MSME Registration – better known to us as MSME is Micro, Small and Medium Enterprises. It’s a separate ministry under the Government of India. Let us try to know –  What is MSME Enterprises? MSME enterprises of the manufacturing sector can be categorized on the basis of the amount invested in plant and machinery – Micro enterprises – Investment less than ₹ 25 lakhs in plant and machinery Small enterprises – Investment between ₹ 25 lakhs and ₹ 5 crores in plant and machinery Medium enterprises – Investment between ₹ 5 crores and ₹ 10 crores in plant and machinery MSME enterprises in the service sector can be categorized on the basis of the amount invested in equipment- Micro enterprises – Investment less than ₹ 10 lakhs Small enterprises – Investment more than ₹ 10 lakhs but less than ₹ 2 crores Medium enterprises – Investment ₹ 2 crores but less than ₹ 5 crores  Why the MSME Enterprise Registration is beneficial? MSME Registration is beneficial in the following terms – o Banks would prefer priority lending to business or profession having MSME registration and this is as per the directives of Reserve Bank of India o Securing Loan would be easier and at times could be without collateral security o Income Tax exemption o This scheme allows collateral-free loans of up to 50 lakhs for individual MSMEs o Market assistance from the government and Export Promotion o Capital and other grants from the Government for improvisation of the infrastructure and support for entrepreneurial development o Reimbursement of ISO Certification - ISO 9000, ISO 14001 and HACCP certifications o Exclusive purchases and sheltering from the competition o Technology and quality up-gradation support to MSMEs  What is the registration process for MSME? Business can register to MSME under a couple of stages – o Business is in the planning stage o Business is in operations Aadhaar number is compulsory for registering under the MSME act. Application is to be filed online using Udyog Aadhaar Registration, and this can be verified using e-Aadhaar OTP. If the business is not in the operations stage, then initial registration for 5 years is granted and this helps the business to apply for the loan and gather initial funds to start. Once the entity commences its business, with provisional registration they can apply for permanent registration. The validity of permanent registration is a lifetime.  What are the documents required for MSME Registration? The following documents are required for the registration – 1. AADHAAR Card of the proprietor or authorized signatory. If the company is not a proprietary then authorization letter would be required, signed by other company members 2. Business Address Proof o If the premise is self-owned– Allotment letter, possession letter, lease deed or property tax receipt. If there is a municipal license in the business name or in the name of the proprietor, partner or director of the business, no other possession document is required to be submitted. o If the premise is rented– Rent receipt and a no-objection certificate from the landlord is required. Also, any utility bill or document evidencing the landlord’s ownership is to be submitted. 3. Copies of Sale Bill and Purchase Bill It is required to submit a copy of the sale bill related to each final product that the business will supply. Also, for each raw material that the business will purchase, a purchase bill has to be submitted. 4. Partnership Deed/ MoA and AoA o If the business is a partnership firm, it has to submit its partnership deed. If the partnership firm is registered, it has to submit the registration certificate also. o In the case of a company, a copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted. With it, a copy of the resolution passed in general meeting, and a copy of board resolution authorizing a director to sign the MSME application is also to be submitted. 5. Copy of Licenses and Bills of Machinery Purchased In a few cases, the applicant has to submit a copy of the industrial license which is to be obtained by giving an application to Govt. of India. Further, all bills and receipts related to purchasing and installation of plant and machinery have to be kept safe and required to be submitted on demand. If you have any queries, feel free to connect at +91 8777282427 or drop me an mail at connect@legalwazir.com