the registration is free of cost, therefore, many businesses prefer MSME registrations over others.
Pocket-Friendly Options
Basic
Package Include:
MSME registration.- (Above price includes all taxes and relevant government fees.)
Standard
Package Include:
- GST Registration + MSME Registration
- (Above price includes all taxes and relevant government fees.)
Premium
Package Include:
- GST Registration + MSME Registration
- + 12+1 GST Filing (includes all taxes & fees.)
How we Do It…
Experienced partners at Digital Filings can assist you in registering and setting-up your OPC in a maximum of 10 to 15 business days, depending on the time coordination with the government authorities and clients.
Arranging the Essentials
The competent representative of Digital Fillings will gather all required data and documents as per your ease. We will then arrange the relevant information and documents in a prescribed manner to take the process further.
Proceeding for the Application
Once all the required documents and information are assigned on the right place, our team will file the petition for registration of your business under MSMED Act. An experienced representative will manage the entire paperwork with the concerned officials.
These are Required Too!
Some additional documents, like sale bills of machinery and municipal clearance, may be required at this stage, as the procedure differs from state to state. But not to worry, expert partners @ Digital Filings will proficiently manage it all.
Fulfilling the Objective
After receiving a positive review on a thorough examination of the paperwork, the partner at Digital Fillings will meet you with MSME certification for your business, allotted by the authorities.
Why DigitalFilings
Easy Registration
Experts at Digital Filings can proficiently help in registering your sole proprietorship firm, either by getting you a GST / VAT Number, Service / Professional Tax Registration, a Shops & Establishments Act Registration, a Micro, Small & Medium Enterprises (MSME) Registration, or an Import-Export Code.
Supportive Team
The team of well-informed professionals at Digital Filings is just a phone call away to address every concern / query about the registration of your sole proprietorship venture. We will, however, put our best to make sure that all your questions are well-answered even before they strike in your mind.
Expert Support
Experts at Digital Filings precisely understand all of your requirements and strive to ensure that all the desired documents are in place so that you can effectively align yourself with every legal / administrative interaction. We will also provide you complete clarity on the process to set genuine expectations.