Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last six decades. MSMEs not only play a crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth.
As per the latest amended definition of the MSME sectors, the distinction between the manufacturing and services enterprises has been removed by making investment amounts and annual turnover similar for enterprises engaged in both the sectors. The amended following categories of enterprises are recognized as under:
- Micro Enterprises – Enterprises with an investment of less than One crore and turnover less than Five crores, for both the manufacturing and service sector.
- Small Enterprises – Enterprises with investment not exceeding Ten crores and turnover not exceeding Fifty crores, for both the manufacturing and service sector.
- Medium Enterprises – Enterprises with investment not exceeding Fifty crores and turnover not exceeding Two Hundred and Fifty crores, for both manufacturing and service sector.
The registration is completely carried out online, with the submission of the online form along with soft copy of relevant documents. Application is submitted by furnishing company and personal information of the applicant. Any discrepancy in the submission will be notified which needs to be rectified. Soft copy of MSME certificate will be issued via email – no hard copy is issued.
- Name of enterprise/business and its main business activity
- Aadhar Number of the Applicant
- Certificate of incorporation of your organization
- MoA and AoA or Partnership deed
- Annual Turnover
- Investment in Plant & Machinery / Equipment
- Type of organization being opted for
- Copy of PAN card
- Address proof of registered office address.
- Valid Mobile number and email address
- Bank Account Number and IFSC code
- NIC code
- Number of employees
1. What is MSME Registration?
MSME Registration is done under Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. The MSME Act aims at facilitating the promotion, development and enhancing the competitiveness of micro, small and medium enterprises, and registration provides Micro, Small and Medium sized enterprises with a number of benefits and access to various subsidies and schemes.
2. Is MSME Registration compulsory?
No, MSME registration is not compulsory.
3. What is Provisional Registration Certificate (PRC)?
This is given for the pre-operative period and enables the units to obtain funding and approvals to become operational. With a PRC, an enterprise can secure loans and working capital from financial institutions/banks under priority sector lending as well as obtain various NOCs and permissions/ licenses, viz. for Pollution, Labour etc.
4. What is Permanent Registration Certificate?
Permanent Registration Certificate is the actual MSME Certificate. Having this, allows the registrant to avail the various benefits and schemes available to an MSME (including tax exemptions, lower tariff and loan rates, etc).
5. What is the validity of MSME Registration?
The PRC expires at the end of five years or until the unit becomes operational or if the unit exceeds investment limits. One may re-apply if the unit is not yet operational or exceeds the limit. Once the unit commences operation, then it can apply for the Permanent License. Permanent License remains valid till the time the unit does not cross the investment limit.
6. Is the MSME certificate issued online?
Yes, after the application form has been filed on the website, the certificate shall be issued online via email to the applicant.
7. Do we get a physical copy of the MSME Certificate?
No, physical copy of MSME Certificate is not issued as the Government believes in paperless work and environment protection.
8. Who Can Apply for MSME Registration?
Any entrepreneur having a valid Aadhaar Number can apply for MSME Registration Online.
9. What are the chances of rejection of Online MSME Application?
Every application will be approved. No application will be rejected. Application will be approved on the basis of information provided by the applicant.
10. What benefits do the Tool Rooms of Ministry of MSME provide to MSMEs?
Tool Rooms are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products, and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries especially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Autonomous Bodies (10 MSME Tool Rooms and 8 Technology Development Centres) under DC (MSME).
11. Is credit score necessary for MSMEs?
No, credit score is not required or necessary for MSMEs
12. What are the activities excluded under MSME in India?
The activities excluded under MSME are as follows:
- Forest and Logging activities;
- Activities related to Fishing and aquaculture;
- Activities related to retail trade, Wholesale, and repair of motor vehicles and motorcycles;
- Activities related to Wholesale trade except for motorcycles and motor vehicles;
- Activities related to Retail Trade Except for motorcycles and Motor Vehicles;
- Activities related to households as employees for domestic personnel;
- Activities related to undistinguishable goods and services-producing activities of private households for own;
- Activities associated with extraterritorial organizations and bodies.
13. What are the benefits of MSME Registration?
- MSME registration helps in getting government tenders Under bank loan, 15% import subsidy on fully automatic machinery
- Becomes easy to get licenses, approvals and registrations, irrespective of the field of business Compensation of ISO certificate expenditure
- Helps in getting low-interest rates
- Registered MSMEs gets tariff subsidies and tax and capital subsidies
- Gets exemption under Direct Tax Laws