MSME stands for Micro, Small and Medium Enterprises. Article explains What are Micro, Small and Medium Enterprise, MSME Registration Process, Benefits of MSME Registration, Time Taken for MSME Registration, Validity of MSME Registration, Time for Updating MSME Registration and also contains FAQ’s on MSME Registration.

What are Micro, Small and Medium Enterprise?

MSME are classified into two categories:

1. Manufacturing enterprise; and

2. Service enterprise.

*Trading firms cannot take MSME Registration

They are defined in term of investment in Plant and Machinery/ Equipment as below

  MICRO SMALL MEDIUM
Manufacturing Enterprises Rs 25,00,000 Less than Rs 5,00,00,000 Less than Rs 10,00,00,000
Service Enterprises Less than Rs 10,00,000 Less than Rs 2,00,00,000 Less than Rs 5,00,00,000

MSME Registration Process

A single form is to be filed which can be filed online as well as offline.

Information/ Documents Required are: 

1. Aadhar number

2. Industry name

3. Address

4. Bank account details

5. Other common information

6. Investment in Plant & Machinery

7. List of Services provided/ Goods Manufactured

8. No of Employees. 

Benefits of MSME Registration

1. Low Bank Interest Rates.

2. MAT Carry forward for 15 years instead of 10 years.

3. Access to more Tenders which are open only to MSME sector.

4. More preference for government license and certification.

5. Subsidy on Patent Registration.

6. Bar Code Registration Subsidy.

Time Taken for MSME Registration

For online Registration it takes one day to complete the registration.

Validity of MSME Registration

MSME registration is valid for indefinite period as long as the business is running. There is no need of renewal of MSME.

Time for Updating MSME Registration

MSME Registration can be updated easily. Time taken to update MSME is almost one day. 

FAQ’s on MSME Registration

1. What is Udyog Aadhaar Registration or Udyog Aadhaar certificate ?

MSME is the old name which was changed to Udyog Aadhaar. So the MSME certificate and Udyog Aadhaar certificate are same.

2. Is Aadhaar Number mandatory for MSME Registration?

Yes.

3. Does new and existing business can apply for MSME registration?

Yes.

To know more about the MSME schemes. You may contact the author for further information at 9899595719 or taxwizersconsultant@gmail.com

Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.

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Company: TAXWIZERS CONSULTANT PVT LTD
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2 Comments

  1. Binoy Gupta says:

    The Govt has come out with the a circular that all MSME will have to be renewed….
    (1) All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st day of July, 2020.
    (2) All enterprises registered till 30th June, 2020, shall be re-classified in accordance with this notification.
    (3) The existing enterprises registered prior to 30th June, 2020, shall continue to be valid only for a period up to the 31st day of March, 2021.
    (4) An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.
    Source
    https://jan-sampark.nic.in/campaigns/2020/30-Jun/MSME/index.html

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