What is an MSME ?

The MSMEs play a vital role in the overall growth of industrial economy of the country. MSMEs come under the Ministry of Micro, Small & Medium Enterprises and are required to be registered to avail benefits under the Micro, Small and Medium Enterprises Development (MSMED) Act. MSMEs are classified based on their annual turnover. MSME registration is highly important, as it enables these enterprises in availing benefits from various government initiated schemes. MSMEs are classified in two categories, such as manufacturing and service enterprises.

ClassificationManufacturing and Service Enterprises
MicroInvestment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore
SmallInvestment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore
MediumInvestment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore

Jen Source helps MSMEs to Reimagine / Restore, Stabilise and Grow their businesses

in a Professional, Systematic and Sustainable manner

Who can apply for MSME Registration ?

Jen Source MSME Application
  • Proprietors
  • Hindu Undivided Family
  • Partnership Firm
  • One Person Company
  • Limited Liability Partnership
  • Private Limited Company
  • Limited Company
  • Producer Company
  • Any association of persons
  • Co-operative societies or any other undertaking can obtain MSME registration in India

Documents Required for Registration ?

MSME Documents

  • Aadhaar card
  • Rent agreement
  • Property paper
  • Cancelled Cheque
  • Company Registration i.e., Sale or Purchase Bill and PAN card
  • Business Address Proof
  • Partnership Deed
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Copies of Licenses and Bills of Machinery Purchased

Steps for Registration:

  • The form for registration shall be as provided in the Udyam Registration portal.
  • There will be no fee for filing Udyam Registration
  • Aadhaar number shall be required for Udyam Registration
  • In the case of a Company or a Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the organisation or its authorised signatory shall provide its GSTIN and PAN along with its Aadhaar number
  • No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration
  • Whoever intentionally misrepresents or attempts to suppress the self-declared facts and figures appearing in the Udyam Registration or updating process shall be liable to such penalty as specified under section 27 of the Act
  • All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July 2020
  • All enterprises registered till 30th June 2020, shall be re-classified in accordance with this notification
  • The existing enterprises registered prior to 30th June 2020, shall continue to be valid only for a period up to the 31stday of March 2021
  • An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration

For more details Checkout these links:

MSME Samadhaan

MSME Sampark

MSME Sambandh

Benefits of Registration:

  • MSME registration helps in getting government tenders
  • Under bank loan, 15% import subsidy on fully automatic machinery
  • Becomes easy to get licenses, approvals and registrations, irrespective of field of business
  • Compensation of ISO certificate expenditure
  • Helps in getting low interest rates
  • Registered MSMEs gets tariff subsidies and tax and capital subsidies
  • Gets exemption under Direct Tax Laws

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only.