MSME is basically known as Ministry of Micro, Small & Medium Enterprises. MSME falls under micro, small & medium sized enterprises. MSME enterprises are the strength of any economy and are an engine of economic growth. Therefore, with the help of various schemes and subsidies, the Government of India promotes MSME through MSMED Act. And MSME registration is necessary to avail the benefits under the MSMED Act from the banking sector, central or state Government. MSME registration is simply an optional registration that provides Micro, Small and Medium sized enterprises with various benefits like subsidies and schemes. MSME is classified in two categories that is manufacturing enterprises where the enterprises engaged in the production or manufacture of goods and service enterprises in which the enterprises engaged in the business of providing or rendering of services or in simple words, it is defined in terms of investment in equipment. Now you can get MSME registration very easily.

MSME enterprises of manufacturing sector can be categorized on the basis of amount invested in plant and machinery –

  • Micro enterprises– Entities investing less than ₹ 25 lakhs in plant and machinery
  • Small enterprises– Entities investing between ₹ 25 lakhs and ₹ 5 crores in plant and machinery
  • Medium enterprises– Entities investing between ₹ 5 crores and ₹ 10 crores in plant and machinery

MSME enterprises in the service sector can be categorized on the basis of amount invested in equipment-

  • Micro enterprises– Entities investing less than ₹ 10 lakhs
  • Small enterprises– Entities investing more than ₹ 10 lakhs but less than ₹ 2 crores
  • Medium enterprises– Entities investing ₹ 2 crores but less than ₹ 5 crores.    

Documents Required

 

The entity has to submit business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.

1. Business Address Proof

If the premise is self-owned– Allotment letter, possession letter, lease deed or property tax receipt. If there is a municipal license 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.

If the premise is rented– Rent receipt and a no objection certificate from the landlord is required. Also, any utility bill or document evidencing the landlord’s ownership is to be submitted.

2. Copies of Sale Bill and Purchase Bill

Business is required to submit copy of sale bill related to each end product that it will supply. Also, for each raw material that it will purchase, a purchase bill has to be submitted.

3. Partnership Deed/ MoA and AoA

If the business is a partnership firm, it has to submit its partnership deed. If the partnership firm is registered, it has to submit registration certificate also.

In case of a company, copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted. With it, copy of the resolution passed in general meeting, and a copy of board resolution authorizing a director to sign the MSME application is also to be submitted.    

4. Copy of Licenses and Bills of Machinery Purchased

In few cases, the applicant has to submit a copy of industrial license which is to be obtained by giving an application to Govt. of India. Further, all bills and receipts related to purchase and installation of plant and machinery have to be kept safe and required to be submitted on demand.