Introduction

Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.

What are Micro, Small & Medium Enterprises?

In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two Classes:

i.Manufacturing Enterprises-The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation) Act, 1951) or employing plant and machinery in the process of value addition to the final product having a distinct name or character or use. The Manufacturing Enterprise are defined in terms of investment in Plant & Machinery.

ii.Service Enterprises: -The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment.

2. Eligibility Criteria for registration under MSME Act vide S.O. 1642(E) dtd.29-09-2006

For manufacturing Business

 For service providers

3. Documents required for registration as MSME:-

1. Adhar card of the applicant (Proprietor/partner/director)

2.Name of applicant

3.Caste

4.Business name

5.Type of business entity

6.Address where plant is located

7.Office address

8.Date of commencement of business

9.Bank details (Bank Account and IFSC Code)

10.Business activity

11.Number of employees

12.Investment in Plant and Machinery or equipment

13.Photo Id proof of Applicant

14.Mobile number (linked with adhar card)

15.Email Id for OTP Verification

4. Benefits of Udyog Aadhar/MSME Registration: –

5.Some points to be noted for MSME Registration: –

1.MSME registration is also known as Udyog Adhar Registration and it is voluntary registration, not mandatory.

2.If someone wishes to register for more than one industry then they should opt for individual registration

3.In this form, the MSME has to self-certify its existence, details of the business activity, bank account, ownership and employment details and other information

4.No registration fees are required to be paid for this process.

5.After filling the details and uploading the same, the registration number would be generated and the same would be mailed to the email address given in the UAM which should contain unique UAN (Udyog Aadhaar Number)

6.Some of the MSME schemes launched government are Udyog adhar memorandum, zero effect, zero defect

6. Government of India launches support and outreach initiative for greater synergy to MSME Sector:

1.Loan upto 1 crore within 59 minutes through online portal

2.Interest Subvention of 2% for all GST registered MSMEs on fresh incremental loans

3.All companies with a turnover of more than 500 crores to be mandatorily on TReDS platforms to enable entrepreneurs to access credit form Banks, based on their upcoming receivables, thus, solving the problems of cash cycle

4.All PSUs to compulsorily procure 25 % from MSMEs instead of 20% of their total purchases

5.Out of 25% procurement mandated from MSME, 3% reserved for women entrepreneurs

6.All CPUs to compulsorily procure through GeM portal.

7.100 Technology centres to be established to the cost of Rs. 6000 crore

8.Govt. of India to bear 70 percent of the cost for establishing Pharma dusters

9.Returns under 8 Labour laws and 10 Union regulations to be filed once in a year

10.Establishment to be visited by an Inspector will be decided through computerised random allotment.

Sources- https://taxguru.in/corporate-law/registration-msme-benefits.html