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Overview
What is MSME Registration?

Small scale industries play a essential role in the socio-economic development of India. To promote and motivate these small-scale industries, the authorities of the country created the MSMED Act. The Act used to be created to hold a listing of all the industries registered as MSME or SSI. The document aided in offering support and incentives to these firms. Furthermore, SSI helped in the employment of human beings at little capital investments.

How we can assist with MSME Registration?
  • - 2 WORKING DAYS

    Following are the archives to be submitted with us:

    • PAN cards
    • The condo settlement for the office tackle (if rented)
    • Electricity bill
    • Identity and tackle proofs of the proprietor/partners/directors
  • - 2 WORKING DAYS

    The submitted files are filed along with the application. In some states, extra forms might be wanted such as sale bills of equipment and municipal clearance.

  • - 15 WORKING DAYS

    If production has not begun, a provisional certificate is issued for 5 years. It becomes permanent when the unit is functioning.

Benefits of MSME Registration:

When you register your firm with Udyog Aadhar, the business can leverage many schemes initiated by State and Central Government. Some of the advantages of an MSME are:

Concession in the electricity bills

Increased chances of winning government tenders

Reduction in fee for filing patents and trademark registration.

Easy and cheaper bank loans

Stamp duty and registration charges are waived off

Reimbursement under the bar code registration

Industrial promotion subsidy


Type of MSME Registrations:
Provisional MSME Registration

The first stage of MSME registration is provisional which is given during the pre-investment period of the firm. At this point, the enterprise qualifies for:

Getting facilities for accommodation, land, etc.

Getting various necessary NOCs

Getting clearances from regulatory bodies.

The Provisional SSI Registration Certificate (PRC) gives small companies the freedom to get term loans.

Permanent MSME Registration

The second type of MSME registration 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:


Eligibility
Who should obtain SSI/MSME Registration?

The eligibility for MSME or SSI registration is dependent on the scale of business of the enterprise. Udyog Aadhar registration is applicable for Proprietorship, Hindu Undivided Family(HUF), one-person company(OPC), Partnership Firm, public limited company, private limited company, production company, co-operative societies, limited liability partnership(LLP) or any association of persons or any other undertaking.

FAQs on Private Limited Company
For how long is a Provisional Registration Certificate (PRC) valid?
The PRC expires at the end of five years, at which point you may re-apply if the unit is not yet operational, or if the unit exceeds investment limits set by the MSMED Act. Once you commence operations, you can apply for the Permanent License.
How does SSI/MSME help me get a loan from a bank?
All banks and other financial institutions recognise 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 will also be lower. There may also be preferential treatment in case of delay in repayment.
What factors are not counted as investment?
For a registration, total plant and machinery cost should be up to Rs. 25 crore for manufacturing units and Rs. 10 crore for service units. While calculating this number, the value of land and building will not be counted toward the total investment. Also, the original cost of the equipment and plant and machinery is taken into account. Depreciation cannot be factored in.
What benefits are given by state and central government?
Most states offer those units registered under the MSMED Act a subsidy on power, taxes, and entry to state-run industrial estates. In particular, there is a sales tax exemption in most states and purchase preferences on goods produced. Depending on your business, you may also enjoy an excise exemption scheme and exemption from certain direct taxes in the initial years of your business.
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