MSME refers to Micro, Small & Medium enterprises. It is a scheme of government that mainly targets providing benefits to medium and small-scale entrepreneurs in order to boost their businesses . It was introduced by the Government of India in agreement with the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.
The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding an MSME.
REVISED MSME CLASSIFICATION
|Investment||< Rs 1 crore||< Rs 10 crore||< Rs 50 crore|
|Annual turnover||< Rs 5 crore||< Rs 50 crore||< Rs 250 crore|
MSME REGISTRATION PROCESS
Any company that comes under the category of MSME needs to ensure they are registered under the MSME category. This registration requires a few documents, personal details, details about the individual and so on.
The following documents are required for the MSME registration process –
- Aadhar number of the applicant
- Name, gender, PAN number, email id, and mobile number of the applicant.
- PAN, location, and address of the organization.
- The number of employees and the date, you are planning to start your business.
- Bank account number and IFSC code
- The basic business activity of the enterprise
- NIC 2 digit code
- Investment in plant and machinery/equipment
- MoA and AoA
- Copies of Sales Bill and Purchase Bill
MSME registration is to be done in the government portal of udyamregistration.gov.in. The registration of MSMEs can be done under the following two categories in the portal –
- For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and
- For those having registration as UAM and For those already having registration as UAM through Assisted filing.
However, it was announced by the government of India on 15 June, 2021 that the process of registration for Micro, Small and Medium Enterprises (MSMEs) has been eased by the Centre to foster entrepreneurship and generate large employment opportunities in the country.
As per the relaxed norms, Only Pan card and Aadhaar number will be required for MSME registration. These enterprises are no longer required to furnish large number of documents to get themselves registered as MSME. After getting registered, the MSME unit will be getting priority and finance
Although getting MSME registration is not mandatory but it is always suggested to small and medium enterprises to get it done as it provides a variety of benefits such as better MSME loan structure, subsidise rates, government help and a lot more.