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About This service

MSME stands for Micro, Small and Medium enterprises and SSI for Small Scale Industries. This sector has emerged as highly dynamic and vibrant in the Indian Economy over the decades. Also, it has created large employment opportunities at lesser capital cost when compared to larger industries. It has proven to be a boon in rural and urban areas by reducing the regional imbalances with an assurance of equal distribution of income and wealth. The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector. The Act seeks to facilitate the development of these enterprises as also enhance their competitiveness. The Act also provides for a statutory consultative mechanism at the national level with balanced representation of all sections of stakeholders, particularly the three classes of enterprises; and with a wide range of advisory functions. SSI registration is not a mandatory requirement for a small business in India. However, businesses that have SSI registration can avail some benefits, incentives or support given either by the Central or State Government. There is no difference between MSME Registration and SSI Registration. Earlier MSME Registration was known as SSI Registration.

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Includes/exclude

in service

  • Preparation and submission of application of MSME registration
  • Any other registration services like GST registration, Prop./partnership firm registration, company/LLP registration, PAN card application is not included in this

Whom

it’s beneficial

  • Micro, Small and Medium-sized Enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI registration under the MSMED Act
  • 40% of the total advances must go to micro and small enterprises involved which are in manufacturing having an investment in plant and machinery up to Rs.10 lakh and for service enterprises having the investment in equipment up to Rs.4 lakh.
  • 20% of the total advance to micro and small enterprises should go to manufacturing enterprises that have above Rs.10 lakh till Rs.25 lakh investment in the plant and machinery and for service enterprises that have investments in equipment above Rs.4
  • Advances like : capital subsidy, security deposit waived off, concession in electricity & water bills, subsidy for ISO certification, preferences in Govt. Tenders, subsidy in patent registration etc...

Process

  • Purchase Plan
  • Provide information, details and documents as needed
  • Get the application already filed for sign and verification
  • submit the singed application
  • get MSME registration certificate

Information/Documents

needed

  • KYC Documents
  • Business Address Proof
  • Copies of Sale Bill and Purchase Bill
  • Partnership Deed/ MoA and AoA
  • Copy of Licenses and Bills of Machinery Purchased

Other Information

 Micro, Small and Medium sized enterprises in both the Manufacturing and Service sector can obtain MSME registration or SSI registration under the MSMED Act. 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. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and other support from the government sector is provided. Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 10 Crores) should seek registration with the Director of Industries of the concerned State Government.

Objectives of the Registration Scheme

They are summarised as follows:

To enumerate and maintain a roll of small industries to which the package of incentives and support are targeted. To provide a certificate enabling the units to avail statutory benefits mainly in terms of protection. To serve the purpose of collection of statistics. To create nodal centres at the Centre, State and District levels to promote SSI.

The following form basis of evaluation:

The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under drug control order, NOC from Pollution Control Board, if required etc. Unit does not violate any locational restrictions in force, at the time of evaluation. Value of plant and machinery is within prescribed limits. Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

Frequently Asked Questions (FAQ’s)

What are a Micro, Small and Medium Enterprises?

The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:

  • A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
  • A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
  • A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

Who can apply for MSME/SSI Registration?

 An Entrepreneur with a valid Aadhar Card number can apply for the MSME/SSI Registration. It is mandatory to quote aadhar to obtain the certificate.

When is the MSME Certificate issued?

After filing online MSME application form, MSME Registration Certificate will be issued immediately at email.

Sample MSME Certificate.

What are the Benefits of MSME/SSI Registration?

Although the government has not mandated registration of any MSME. t gains various privileges prior issue of the certificate. The same are listed below:

  1. Collateral Free Loans from Banks:

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme.

  1. Reservation Policies to manufacturing/production sector:

Reservation of items for exclusive manufacture in SSI sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this sector. 

  1. Easy to get Licenses and approval:

It has made very easy for enterprises that are having MSME Certificate to obtain Licenses, approvals and registrations on any field for their business from the respective authorities as they can produce the Certificate of MSME Registration while making application.

4.50% Subsidy for patent registration:

Enterprises that have MSME Registration Certificate can avail 50% subsidy for patent registration by making application to respective authority.

  1. 1% exemption on Interest rate on OD:

Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on OD as mentioned in the scheme.

  1. Excise Exemption Scheme:

Enterprises that have MSME Registration can enjoy Excise Exemption in the initial year of business, as mention in the Excise Exemption scheme by Government and depending on business activity.

  1. Octroi Benefits:

The scheme of refund of octroi provided under the Package Scheme of Incentives, 1993 will be included in the new Scheme up to 31-3-2006 on the same pattern. Where account-based cess or other levy is charged instead of or in lieu of octroi, such change will also be eligible for refund as in the case of octroi.

  1. Waiver of Stamp Duty and Registration Fees:

At present, IT units in public IT Parks are exempted from stamp Duty and Registration fees upto 31st March 2006. Now all new industrial units having MSME Registration and expansions will be exempted from payment of Stamp Duty and Registration fees.

  1. Exemption under Direct Tax Laws:

Enterprises that have MSME Registration can enjoy Direct Tax Exemption in the initial year of business, as mention in the scheme by Government and depending on business activity.

  1. Waiver in Security Deposit in Government:

The Ministry of Micro, Small and Medium Enterprises gives following benefits to enterprises that has MSME Registration while making application for Government Tenders: 

1. Issue of tender sets free of cost.

2. Exemption from payment of Earnest Money.

3. Waiver of Security Deposit upto the Monetary Limit for which at the unit is registered.

What support is provided by the Ministry to improve quality of products produced by the MSME sector?

The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness. The primary objective of this activity is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National / International standardization Bodies. Under this Activity, MSME manufacturing units will be provided subsidy to the extent of 75% of the actual expenditure, towards licensing of product to National/International Standards. The maximum GOI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing /Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing /Marking to International standards. One MSME unit can apply only once under the scheme period.

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