<strong>Documents Required To Apply For MSME Registration</strong>

Introduction

Industries are the chief supporters of any country’s economy, especially MSMEs, which are also referred to as Small Scale Industries. In India, MSMEs are provided various benefits to ensure their orderly development. The Indian government has introduced a framework for registering and classifying small industries into three different categories i.e. Micro, Small and Medium. MSMEs can therefore register in their respective categories to avail the benefits granted by the government. This article will give you an in-depth understanding of eligibility criteria, documents required and the registration process for MSMEs.

Classification of MSMEs

The MSME classification was recently revised by the Government. The revised classification is based on the investment and turnover of the concurrent entity, which is as follows:

MSME Category	Investment in P&M	Annual Turnover
Micro	Upto Rs. 1 Cr	Upto Rs. 5 Cr
Small	Upto Rs. 10 Cr	Upto Rs. 50 Cr
Medium	Upto Rs. 50 Cr	Upto Rs. 250 Cr

MSME – Udhyam Registration

Registration of MSMEs is also known as Udhyam Registration and the government portal through which registration is applied is called the Udhyam Portal. All the entities which satisfy the criteria can apply for registration through this portal. The registration process is fully digital. There is no mandatory requirement for MSMEs to obtain this registration. However, registration is advised because it provides various benefits such as tax benefits, credit facilities and many more..

Documents Required

As previously mentioned the registration process is fully digital and therefore there is no requirement for uploading any documents. However, you still need the following information and documents:

• Aadhar Card
  • Proprietorship Firm: Aadhar number of the proprietor
  • Partnership Firm: Aadhar number of the managing partner
  • HUF: Aadhar number of the Karta
  • Company/LLP: Aadhar number of the organisation  or authorised signatory
  • Cooperatives/Societies/Trusts: Aadhar number of the organisation  or authorised signatory

• PAN Card
• GSTIN if applicable
• Identity and Address Proof of the Applicant.
• Photograph of the Applicant
• Following Documents related to the Business entity:
  • Address Proof of working premise.
  • In the case of a Self-owned property, a sale deed is required
  • In the case of rented property, a rent Agreement along with NOC from the owner is required.
  • Bank-related documents.
  • In the case of a Partnership, a firm partnership deed is required.

Eligibility Criteria

All the entities are eligible for MSME registration, irrespective of their engagement in manufacturing, service, wholesale, retail or other processes provided they fulfil the MSME classification criteria. The eligibility for MSME registration is solely dependent on the annual turnover and investment of the concerned entity. Therefore all the entities are eligible for MSME registration including the following:

1. Individuals, Startups, Entrepreneurs, Owners of businesses
2. Private and Public Companies
3. Sole proprietorship and Partnership firm
4. Limited Liability Partnerships (LLPs)
5. Self Help Groups (SHGs)
6. Societies and Co-operatives
7. Trusts

Benefits of MSME Registration

The registration of an entity as an MSME through the Udhyam portal provides various advantages. Some of the advantages are mentioned below:

1. Preferencing: MSME can undertake government tenders with ease as the Udyam Portal is integrated with the e-Marketplace, where central as well as state governments are posted.

2. Tax Benefits: Through this registration businesses can get direct tax exemption during their early year.

3. Collateral Free Loans: A government authorised collateral free credit is made available to all small & micro businesses, which ensures funds to micro and small enterprises.

4. Lower Interest Rate: Enterprises registered under MSME are given the OverDraft benefit of 1%. They can also have the benefit of lower interest rates for business loans as well.

5. Reimbursement for Certification: The registered MSME can seek reimbursement of the cost of ISO certification and various other eligible certifications.
6. Protection Against Delayed Payments: MSMEs are empowered to collect interest on the deferred payments from the buyer’s side.

7. International Trade Fairs Benefits: Various benefits are provided concerning the tariffs are provided to registered MSMEs. They are given preferential treatment for International Trading.

8. Stamp Duty And Registration Fees Waiver: All new industrial units containing MSME Registration & expansions will be exempted from payments of Stamp Duty & Registration fees in India.

9. Subsidies: All Enterprises, having MSME Registration can have the following subsidies as per the scheme:
   1. Bar Code Registration subsidy
   2. 50% subsidy for patent registration
   3. concessional electricity bills
   4. NSIC Performance And Credit Rating Subsidy.
   5. Industrial Promotion Subsidy
   6. 15% CLCSS Subsidy for purchasing plant & machinery

Cost of MSME Registration

There are no government fees for the MSME registration. The government has made this framework keeping in mind the budget constraints of MSMEs. This zero-cost registration process ensures the development of the MSME sector and promotes entrepreneurship which results in the overall development of the country, through boosted economy and employment generation.

However, there are various professional service providers, who assist in the registration process and make it smooth and hassle-free for you. Their service cost ranges from Rs. 2000 to 10000, which depends on various factors such as expertise and experience of professionals.