How to obtain MSME/SSI Registration in India?
Micro, Small, and Medium Enterprises are commonly known as MSME, or Small-Scale Industries (SSI) are governed by the Ministry of Micro, Small, and Medium Enterprises under the Micro, Small, and Medium Enterprises Development (MSMED) Act 2006. MSME/SSI registration in India is vital, as it allows industries to take advantage of the schemes provided by the Government of India.
Overview of MSME/SSI Registration in India
Micro, Small, Medium Enterprises (MSME), or Small-Scale Industries (SSI) contributes mainly to the country's socio-economic growth. MSME/SSI is governed by the Ministry of Micro, Small, and Medium Enterprises under the Micro, Small, and Medium Enterprises Development (MSMED) Act 2006. MSME/SSI registration in India is necessary for enterprises as it allows them to take advantage of government schemes.
The contribution of MSME/SSI is 45% employment of the total industrial jobs in India, more than 50% of total exports are by MSMEs/SSIs, MSMEs/SSIs are 95% of all industrial units in our country and as per the data provided by the official website on 'msme.gov.in' more than six thousands of different kind of products are mass-produced by MSMEs in India.
MSMEs/SSIs are classified into two parts:
- Manufacturing Enterprises.
- Service Enterprises.
Standards for MSME/SSI Registration in India
Under the Atma-nirbhar Bharat Abhiyan Economic Package announced by the finance ministry, the distinction between the manufacturing and service enterprises are removed. Enterprises involved in both the manufacturing and service sectors' annual turnover and investment amount are made similar. The revised MSME standards are:
Who Issues the Certificate for MSME/SSI Registration in India?
The MSME/SSI registration in India is done through an online process. Every state has a separate division for MSMEs, the District Industries Centre (DIC) is in charge of MSME/SSI registration. The authority to issue an MSME/SSI certificate is the DIC. The MSME number is also issued by the DIC along with the MSME registration certificate.
Advantages of MSME/SSI Registration in India
- Low-Interest Rate
The banks provide a low-interest rate to registered MSME/SSI compared to other regular loans. Banks provide around 1 to 1.5% interest rate cheaper than any other regular loans provided by the banks.
- Tax Subsidies
There is various type of subsidies for registered MSMEs/SSIs provided by the Government of India.
- Minimum Alternate Tax
Credit for minimum alternate tax is allowed for registered MSMEs/SSIs to be carried forward for fifteen years instead of ten years.
- Government Contracts
The government of India gives several contracts only to the registered MSME industries.
- Easy Access to Credit
Easy access to credit is provided for MSME industries by the Government of India.
- Reimbursements
After the registration and cost receiving a patent is done there are many reimbursement and concessions are made available by the Government of India under the MSME Act.
- Higher Preference by the Government
The government gives high preference to registered MSMEs for Government certification and License.
- One Time Settlement Fee
There is a one-time settlement fee for all non-paid amounts of MSMEs.
An entity qualified to apply for MSME/SSI Registration in India.
Anyone who effectively completes one or several of the standards cited below is competent and qualified to apply for MSME/SSI registration in India:
- Anyone who is part of a Hindu Undivided family;
- Anyone who has a limited liability partnership (LLP);
- Anyone who possesses a partnership firm having another party as his/her partner;
- Anyone who has a sole proprietor firm;
- Anyone who owns a One Person Company;
- Anyone who owns a private limited company;
- Anyone who owns a production company;
- Anyone who has co-operative societies.
Required Documents for MSME/SSI Registration in India
As per the application form for MSME/SSI Registration in India here is the list of documents and information required:
- Verified copy of applicants Aadhar Card
- Owners name as mentioned in the Aadhar card and PAN Card
- Applicants social category
- Applicants gender
- To show if the applicant is disabled or not, the applicant's physical status must be submitted.
- The name of the enterprise
- Which type of enterprise does the applicant wants to start; an applicant can select a kind of enterprise from the Form.
- PAN number
- The registered address of the enterprise
- Location of the registered enterprise's plant
- The incorporation date of the enterprise.
- Bank details
- The applicant has to mention the kind of enterprise if it is a manufacturing or service enterprise.
- NIC code
- Information about the total number of employees working in the applicant's organization
- Investment details in machinery and plant.
The procedure of MSME/SSI Registration in India
- MSME Registration Application Form
All the required information and details in the MSME registration application form must be filled by the applicant, and the registration form is submitted to the concerned department. The MSME registration application form can be filed on an online portal or offline as desired by the applicant.
- Prepare All Required Documents
All the required information and documents must be collected and submitted as per the form requirements by the applicant. This process of collecting required documents and submitting may take one to two days.
- Filing of the MSME Application
All the necessary documents as per the registration form must be uploaded by the applicant and the application form must be submitted to the MSME registrar. The verification of the documents, details, and information provided by the applicant will be done by the regulating authorities as per the MSME Act. The confirmation of the documents and information will take around one to two working days.
- Approval of Application and Issuance of Certificate
After the authorities verify all the documents, details, and information provided by the applicant and the authorities are satisfied by the submission, the applicant company is registered under the MSME Act.
Conclusion
Micro, Small, and Medium Enterprises are commonly known as MSME, or Small-Scale Industries (SSI) are governed by the Ministry of Micro, Small, and Medium Enterprises under the Micro, Small, and Medium Enterprises Development (MSMED) Act 2006. MSMEs or Micro, Small, Medium Enterprises contribute mainly to the socio-economic development of the country. The MSME registration in India is done through an online process. Every state in India has a separate department for MSMEs/SSIs.
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