Before discussing the MSME registration, let’s see what MSME is. “MSME” stands for Micro, Small, and Medium Enterprises. They are also known as SSI or small-scale industries. In a developing country like India, MSMEs act as an engine that helps in the growth of the economy and promotes development in the economy.

According to the survey, the MSME sector contributes to 45% of Total Industrial Employment. Also, it has 50% of Total Exports and 95% of all industrial units in the country. More than six thousand types of product manufacture in these industrial units. That’s why these industries are considered as the backbone of the Indian economy.

Provisional Small Scale Industry (SSI) Registration

To obtain MSME registration, first of all, you have to apply for a provisional SSI registration certificate. This certificate is for the pre-operation period i.e. when you have not started your operations but have a business plan. It also helps the MSME unit obtain term loans and working capital. It is valid for up to five years.

One can apply for it through online as well as offline with the necessary documents.

Important Documents:

  • Three passport size photographs of proprietors or partners or directors.
  • In case of a partnership, it requires the photocopy of the partnership deed. The partnership doesn’t have to be registered under the Partnership Act.
  • In the case of a private company, it requires a copy of the MOA and AOA along with the certificate of incorporation. Also, a copy of the resolution of the company authorizing one of the Directors of the company to sign the application form and also appear for the interview.
  • Copy of NOC from the landlord with proof of legal possession (rent receipt), Proof of Ownership, Proof of legal possession (rent receipt), and the Power Load Authorized by the connection holder to the applicant.
  • Consent obtained for the establishment of the unit from the Delhi Pollution Control Committee. It is important for provisional registration.

Some of the documents may differ because each state has different requirements for documents. The above-given documents are minimum requirements which are to be submitted.

Benefits of MSME Registration:

  1. It has a benefit that bank loans become cheaper as the interest rate is very low i.e. around 1 to 1.5% which is much lower than interest on the regular loans.
  2. Under MSME, various tax rebates are offered to the owners.
  3. Credit for minimum alternate tax (MAT) is also allowed. It can be carried forward for up to 15 years instead of 10 years
  4. For MSME industries, many government tenders are especially open for them.
  5. They can get credit easily.
  6. Many rebates and concessions are available for them which reduces the cost of getting a patent or setting up of the industry once they are registered.
  7. Business registered under MSME is given a higher preference for government license and certification.
  8. There is a One Time Settlement Fee for non-paid amounts of MSME.

If you want to apply for Company incorporation, you can go with Company Registration Online

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