Introduction: MSME Registration

The other name of MSME is Micro, Small and Medium Enterprises. In India, MSME industries are the lifeblood of the economy

The contribution of MSME sector is 45% of India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial units of the country and these industries manufacture more than 6000 types of products. When these industries grow, the economy of the country automatically grows as a whole and flourishes. These industries are also called small-scale industries or SSI’s.

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Registration Process

• Registration process is done through both online and offline procedures.
• Aadhaar Number is mandatory for registration.
• File an online form using Udyog Aadhaar Registration.
• For the verification process, one can use e-Aadhaar OTP.
• Prior to commencement of business, provisional registration is issued by MSMEs
• Provisional Registration is valid for 5 years or 60 months.
• Provisional registration assists in obtaining bank loans and in applying for NOC from the regulatory authorities.
• After the commencement of business, entrepreneurs can apply for Permanent License.
• Permanent License comes with Lifetime Validity. It can also be canceled under special circumstances.

Benefits of MSME Registration

• The bank loans become cheaper due to the MSME registration as the interest rate is very low around ~ 1 to 1.5% and is even lower than interest on regular loans.
• There is various tax rebates offered to MSME.
• It also allowed credit to be carried forward for minimum alternate tax (MAT) for a period of up to 15 years instead of 10 years
• Many government tenders are only open to the MSME Industries.
• As many rebates and concessions are available as MSME once registered the cost getting a patent done, or the cost of setting up the industry reduces
• For government license and certification, business registered under MSME is given higher preference

Documents Required for MSME Registration

Documents required for MSME registration are as follows:-

• Aadhaar number 
• PAN number
• Address of the business
• Bank account number
• The basic business activity 
• NIC 2 digit code 
• Investment details (Plant/equipment details)
• Turnover details (as per new MSME definition)
• Partnership deed
• Sales and purchase bill copies 
• Copies of licenses and bills of purchased machinery

Eligibility For MSME Registration

Following is eligibility for MSME Registration:-

Fees for MSME Registration

There is no government fees required for MSME Registration. A fee charged by many portals is basically registration fees.