Who Can Apply For MSME Registration?

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Who Can Apply For MSME Registration?
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In case you have been wondering whether your
business entity can go for MSME registration or
not, you are at the perfect place. Before we dive
deep into the eligibility for MSME registration,
lets first quickly understand what MSMEs
are. MSME stands for Micro, Small and Medium
Enterprises. They are such a vital part of
Indias developing economy that the government of
India has created a separate ministry to support
and promote MSMEs. Through the MSMED Act, 2006,
the Indian government provides special benefits
to the MSMEs in the form of cheaper loans, tax
benefits, and various schemes and subsidies. If
you are an existing business owner or an aspiring
entrepreneur, you can receive multiple benefits
through MSME registration. MSME registration is
not mandatory. However, if you are seriously
interested in availing the benefits the
government provides to small businesses and
entrepreneurs, you should go for it.
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Who can apply? Any business entity can obtain
MSME registration or Udyog Aadhaar registration.
Proprietorship firms, LLPs, public and private
limited companies, Hindu Undivided Family (HUF),
Partnership firms, One Person Companies,
Co-operative Societies, Association of Persons,
or any other form of the undertaking can obtain
MSME registration. Aadhaar number is mandatory
for MSME registration. The entrepreneur who is
willing to register his/her entity with the
government must possess a valid Aadhaar
number. MSME Classification Under the MSME
Development (Amendment) Bill, 2018, a new
classification system has been introduced. Any
business with a turnover of up to ?5 crore will
be considered a micro-enterprise. The other
slabs are ?5-75 crore for small enterprise and
?75-250 crore for medium enterprise.
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• Documents Required For MSME Registration
• MSME registration can be done online as well as
  offline. There are no registration fees involved,
  and its an easy and hassle-free process. The
  MSME registration documents you would need are as
  follows
• Business Address Proof Possession letter,
  property tax receipt, lease deed, allotment
  letter, municipal license, utility bills, rent
  receipts, and a No Objection Certificate from the
  landlord, any of these documents would work as a
  proof of your address.
• Copies of Sale Bill and Purchase Bill For each
  raw material that is used in the production
  process, a purchase bill has to be submitted.
  Similarly, for every manufactured product or
  service supplied, a sale bill must be submitted.
• Documents of Legal Incorporation If the entity
  is a partnership firm, the partnership deed and
  registration certificate are required. If the
  entity is a company, a copy of Memorandum of
  Association (MoA) and Articles of Association
  (AoA), and certificate of incorporation is
  required to be submitted. Along with this, a copy
  of the board resolution sanctioning the
  registration of the company as an MSME is also
  required.
• Other Essential Documents In some cases, the
  applicant has to submit a copy of an industrial
  license which can be obtained from the Indian
  government after applying. All bills reflecting
  the purchase and installation of machinery and
  equipment must also be produced.

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• Registration Process
• There is an online, free process for MSME
  registration. Although its not a must before you
  begin your enterprise, it is highly recommended
  because of the benefits it comes with. You need
  to fill out an application form which will
  require the following details
• Aadhar number of the applicant
• Name, gender, PAN number, email id, and mobile
  number of the applicant
• PAN, location, and address of the organization
• A number of employees and the date, you are
  planning to start your business
• Bank account number and IFSC code
• The basic business activity of the enterprise
• NIC 2 digit code.
• Investment in plant and machinery/equipment
• Once the process of registration is complete, you
  will get the MSME certificate. The Ministry will
  not issue any hard copy for it. A virtual
  certificate is what you will receive.

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Benefits of MSME Registration MSME registration
will give you a host of monetary and non-monetary
benefits. Amongst the many benefits are lending
from lenders on a priority basis, lesser interest
rates, as low as 1 to 1.5 are given, along with
availability to greater credit. Market assistance
from the government and export promotion, capital
and other types of grants for infrastructure
development, exclusive purchases and sheltering
from competition and technology and quality
up-gradation support. In the initial years of the
business, one can get tax rebates. The registered
enterprises also have been provided with a
Barcode subsidy. Owners are also allowed credit
for minimum alternate tax (MAT) to be carried
forward for up to 15 years instead of 10 years.
Some government tenders are specifically open for
registered MSMEs, which reduces competition and
allows the sector to grow. Moreover, the ministry
of MSME protects the owners from delay in
payments by the buyers and ensures the right of
interest on delayed payment through arbitration
and conciliation and settlement of a dispute in
minimum time. Specific subsidy such as based on
NSIC performance and Industrial Promotion Subsidy
(IPS) can also be availed by the registered
MSMEs. The Way Ahead In your business journey,
whenever you feel the need to expand or buy new
business equipment or need cash to fuel growth,
you would be looking for easy business loans. As
an MSME, one of the easiest ways you can secure a
loan is from us at ZipLoan. Minimum paperwork
needs to be done for our quick credit evaluation.
Based on that, we process a loan in just three
days to help you in fulfilling your business
dreams. All the best!
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