MSME Registration India
As a small enterprise, you can have access to priority sector lending, tax exemptions & capital investment and power tariff subsidies.
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What is Micro, small & medium enterprises?
Previously known SSI registered entities are now known and registered as MSME, i.e.; Micro, Small and Medium Enterprises. MSME stands for Micro, Small and Medium enterprises, categorized based on the annual revenue in business. These entities possess MSME registration certificate, registered with MSME Department of the Central Government under MSME Development Act, 2006. The Act was enacted for the promotion and growth of the businesses operating at small or medium scale. Where all major activities were eligible for registration under MSME earlier, trading and other few activities are now specifically excluded from eligibility. Although the registration is voluntary, businesses prefer to obtain MSME registration online due to numerous benefits declared by the government.
Benefits of MSME Registration India
Subsidised rates of loan
Avail 50% rebate on TM application
Protection against Delayed payment of Buyers
Credit Guarantee Scheme
Documents required for MSME Registration India
- Business address proof
- Copies of sale bill and purchase bill.
- Partnership Deed/ MoA and AoA.
- Copy of licenses and bills of machinery purchased.
- For firms that are listed in Schedule -III of the Industrial Licensing Exemption Notification, no Industrial license is needed. Every other enterprise must obtain it for the PRC (Provisional Registration Certificate) application.
- For the registration and document process, all statutory and administrative clearances need to be obtained such an NoC from pollution board to prove that no restrictions are being violated.
Type of MSME Registration Online
Provisional MSME Registration Online
The first stage of MSME registration online is provisional which is given during the period before the establishment of the entity or the pre-investment period of the firm. At this point, the enterprise qualifies for:
- Obtaining facilities for accommodation, land, etc.
- Obtaining important approvals and NOCs
- Obtaining clearances from regulatory bodies
such as Pollution Control Board and Labour Regulations
The Provisional SSI Registration Certificate (PRC) enables small units to obtain term loans, and working capital from financial institutions and banks under priority sector lending.
Permanent MSME Registration Online
The second type of MSME registration online is permanent. It is given to industrial units that are already functioning. Though the Act is not mandatory, it is immensely beneficial for firms to have the support of government.
FAQs on MSME Registration India
All financial institutions, including the major banks recognise MSMEs/SSIs and have devised special schemes for them. MSMEs and SSIs are earmarked for priority sector lending. This increases the likelihood of you being granted a loan considerably. Major Indian Banks also provide loans to MSMEs at lower interest rates. You may also expect to get preferential treatment in case of any future delay in repayment.