MSME Registration- What is MSME, Eligibility, Documents,Certificate and Application Process

MSME registration is required for any business to legally START operating in India.According to the MSME Act, companies can obtain MSME registration whether they are in the manufacturing or service industries.The Government of India has not yet made MSME registration mandatory, but it is beneficial to get one's business registered under this because it provides many benefits. Let's take a look at the MSME registration process, benefits etc.

What is MSME?

The term MSME (Micro, Small, and Medium Enterprise) was coined by the Indian government in accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006. MSME are entities engaged in the production, manufacturing, processing, or preservation of goods and commodities and are initiated and managed by the Ministry of MSME (MoMSME). MSME industries are also referred to as small-scale industries (SSIs). MSME registration allows these businesses to access the various government benefits available to MSMEs.

Documents required

• Aadhar number
• PAN number
• Address of the business
• Bank details

MSME Registration Certificate

The MSME Registration Certificate serves as evidence of MSME business registration. MSME Certificate is the unique number assigned to individuals or organisations who register their MSME business through the MSME Registration Portal. It is a proof of certification given to business owners after MSME registration.

Benefits of MSME Registration

• Advantages of government schemes can be taken by registering in MSME.
• A concession on your electricity bills is received.
• A subsidy on Interest rates of bank loans
• Participation in international trade fairs
• Delayed payment protection
• ISO Certification Security

How to apply for MSME registration

• Go to the official MSME registration portal.
• Select the Udyam Registration tab.
• Fill out the application form with all the required details
• Proceed the payment for the application
• The application will be processed by a representative and an MSME certificate will be issued in 1or 2 hours.

After 14 years since the MSME Development Act, on 13.05.2020, a revision in the MSME definition was announced in the Atma Nirbhar Bharat package to bring more units under the purview of the schemes announced. The composite criteria for defining an MSME, according to this package, are investment and turnover; the limit has been raised. The distinction between the service and manufacturing sectors is also gone. The investment and turnover limits for Micro units (both manufacturing and services) have been raised to Rs. 1 crore. Similarly, the small unit's investment and turnover limits have been raised to Rs. 10 Crore.