MSME Registration represents small, medium and micro enterprises and any business that falls under any of these three categories is considered MSME. They are the backbone of any economy and are the engine of economic growth that promotes equitable development for all. Therefore, to support and encourage MSMEs, the Indian government provides various support, schemes and incentives under the MSMED law. Registration under the MSMED Act is required to receive similar benefits from central or state government and the banking sector. This registration is known as MSME registration.
Small, medium and micro enterprises in the manufacturing and service sector may obtain MSME Registration under the MSMED Act. Although MSME registration is illegal, it is beneficial for the business as it offers various benefits such as low interest rates, exit schemes, tax subsidies, energy tax subsidies, capital grants and other support. IP RANI can help your business get MSME Registration to get more benefits.
Benefits of registration
MSME registration is not a legal requirement. However, the MSME registration process in India is designed to provide superior benefits to all types of businesses. Upon registration, any business is eligible for the benefits provided under the MSMED Act. Other benefits from Central Government include easy bank financing (advanced interest rates), low interest rates, a tax exemption scheme, exemptions under certain tax taw and legal support.
The national government and union areas also followed the package of resources and incentives for MSMEs. Other benefits offered by the national government to MSMEs include the construction of special industrial facilities, tax subsidies, energy tax subsidies, capital grants and other assistance.
Both the institution and the state, whether under the law or otherwise, refer to their incentives and funding packages usually to registered units. Bank aws, property law and direct tax law include the word MSME in their exemption notices. Therefore, a registration certificate issued by the registration authority is considered proof of MSME and is required to obtain benefits approved by MSMEs. Some of these are described below
- Reduction of interest rate loans
- Free loans from banks
- Beneficial booking policies in the manufacturing / production sector
- Ease of licensing, registration and accreditation.
- CLCSS eligibility (capital linked capital scheme)
- Special consideration of international trade
- Government security withdrawals (helpful when participating in tenders)
- Electricity credit permit
- Stamp duty and registration fee
- ISO certificate refund
- Specific tax laws govern exemptions
- Interest rate release in OD
- NSIC funding and credit performance
- Copyright subscription subsidy
- Barcode registration subscription
- Eligibility for IPS support
Required Documents for Registration
In the event that the property owner is the owner of the property, a receipt for the property tax, title deed, assignment letter or title deed will be required. No further document is required to be submitted if there is a municipal license on behalf of the owner or business owner, or one of the partners or directors of the business. With the advent of the leased property, NOC (no certificate of opposition) and rental receipt is required from the landlord. In addition, an electricity or water bill will be required (indicating the use of resources and property ownership).
In the event that the business is a company, a copy of the ‘MoA’ (Organization Memorandum) and ‘AoA’ (Organizational Documents) and certificate of incorporation must be submitted. A copy of the decision of the ordinary meeting authorizing one of the directors as signed and required to be sent. In the case of co-operatives, the co-operative title needs to be submitted and if it is a registered co-operative, a copy of the registration certificate also needs to be submitted.
Licenses and Bills
In addition to the obligatory documents mentioned above, there are certain documents that need to be submitted when required such as purchase bills and receipts related to plant and equipment implants. If applicable, a copy of the industrial certificate received by the property owner also needs to be submitted.