MSME Stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. No matter whether the Company is in manufacturing or service sector, registrations under MSME can be obtained for both the sectors. However, MSME registration is not yet mandatory but there are a lot of merits of MSME registration. In this article, we shall discuss upon the eligibility criteria, benefits and documents required for MSME registration to obtain MSME Registration certificate.

1. Eligibility Criteria for registration to obtain MSME certificate

Eligibility Criteria is defined in terms of investment in plant and machinery/equipment for manufacturing/service sector as mentioned below:

Micro Small Medium
Manufacturing Enterprises Up to Rs. 25 lacs More than Rs. 25 lacs but up to Rs. 5 crores More than Rs. 5 crores but upto Rs. 10 crores
Service Enterprises Up to Rs. 10 lacs More than Rs. 10 lacs but up to Rs. 2 crores More than Rs. 2 crores but up to Rs. 5 crores

2. Benefits of MSME certificate or Registration as MSME

Herebelow we have explained some of the Benefits of MSME registration

  • MSME entities can avail 50% concession in trademark and patent registration.
  • Easy sanction of loan and lower rate of interest.
  • Avail benefit of 1% exemption on interest rate on OD as mentioned in the scheme
  • Avail concession on electricity bill by making application to electricity department.
  • Avail certain Benefits under Direct tax and Indirect tax.
  • It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years.
  • There are many government tenders which are only open to the MSME Industries.

3. Documents Required for MSME Registration 

  • Self attested copy of Aadhaar that is linked with mobile number to generate OTP.
  • Self attested copy of identity proofs.
  • Copy of utility bill evidencing address of enterprise. In case the property is a rented one, then an NOC from the owner.
  • Copies of Sale/Purchase Bill.
  • Partnership Deed/AOA and MOA
  • Copy of licenses and Bills of Machinery purchased.
  • Details of bank account.
  • PAN of the enterprise.

Please note that the MSME registration can be done online on www.udyogaadhaar.gov.in and there is no statutory fee for registration under the same.

{The author is a Company Secretary in Practice and can be reached at (M) 9999952595 and (E) [email protected]}

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Qualification: CS
Company: Kajal Goyal and Associates
Location: Delhi, Delhi, India
Member Since: 11 Jun 2018 | Total Posts: 80
KAJAL GOYAL AND ASSOCIATES, is a Company Secretary proprietorship firm, offering its expertise and one stop solutions for all Corporate compliance requirements to the clients with a strong emphasis on ethics and ‘being on toes’. Capable delivering services related to Companies Act, FEMA, Re View Full Profile

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