MSME Registration

What is MSME?


MSME stands for Micro, Small and Medium Enterprises. The MSMEs are key contributors to the socio-economic development of the any country. Opting for MSME registration is not a statutory mandate however it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc. The purpose of the MSME registration is to help micro, small and medium enterprises of India in growing further. These enterprises generate the majority of employment, industries and export in the country.

What are types of Micro, Small and Medium Enterprise?


MSME’s are classified into 2 categories:

  • Manufacturing Enterprise
  • Service Enterprise

Below is the classification in terms of investment:

Criteria                                   Micro enterprises Small enterprises Medium enterprise
Investment Less than ₹ 1 Cr Less than ₹ 10 Cr Less than ₹ 50 Cr
Annual turnover Less than ₹ 5 Cr Less than ₹ 50 Cr Less than ₹ 250 Cr

 

In the earlier classification, manufacturing sectors and service sectors were having different investment limits. The maximum limit of investment was higher for manufacturing sectors than service sectors. Since the previous differences have been removed in the new classification. The classification given in the above table is applied for both manufacturing as well as service sectors.

Benefits of MSME Registration


The reason behind MSME registration being appealing is the wide-ranged benefits. Here are the MSME registration benefits.

  • MSME registered enterprises can avail loans at lower interest rates than regular loans. Loans can be availed at an interest rate of as low as 1% to 1.5%.
  • MSME certificate holders can enjoy tax exemption under the MSME Act.
  • MAT or minimum alternate tax can be extended to 15 years from the regular 10 years.
  • MSME registered enterprises gets preference for government-issued license and certificates.
  • By getting registered under MSME, the cost of patenting and industry set up reduces due to various rebates and concessions.
  • Many government tenders are given to only MSME registered enterprises.
  • An MSME gets easy access to credit.

How you can Register your MSME through Tax Intel with below easy process


Step 1: Send the Required Documents as mentioned below & Information over the Email

Step 2: On booking service with us, your task is assigned to one of our dedicated professional.

Step 3: Our professional will prepare and submit application

Step 4: On successful submission of the application, we will send you MSME Certificate over the email.

Documents Required for the MSME Registration


To avail MSME registration, the following documents are required.

  • Aadhaar card copy
  • Copy of Property paper
  • Rent agreement copy
  • Cancelled cheque
  • Partnership deed (for partnership firms)
  • Memorandum of Association (for companies)
  • Articles of Association (for companies).
  • PAN
  • The social category of the applicant (General, SC, ST or OBC)
  • The physical ability of the applicant (disabled or not).
  • Some additional documents required for the registration are as follows.

Business address proof

  1. In case of Self-own property: allotment letter, property tax slip, possession letter
  2. In case of rented property: rent receipts and NOC from the property owner

Company registration proof

  1. Copy of sale bill
  2. Copy of purchase bill (of raw material)

License and purchase bills for machinery

  1. Copy of an industrial license
  2. Bills of purchasing machinery and installations.

What is the validity of MSME certificate?


MSME Certificate is valid for lifetime until you exceed the turnover criteria as defined in the MSMED Act 2006.

Process Completion Duration – Minimum 15 working days


Still, have some confusion or questions?

You may get in touch with our CA expert on 08118853567 or email ca@taxintel.in for free consultation and you may even contact us through live chat to know more about the services provided by us.