The Significance of MSME in India

India, a densely populated country, is home to a significant portion of the population with moderate financial capabilities. To maintain a healthy state of the economy, the Government of India promotes the growth and development of Micro, Small, and Medium Enterprises (MSMEs) under the legal framework of the MSMED Act 2006. This industrial sector serves as a cornerstone, providing nourishment for the country's economic health.

Note: India’s MSME sector plays a crucial role, covering 45% of Total Industrial Employment, 50% of Total Exports, and comprising 95% of all Industrial Units, manufacturing over 6000 types of products (as per msme.gov.in).

Based on their size, MSMEs are classified into three categories:

• Micro Enterprise: Requires investment of less than INR 25 lakh for the manufacturing sector and less than INR 10 lakh for the service sector.
• Small Enterprise: Requires investment of less than INR 5 crore in the manufacturing sector and INR 2 crore in the service sector.
• Medium Enterprise: Requires investment of less than INR 10 crore in the manufacturing sector and INR 5 crore in the service sector.

The MSME sector in India encompasses various types of businesses, including Proprietorships, Hindu Undivided Family, Partnership Firms, One Person Companies, Limited Liability Partnerships, Private Limited Companies, Limited Companies, Producer Companies, Associations of Persons, Co-Operative Societies, and other undertakings.

While MSME Registration is not mandatory in India, units in this industry should consider getting legally registered to avail a range of benefits.

• Exclusive access to tenders issued by the Government for MSMEs.
• Various concessions available for registered MSMEs on patents, including reduced patent-making costs, construction costs of plants, and utility bill payments.
• Eligibility for various tax rebates applicable to MSME units.
• Provision for availing bank loans at lower interest rates, typically around 1 to 1.5% cheaper than the normal slab.
• Greater preference for obtaining Government licenses and certifications.
• Permission to carry forward Credit for Minimum Alternate Tax (MAT) for up to 15 years, compared to the standard 10 years.
• Access to a range of Government support services for MSMEs, such as marketing assistance, technical and managerial consultation, various training programs, and promotional events.

Businesses operating under MSME should prepare/have the following documents for MSME Registration (Permanent Registration):

• Personal and Contact Information of Managing Authorities, including Name, Social category, and ID Proofs (PAN and Aadhaar Card compulsory).
• Business Details, such as Name, Type, Area of Activity, Assets, Bank Account and Funds, List of Employees, etc.
• Proof of Business Address.
• If you own the Registered Office, provide property papers.
• If the Registered Office is rented/leased, provide the legal agreement of the same.
• Copies of Sales Bill and Purchase Bill.
• Partnership Deed/Memorandum of Association or Articles of Association.
• Copy of Licenses (Not required for firms listed in Schedule-III of Industrial Licensing Exemption Notification) and Bills of Machinery purchased.
• Statutory and Administrative Clearance Papers, as applicable for the industry.

• Consultation
• MSME Registration Application Preparation and Submission
• Dispatch of MSME Certificate to Client

1. Provide Information for Application: You must furnish the required information and documents for MSME registration, including personal details, contact information, organization particulars, and bank details.
2. Application Submission: Based on the information and documents provided, we will prepare your Registration Application. We will keep you updated on the progress and request any additional information or assistance as necessary. Once the application is accurately prepared, we will submit it on your behalf and notify you accordingly.
3. Application Verification: After submitting your documents to the MSME Registrar, they will be reviewed. If deemed correct, your application will be approved. Upon approval, your MSME certificate will be issued.
4. CONGRATULATIONS!! Your MSME Registration is complete, and we will deliver the Registration Certificate to you.