MSME registration
All the business which are operating in the market and want to get a legal existence and want avail benefits under MSME scheme can get register themselves under Micro, small and medium enterprise development act 2006 and as per government enacted act Micro, Small and Medium Enterprise Development (MSMED)
MSME remains under any of these three classifications for Micro, Small, Medium Enterprises and any venture falling in under. MSME ventures are the foundation of any economy and a motor of financial development, developing fair progress for everyone. In this way, the Government of India will support and advance MSMEs through various sponsorship schemes and encourage these companies through MSMED act. MSME Registration is required to take advantage of the benefits provided for by the MSMED Act from the central or state government and the banking sector. MSMED act requires that every MSME be licensed whether the company is service-related or for manufacturing. MSME registration is a useful plot to exempt the extract, impose endowments, control tax sponsorships, capital speculation appropriations and others.
MSME stands for Micro, Small, and Medium Enterprise, they are Indian economy's backbone. The small-scale industries are also known as MSME. With about 63.4 million units across the country's geographic expanse, MSMEs contribute about 6.11 percent of manufacturing GDP and 24.63 percent of GDP from service operations, as well as 33.4 percent of manufacturing production from India. They have been able to provide around 120 million people with jobs and contribute around 45 percent of India's total exports. Indian economic growth depends on this sector.
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Previous Definition |
Revised Definition |
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Micro means
For the manufacturing sector Micro means an enterprise where investment in plant and machinery does not exceed Rs.25 lakh
For the service Sector Micro means an enterprise where investment in plant and machinery does not exceed Rs.10lakh
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Micro means
For Manufacturing and service sector both Micro means an enterprise where investment in plant and machinery does not exceed 1 crore and Turnover does not exceed 5 crores. |
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Small means
For the manufacturing sector Micro means an enterprise where investment in plant and machinery more than Rs.25 lakh but does not exceed Rs. 5 Crore
For the service Sector Micro means an enterprise where investment in plant and machinery more than Rs.10 lakh but does not exceed Rs. 2 Crore |
Small Means
For Manufacturing and service sector both Micro means an enterprise where investment in plant and machinery more than Rs.1 crore but does not exceed Rs. 10 Crore and Turnover does not exceed 50 crore |
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Medium means
For the manufacturing sector Medium means an enterprise where investment in plant and machinery more than Rs.5 crore but does not exceed Rs. 10 Crore
For Service Sector Medium means an enterprise where investment in plant and machinery more than Rs.2 crore but does not exceed Rs. 5 Crore |
Medium means
For Manufacturing and service sector both Micro means an enterprise where investment in plant and machinery more than Rs.10 crore but does not exceed Rs. 50 Crore and Turnover does not exceed 250 crore |
Benefits of MSME registrations:
- Helps in getting a bank loan
The Government of India has made collateral-free finance facilities to the small and micro business entities. Banks and other money-related organizations, perceive MSMEs, have made excellent schemes for them. This more often than not removes the need for segment loaning, which implies a high likelihood of a credit being supported by your company and lower cost of bank financing.
- Subsidy on Trademark registration and Patent registration
The government provide 50% of subsidy on the registration fee of trademark or patent registration on holding MSME certificate
- Exemption on overdraft interest
Business registered under MSME will avail the exemption on an interest rate of OD which will differ bank to bank
- Eligible to avail subsidy on industrial promotion
Business registered under MSME will get subsidy can for business promotion
- Tax benefit
In the initial years of your company, you can enjoy an excise benefit scheme, as well as exemption from some direct taxes.
- Government Tender filing
NSIC registered organization gets preference while seeking government tender and for NSIC Registration MSME is compulsory, indirectly MSME helps in seeking government tenders.
- Concession on Electricity bill
- Reimbursement of ISO certification charges. etc
The procedure of MSME registration:
Step1. Verify your Aadhar
The first step is to verify your Aadhar on Udyog aadhar site and verify your mobile number registered with your adhar number through OTP, if your number is not registered with aadhar then proceed with enrolment with another identity proof document.
Step2. Fill up the form
After mobile verification, MSME registration form will be open and form will consist of detail:
- Form of the organization (Proprietorship/partnership/company/LLP)
- PAN detail of organization (compulsory for company/LLP)
- Address detail of manufacturing or operating unit from where the business is operated
- Address detail registered office address
- Then choose your Sector under which you perform your business (Either Manufacturing sector/service sector)
- Then choose your NSIC code (National Industrial Classification) as per your business
- Then MSME holder mobile number and email id
- Then provide the bank details
- Provide the initial capital detail
- Provide the worker's detail (number of workers employed)
Step3: Review the form before submitting it.
Step4: Submit the form and verify your OTP while submitting the form, after submission one UAM number will be generated note that for future reference.
Step5: After submission of you will get your MSME certificate immediately or within 24hrs
Step6: Print your MSME certificate
Documents and Information required for registration
Documents:
a. PAN copy of the business entity
b. PAN card copy of applicant (Director/Partner/proprietor)
c. Aadhar card of applicant (Director/Partner/Proprietor)
Information required
a. Business Name and address detail of registered office and operational office
b. Detail of business for deciding your NSIC (about the product and services which business is providing)
c. Business Bank Account detail (Bank name, branch name, account number and IFSC)
d. Initial capital investment amount (in lakhs)
e. The number of workers employed
f. Date of establishment of business
g. Other information as per requirement.
MSME Loan
It plays an important role in India's social and economic development. One of the key issues facing the sector is access to timely and sufficient financing. Catering for the financing needs of this significant segment of the Indian economy along with simplifying a credit manager's decision-making process is of paramount importance.
Running a successful business in a competitive world is no easy task. We understand how important it is for a business to have timely finance available without having to undergo tedious and long formalities. It should be a smooth, easy and quick process to apply for a business loan (term loan, working capital loan & mudra loan).
In the Digital Arena, through this platform, we offer MSMEs a great provision to meet their funding requirements by reducing turnaround time from days to just 59 minutes to receive in-principle approval!
The platform's greatest benefit is that it reimagines and strengthens the overall fund-raising cycle. A very large portion of the operation is digitized and automated. Businesses are not only demanding convenience but also peace of mind and both are offered by the platform.
Who can avail a loan online :
Individuals/ownerships, companies, incubation centers, companies, firms, LLPs and every other legal entity
Company loan Approvals with /without collateral are currently issued for the amount of INR 1 Lac to INR 5 Crore in principle. The interest rate starts at 8.5 percent. The Application is built with CGTMSE to check borrowers' eligibility.
Personal loan approvals are currently valid up to INR 20 Lacs, Home Loan In principle approvals are currently valid up to INR 10 Crores and Auto Loan In principle approvals are currently valid up to INR 1 Crore
Documents required for a loan application:
- Bank statement of the last 6 month
- Proof of business registration (Certificate of incorporation/ or another registration certificate)
- Owners detail/directors detail/partners detail
- GST registration certificate
- Profit and loss statement and balance sheet of the last 3 years
- ITR returns
Procedure for applying for MSME loan online:
Step 1. Visit to https://www.psbloansin59minutes.com/home and click on apply
Step 2. Create your signing and verify it with your mobile OTP
Step 3. Submit your loan requirement
Step 4. Fill the application
Step 5. Select your banking partners and answer the question as per your business information
Step 6. Fill your GST details and verify that accordingly
Step 7. Enter your income source information
Step 8. Fill all the information related to company/business
Step 9. After filling all information submit your application
After submission of the loan application, your selected banking partner will revert on that application and process your loan or will ask for additional information if needed.
