CV ASSOCIATES: Let’s Start Your Udyog Aadhaar MSME Registration & Helps in Make in India
MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. MSME registration or SSI registration helps businesses avail multiple government subsidies and benefits MSMED act.
Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI registration under the MSMED Act. Although getting MSME registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.
WHAT ARE THE DIFFERENT TYPES OF MSMEs?
There are 3 types of MSME or SSIs which can be classified as under:
– Micro Enterprises: Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment.
– Small Enterprises: In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores.
– Medium Enterprises: And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores.
What is the difference between MSME, SSI & Udyog Aadhaar?
There is no difference between MSME, SSI & Udyog Aadhaar. There are all one and the same.
DOCUMENTS REQUIRED FOR MSME REGISTRATION
1. Pancard.
2. Aadhaar Card
3. Type of Organization (Proprietary, Partnership, Pvt Ltd, LLP, OPC)
4. Date of Commencement.
5. Bank details (IFSC Code, Bank Account No).
6. Persons Employed.
7. Business Details & Total Investment in Business.
8. Email Id and Phone Number.
BENEFITS OF MSME REGISTRATION
1. Easy Bank Loan up to 1 Crore without collateral / mortgage
The Govt. of India and SIDBI has launched a Credit Guarantee Scheme (CGSME) to make available collateral-free credit to SMEs.
2. Preference in procuring Government tenders
The Government of India gives special preference in buying from Micro and Small businesses through Govt. tenders.
3. 1% exemption on interest rate on Bank Over draft (OD)
Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on over draft (OD).
4. Concession in Electricity bills
Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department.
5. Protection against the delay in payment from Buyers
Maximum period for payment for purchases from MSME shall not exceed 45 days, in case of delay, the buyer is liable to pay interest to the SME supplier, at 3 times of the bank rate.
6. Tax Rebates
MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
7. Special 50% discount on Govt. fees for Trademark & Patent
Enterprises that have MSME Certificate can avail 50% subsidy for patent & trademark registration.
8. Fast resolution of disputes
Enterprises undergoing a dispute with regard to payments may refer the dispute to the MSME Facilitation Council for conciliation & arbitration.