MSME An added advantage to your Enterprise

Posted by Enterslice India on September 26th, 2018

Introduction:

Once a company gets itself registered as MSME (Micro small medium enterprises), it becomes eligible for various benefits available under various schemes of the government. Although the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME. The MSME is regulated by the MSMED Act, 2006. The various schemes, exemptions, grants issued time to time is provided to encourage and enhance more participation of such enterprises, in return, even the enterprises are contributing in the growth of the economy by way of exports to foreign territories, exchange of technologies at international level and also has resulted in enhanced employment opportunities.

BRIEF:

Industries sectors eligible to be registered: Enterprises engaged in manufacturing of Products and Services.

 Types of MSME:

  1. Micro Enterprises
  2. Small Enterprises
  3. Medium Enterprises

The basis of division into MSME: It is categorized on the basis of investment in Asset. However, it is proposed to be categories on the basis of turnover.

Categories of MSME:

Product based:

All such manufacturers who are engaged in the process of manufacturing, production, processing or preservation of goods are required to register themselves according to the given below categories:

  1. MICROENTERPRISE:

Industries having an Investment in plant and machinery of up to 25 lakh

  1. SMALL ENTERPRISE:

Industries having an Investment in plant and machinery of more than 25 lakh but up to 5 crores

  1. MEDIUM ENTERPRISE:

Industries having an Investment in plant and machinery of more than 5 crores but up to 10 crores

Service-based:

All such organization which is engaged in rendering services and are related to the service sector are required to register themselves according to the given below categories:

  1. MICROENTERPRISE- Organizations having an investment in equipment up to 10 lakh
  2. SMALL ENTERPRISE- Organizations having an investment in equipment more than 10 lakh but up to 2 crores
  3. MEDIUM ENTERPRISE- Organizations having an investment in equipment more than 2 crores but up to 5 crores

Documents required for registration:

  1. Established Business address proof:

In the case of the self-owned premises following can be submitted:

a)      Allotment letter,

b)      Possession letter,

c)      Lease deed or property tax receipt.

d)     In the case when the municipal license is available in the business name or in the name of the proprietor, partner or director of the business, no other possession document is required to be submitted.

  1. In case the premise is rented following is required:

a)      A no objection certificate from the landlord is required.

b)      Rent receipt

c)      Any utility bill or document evidencing the landlord’s ownership is to be submitted

  1. Copies of sale bill in which it is going to deal in and sell or supply.
  2. Copies of Purchase bill of such raw materials purchased.
  3. Licenses from regulatory bodies as obtained.
  4. All bills and receipts related to purchase and installation of plant and machinery if stipulated. 

Registration Steps:

Step 1: Application on MSME registration is required to be done online.

Step 2: The verification of same is to be done using the e-Aadhar OTP.

Step 3: Provisional registration is granted for the initial years of 5 years, in cases where the entity has not yet started its business.

Step 4: On commencement of operations, the company can apply for the permanent license, until and unless the previous one has been canceled.

Benefit:

The benefit of such provisional registration is that the basis these companies can approach the bank and apply for loans and certain NOCS can be obtained basis this provisional registration number obtained.

Just to know:

To facilitate the ease of business it is PROPOSED to divide the industries on the basis of annual sales turnover rather than on an investment basis and hence there will be no distinction between manufacturing and service unit.

Proposed limits are:

Sr. No.

Types

Turnover

  1.  

Micro Enterprise

Turnover upto 5 crores

  1.  

Small Enterprise

Turnover upto 75 crores

  1.  

Medium Enterprise

Turnover upto 250 crores

In the recent era, the MSME sector took a boom and kept growing consistently and in response to that to promote it government regularly announces various schemes. Hence it is highly recommended to get your enterprise registered under MSME.

Source url http://entersliceindia.blogginger.com/msme-an-added-advantage-to-your-enterprise

 

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Enterslice India

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Enterslice India
Joined: February 10th, 2018
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