MSME Registration
MSME- Micro, Small and Medium Enterprises Registration
What does MSME stand for and the criteria for registration?
MSME Stands for Micro, Small & Medium Enterprises. In the rise of Covid-19, the Central Government has revised the definition of MSMEs to give them the confidence to grow. Under the new definition, the distinction between manufacturing and services enterprises has been eliminated. Under the new definition of MSMEs, the investment criteria for such enterprises have been revised upwards, while an additional criterion of turnover has been introduced. The old and new criteria with limits are as follows:
What are the documents required for MSME Registration?
Aadhar Number - Aadhar card Number of the proprietor in case of proprietorship and Director in case of Company
PAN Card Number-PAN card Number of the proprietor in case of proprietorship and of Company in case of Company
Business address proof- If the premise is rented– Rent receipt and a no objection certificate from the landlord is required. If the premise is self-owned– Allotment letter, possession letter, lease deed or property tax receipt.
Bank A/c Details- Bank A/c detail of which is used in business.
Major Activities of Organisation-Includes all the major activities through with organisation earn its revenue.
Person employed-Total number of persons employed in the organisation along with name & PAN details
Investment in Plant & machinery-Amount invested in plant and machinery in previous financial year along with proof of investments like Purchase Invoice in case of Machinary.
Turnover in previous FY-Turnover of the organisation in the previous financial year
Partnership Deed/ MOA and AOA-Memorandum and Articles in case of company and partnership deed in case of Partnership.
What is the procedure for MSME Registration?
Aadhar number is now compulsory for registering under MSME act. An application is to be filed online using Udyog Aadhar Registration, and this can be verified using e-Aadhar OTP.
Provisional registration is given in the initial five years if an entity hasn’t started its business yet. During this period, it can obtain loans from banks, and apply for various NOCs from regulatory bodies. Once the entity commences its operations, it can apply for a permanent license which has a lifetime validity, unless cancelled.
The registration process for MSME is very easy and the owner needs to file only 1 form with the help of its Aadhar Card. The process of Registration is as follow:
To apply for registration the person need to fill a single form which is available at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx
The person needs to provide details and he will receive an OTP on his registered mobile number.
After validating Aadhar number through OTP, a page will open asking for details.
PAN card number, Industry name, Address, bank account details and some common information is required to be filled after that.
In this, the person can provide self-certified certificates.
There are no registration fees required for this process.
Once the detail-filled and upload you would be getting the registration number.
If a person wants to do registration for more than one industry then also he/she can do individual registration.
What are the activities excluded from MSME?
Forest and Logging
Fishing and aquaculture
Wholesale, retail trade and repair of motor vehicle and motorcycles
Wholesale trade except for motor vehicles and motorcycles.
Retail Trade Except of Motor Vehicles and motor cycles
Activities of households as employees for domestic personnel
Undifferentiated goods and services producing activities of private households for own
Activities of extraterritorial organisations and bodies
How much time would it take to execute the assignment?
A 2 days documentary procedure to complete MSME Registration Formalities in India.