MSME Registration In India: Procedure, Documents Required: MSME (micro, small, and medium enterprise) industries are the backbone of the Indian economy. As per msme.gov.in, the MSME sector contributes to 45% of India’s Total Industrial Employment, 50% of India’s Total Exports. Therefore, then MSME industries grow, the economy of the country grows as a whole and flourishes.
MSME definition is Micro, Small and Medium Enterprise, which was introduced in agreement with the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 by the Government of India. MSMEs are critical contributors to the country’s socio-economic development. The role of msme in indian economy is important, as the MSMEs are key contributors to the socio-economic development of the country. The initiative of MSME started functioning in 2006 to create a competitive environment and encourage small businesses to ensure speedy development and boost the economy.
MSME Registration In India: Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained as it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.
Eligibility for MSME Registration
The distinction between the manufacturing and services enterprises has been removed by making the investment amount and annual turnover similar for enterprises engaged in both the sectors.
|MSME – Merged Criteria: Investment and Annual Turnover|
|Sector/Enterprise Type||Micro Enterprise||Small Enterprise||Medium Enterprise|
|Manufacturing & Services Sector, Both||Investment less than Rs. 1 croreTurnover less than Rs. 5 crore||Investment less than Rs. 10 croreTurnover up to Rs. 50 crore||Investment less than Rs. 50 croreTurnover up to Rs. 250 crore|
Registration Process For MSME
MSME registration can be done online as well as offline. Following is the process of MSME registration
Applicants will be asked to pay an MSME registration fee of Rs 1,999. Payment can be made online.
Documents required for MSME Registration Online
- Aadhaar card
- Rent agreement
- Property paper
- Cancelled Cheque
- Company Registration i.e., Sale or Purchase Bill and PAN card
Business Address Proof
For self-owned premise: Lease deed, property tax receipt, possession letter, allotment letter, etc.
For rented premise: NOC from the landlord, rent receipts, utility bills or document evidencing the landlord’s ownership, etc.