MSME Registration for the Modern Entrepreneur.
Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises
Benefits of MSME Registration
Micro-Small & Medium Enterprises (MSMEs) contribute largely in the socio-economic development of our country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSME registration is highly important, as it enables these enterprises in availing benefits from various government initiated schemes. MSMEs are classified in two categories, such as manufacturing and service enterprises.
Benefits of MSME Registration
- MSME registration helps in getting government tenders
- Under bank loan, 15% import subsidy on fully automatic machinery
- Becomes easy to get licenses, approvals and registrations, irrespective of field of business
- Compensation of ISO certificate expenditure
- Helps in getting low interest rates
- Registered MSMEs gets tariff subsidies and tax and capital subsidies
The classification of MSME for both goods and services organisation is done on the basis of the turnover and is as follows:-
Upto Rs. 5 Crores & Investment Upto Rs 1 Crores.
Rs. 5 Crores to Rs. 50 Crores & Investment Upto Rs 10 Crores.
Rs. 50 Crores to Rs. 100 Crores & Investment Upto Rs 20 Crores
MSME Registration Further Process
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We will require basic documents & bank details to register under MSME.
A Minimum of one and a maximum of 2 working days are required to prepare all the filing documents.
Compliance wizard.com can Register for MSME in 1 to 2 days.
Once the Documents are submitted & Approved, MSME certificate will be generated.
Benefits of Registration as MSME or Udyam
EASY AVAILABILITY OF LOAN
Every MSME whether in manufacturing sector or service sector is entitled to collateral or mortgage free loan from Bank for an amount up to Rs. 1 Crore through SIDBI under Credit Guarantee Scheme.
GOVT. PROCUREMENT PRIORITY
Central or state government departments have been mandated to extend priority treatment to MSME while procuring goods or services for the consumption of goods or services for public purposes.
While availing bank overdraft facility from a bank, MSME has a reason to smile as Banks need to offer 1% less interest rate on the overdraft extended to the MSME which is registered with Udyam.
TA registered MSME can avail concessional rate of electricity for their unit by making a written application along with the certificate issued after registration as MSME ( Udyog aadhar) to the electricity department.
SPEEDY RECOVERY OF DUES
The MSME is required to be paid as per the agreement between parties or within 45 days if there is no understanding between them. Failure entitles the MSME for an interest which is three times the bank rate.
REBATE IN TAXES
MSME registered under the MSMED Act, 2006 is eligible for many tax incentives and exemption both under the Direct Taxes and Indirect Taxes including GST such as capital gain subsidy schemes under income tax act.
Documentation of MSME Registration
|List of Document|
Udyam is a free facility by government, and there is no fee charged by government.
PAN Number in case of company, LLP or cooperative society, it is optional in all other cases.
Aadhar number and pan of the applicant, an OTP shall go to his mobile and email id for confirmation.
Address Proof of Establishment, either in the form of a sale deed or valid rent agreement.
Bank Account Information (bank statement and cancelled cheque).
NIC Code of the products and services in which the enterprises are dealing at the time of registration.