Documents Required for MSME Registration in India

MSME registration can be obtained by startups, small and micro enterprises with the government of India. The enterprises or companies are required to make a declaration regarding the investment they make and also provide Adhar card for Udyog Aadaar registration.

India is a developing country, and hence MSME or SSI Enterprises are the backbone of Indian economy and are also leading to economic growth at a pace which is increasing day by day.

MSME stands for micro, small and medium-sized enterprises and they operate both in manufacturing and service sector of the economy, and hence both the enterprises working in the service sector or the manufacturing sector can register themselves under MSMED, Act 2006.

Though it is not necessary to register one's company under MSMED act, the support and incentives provided by the Govt. of India are one of the benefits which a smaller enterprise would want to attain.

What is MSME Registration?

The government of India has defined Micro, Small and Medium Enterprises as enterprises engaged in the business of manufacturing or production or in the business of providing or rendering services. The criteria for registering one's enterprise is different for service providing and manufacturing enterprises.

For companies or enterprises which are engaged in production or manufacturing goods:

Criterion of registering an enterprise with the govt. is bifurcated in two parts. Only those companies can be classified as a micro, small or medium enterprise which completes the criteria prescribed by the govt. Of India in MSMED Act, 2006.

  • Micro Enterprise: any company or entity whose investment in machinery and plant does not exceed 25 lakh
  • Small Enterprise: These entities have been defined as companies which have the investment in machinery and in its plant which is not less than 25 lakh and does not exceed five crore
  • Medium Enterprise: has more than five crores and does not exceed its limit of 10 crores

Criteria for MSME entities which deal in the service sector of the economy are:

  • Micro enterprise: The investment should not exceed Rs. 10 lakh.
  • Small enterprise: The investment made by the service providing entity which is rendering of services and whose investment in equipment does not exceed two crores and should be more than 10 lakh Rupees.
  • Medium Enterprise: This entities investment should be more than two crore rupees but should not exceed the limit of 5 crores. 

Documents Required to Register MSME

Documents to be provided by the enterprises are:

  • The person who is planning to register the enterprise with the govt. must have his Adhaar Card Number and PAN number with him, but if the company or the enterprise is a partnership firm at least one of the partner should have PAN and Adhaar card number.
  • If the company is a partnership firm they have to submit the copy of the partnership deed and if the firm is registered they need to submit registration certificate as well.If the registration is done for a company a copy of the memorandum of Association (MOA) and Articles of Association (AOA).
  • Copy of the registration of property where the enterprise office is situated.
  • The person planning to register the MSME need to make regarding the amount of investment made in the plant and machinery.

The Process of Registering Small Scale Industry

MSME registration for small-scale industry involves an easy and straightforward process.

  • The entrepreneur will be required to fill a simple form with the essential information. The form will be made available at the time of application.
  • Documents will be prepared according to the details mentioned above and any other form which is required while filling the form.
  • The application will be made with MSME registrar with the documents and once they are submitted with the registrar; the government executive take a look at the MSME registration application.
  • Once the executives are satisfied with the application, they will generate a certificate and will provide you with the mail.

 

More on: Key benefits of MSME registration in India

Who is Eligible for MSME Registration?

  • Any business entity such as proprietorships can do MSME registration; Hindu undivided family, one Person Company, Producer Company, co-operative society and partnership firm can apply for MSME registration and enjoy various benefits with it.
  • The only requirement for registration of MSME enterprise with the government is that the entrepreneur should have a valid Adhaar number to apply for registration of his company.

For companies or enterprises which are engaged in production or manufacturing goods:

Only those companies can be classified as a micro, small or medium enterprise which completes the criteria prescribed by the govt. Of India in MSMED Act, 2006.

  • Micro Enterprise: any company or entity whose investment in machinery and plant does not exceed 25 lakh
  • Small Enterprise: These entities have been defined as companies which have an investment in machinery and in its plant which shall not less than 25 lakh and does not exceed five crore
  • Medium Enterprise: has more than five crores and does not exceed its limit of 10 crores.

Criteria for MSME entities which deal in the service sector of the economy are:

  • Micro enterprise: The investment should not exceed Rs. 10 lakh.
  • Small enterprise: The investment made by the service providing entity which is rendering of services and whose investment in equipment does not exceed two crores and should be more than 10 lakh Rupees.
  • Medium Enterprise: This entities investment should be more than two crore rupees but should not exceed the limit of 5 crores.

Schemes Launched by Govt. for MSME

  • Credit Guarantee Fund Trust Scheme
  • Udyog Adhaar
  • Credit Linked Capital Subsidy Scheme
  • Women Entrepreneurship
  • Incubation