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Every once in a while, the government wall introduce a new act or scheme to develop the country.
These can include anythingfrom small-scale projects to a complete overhaul of the system.
One such attempt by the government is that of the Micro, Small & Medium Enterprises Development (MSMED), which happens to be an act passed in the year 2006.
The act focuses on accelerating the development of the country, through the promotion of the small and medium scale businesses across the country.

It classifies businesses, i.e. micro, small and medium enterprises (MSME) into two distinct classes:

1. Manufacturing enterprises: Enterprises that manufacture or produce goods specified in Schedule-I of The Industries (Development and Regulation) Act, 1951 or employs plant and machinery in the process of value addition to the finished product which has a distinct name, use or character.
It is important to note that the Manufacturing enterprises are defined in terms of investment in plant and machinery.
The limits for investments are:
Micro Enterprise: Does not exceed 25 lakh rupees.
Small Enterprise: More than 25 lakh rupees but does not exceed 5 crores.
Medium Enterprise: More than 5 crore rupees but does not exceed 10 crores.

2. Service Enterprises: Enterprises that provide services and are also defined in terms of investment in equipment.
The limits for investment being:
Micro Enterprises: Does not exceed 10 lakh rupees.
Small Enterprises: More than 10 lakh rupees but does not exceed 2 crores
Medium Enterprises:More than 2 crore rupees but does not exceed 5 crores.

MSME registration certificate is not compulsory.

It is completely voluntary and exists for the government to monitor, build statistics and focus their support and incentive plans.
The benefits include lower rates of interest, excise exemption scheme, tax subsidies, lower rate on power tariff, capital investment subsidies,etc. MSME online registration facility is available.

With regard to the registration process, the details are as given below.
An application can be filed online using Udyog Aadhar Registration and can be verified using e-Aadhar OTP. Aadhar number is compulsory for msme registration certificate. Provisional registration is provided for the first 5 years if the business has not begun its operations. During the pre-operative time, bank loans can be sought along with application for various NOCs from regulatory bodies. After operations begin, permanent license can be acquired which has life time validity. MSME registration online has increased the outreach of this program.

Documents required For MSME Registration:

1. Business Address Proof
For self owned properties: lease, property tax, possession letter or allotment letter must be provided.
For rented properties: Rent receipt and NOC from the land owner must be provided along with utility bills or any document to prove the landlord’s ownership of the property.
2. Partnership Deed/ Memorandum of Association and Articles of Association must be provided if the business is a partnership firm. Memorandum of Association(MoA) and Articles of association(AoA) is to be submitted if the business is run by a
3. Sale Bill and Purchase bill(copies)
4. Licenses and bills of machinery acquired(copies)

Why is MSME Online Registration important?

MSME Online forms the engine of the Indian economy with a significantly large GDP contribution. The sector produces goods and services worth over 20 lakh crore providing to millions of people a better standard of living, reducing unemployment and poverty’. The sector provides employment to 60 million people via 28+ million enterprises.
MSMEs constitute more than 90% of total enterprises and have proven to be resilient in times of hardship and recession with its innovation.
In all, the government of India’s effort to provide benefits and concessions to MSME along with helping people with msme online registration facilities reduces the hassles and improves delivery of good governance and a better India.

MSME (Udyog Aadhar) Registration – 999/-

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