The Ministry of micro small and medium enterprises is working towards encouraging MSM Enterprises involved in processes like manufacturing, processing, production, and preservation of goods thereby fostering the growth of startups in the country.
The Government of India has introduced the Micro, Small, and Medium Enterprise Development (MSMED) Act, 2006.
In this article, let us find out more about MSME registration and how will you benefit by doing the same.
How to register for MSME?
MSME registration online registration is possible. For this, you will require your Aadhar number for getting it certified. You can get the certificate virtually and there is no need for a hard copy. It is an easy process for the enterprises that have the MAME Certificate if they are interested in getting approvals, licenses, and registrations done in any sector of their business from the concerned agencies or authorities.
New criteria for registering for enterprises
According to MSME Notification dated June 1st, 2020, the following are the criteria that were in effect from July 1st, 2020.
- Classification- Manufacturing & Service
- Micro- Turnover is less than 5 Crore and Investment is less than 1 crore.
- Small- Investment less than 10 Crore AND Turnover less than 50 Crore.
- Medium – Investment less than 50 Crore AND Turnover less than 250 Crore
What kind of enterprise is eligible to apply for registration under MSME?
As per the MSME Act, 2006 all kinds of enterprises can register.
- Type of Proprietary- Co-Operative
- Hindu Undivided Family – Private Company
- Partnership-Public Company
- Type of Proprietary – Self Help Group
- Hindu Undivided Family – Limited Liability Partnership
- Partnership- Society
Type of business eligible for MSME registration
According to MSME Act, 2006, these business activities can get registered under MSME. It comprises either a Service provider or manufacturer. Traders will not be permitted to get registration for MSME.
- There are many benefits of registering under MSME, including availing MSME loan.
- Requirement of documents required for registration include providing details about-
- Social category
- Whether physically handicapped or not
- Enterprise name
- Type of organization
- Location of the plant
- PAN Number
- Official address
- Commencement date
- Bank details
- District Industry Centre
- Number of people employed
- Turnover and Investment
- National Industry Classification
- The major unit of activity
Not all activities are allowed to get registered under the MSME Act. You should explore as many aspects of it as possible.