What Is MSME
MSME stands for micro, small and medium enterprises, and these are the backbone of any developing economy. To support and promote MSMEs, the Government of India through various subsidies, schemes and incentives promote MSMEs through the MSMED Act. To avail the benefits under the MSMED Act from Central or State Government and the Banking Sector, MSME Registration is required. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
- A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
- A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore;
- A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
Why MSME
We provide our clients GST registration services. We help them get GST number so that they can easily manage their business. GST number is required at each process from purchasing of raw material, billing, invoice, transportation, brand registration, product selling etc.
Benefits Of MSME
The MSME registration is not statutory. However, the MSME registration process in India has been conceptualized to provide maximum benefits to all types of enterprises. After registration, any enterprise becomes qualified to reap the benefits offered under the MSMED Act. Some of the benefits from Central Government include easy sanction of bank loans (Priority sector lending), lower rates of interest, excise exemption scheme, exemption under Direct Tax Laws and statutory support such as reservation and the interest on Delayed Payments Act.
State Government and Union Territories also have complied their own package of facilities and incentives for MSMEs. Some of the benefits provided by State Govenement for MSMEs include development of specialized industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.
Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word MSME in their exemption notifications. Therefore, the registration certificate issued by the registering authority is seen as proof of being MSME and is required to avail the benefits sanctioned for MSMEs.
Documents Required For MSME Registration:-
- Aadhar Card
- In the case of a Proprietorship Firm, the Aadhar number of the proprietor is to be entered in the Udyam Registration form.
- In the case of a Partnership Firm, the Aadhar number of the managing partner is to be entered in the Udyam Registration form.
- In the case of a Hindu Undivided Family (HUF), the Aadhar number of the Karta is to be entered in the Udyam Registration form.
- In the case of a Company or Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the Aadhar number of the organization or authorized signatory is to be entered in the Udyam Registration form.
- PAN Card
- GSTIN (GST Identification Number), if the enterprise is required to be registered under GST Law.
- Note: Having GSTIN is not compulsory for enterprises that do not require a GST registration under the GST law. Such enterprises can register under MSME without having a GST registration. However, the enterprises that need to compulsorily obtain GST registration under the GST regime must have GST registration for obtaining MSME/Udyam Registration.
The above documents need not be uploaded but the Aadhar and PAN number of the entrepreneur is required to be entered in the registration form.
