What is the meaning of MSME:
MSME Stands for Micro Small and Medium Enterprise, MSME enterprises are governed by MSME Act, 2006 (amended time to time). Application for online MSME Registration can be filed easily with the help of below mentioned steps. The MSME Act, bifurcate business enterprises into 3 broad categories which are Micro, Small and Medium. The MSME Act also prescribed criteria on which basis an enterprises can be classify either as Micro, Small or Medium. To avail the benefit of MSME, an Online MSME Registration application has to be filed with government portal.
As there are several benefits of MSME registration, everyone wants to apply for Online MSME Registration. In coming paragraph, we will explain in detailed about Key benefits of MSME Registration. Further we will also discuss, How to apply for MSME Registration and Who can apply for MSME Registration.
Revised definition of MSME or Revised MSME Eligibility Criteria or who can be MSME:
Through announcement of “Atmanirbhar Bharat Package”, Finance ministry has changed definition of MSME and revised Eligibility criteria of MSME has been prescribed. As per revised definition of MSME, two conditions are needs to be satisfied to apply for online MSME Registration. Previously, only one condition of Investment was there now turnover criteria also included in MSME online Registration.
Any businessman running manufacturing unit or providing services can apply for MSME. The only condition which he or she have is to be satisfied is that Investment and Turnover Limit. Whatever business category it is like Proprietorship, partnership, LLP or Company etc can apply for MMSE registration.
In New Definition of MSME, Certain turnover limit has been imposed hence if turnover is less than prescribed limit then only you can apply for Online MSME registration. Hence Turnover as well as Investment must be within limit to apply for MSME registration. The revised definition of MSME is as below:
|Micro||Up to 1 Crore||Up to 5 Crore|
|Small||Up to 10 Crore||Up to 50 Crore|
|Medium||Up to 50 Crore||Up to 250 Crore|
Existing Definition of MSME is as below or Eligibility criteria of MSME:
|Micro||Up to 25 Lakh|
|Small||Up to 5 Crore|
|Medium||Up to 10 Crore|
How to apply online for MSME Registration or Process for MSME Registration:
Indian government has their own dedicated portal where anyone can apply for Online MSME Registration. On this portal, applicant has to provide certain information to apply for MSME online registration. We have explained entire MSME registration process in below paragraph.
Step by Step process for MSME Registration:
Step 1: To apply for MSME, applicants have to provide aadhaar based OTP. Such aadhaar OTP will be delivered on registered mobile no of applicant. In case of Company aadhaar of any director can be use to obtain OTP. In case of partnership firm, aadhaar of any partner can be use.
Step 2: To obtain OTP, aadhaar no of applicant has to be entered on government portal then portal will generate OTP on mobile which is link with aadhaar.
Step 3: After submitting OTP, Applicant has to provide following details:
- Name of Organisation and type of organisation like Company or partnership
- PAN of organisation (Kindly do not enter PAN of Individual whose aadhaar is entered)
- Registered office address of organisation
- Additional address details of Factory, Plant and Branches
- Mobile no and Email ID
- Date of commencement of business
- Bank Account no and Corresponding IFSC code
- Select either manufacturing or Service Industry
- Provide National Industry Classification code(NIC code), Refer link to know NIC code https://udyogaadhaar.gov.in/UA/Document/nic_2008_17apr09.pdf
- No of Employees in business
- Total Investment made
- District Industry Centre
Step 4: After providing required information click on Submit, once you will submit then another OTP will be delivered to applicant’s registered mobile no. Once OTP entered then an Email will be delivered on provided Email ID with a copy of MSME Certificate.
What’s relief package granted for MSME
As a part of “Atmanirbhar Bharat”, Finance Ministry on 13th May 2020 has announced several incentive schemes for MSMEs. Through this Economy Package, Certain facilities are being launched to help MSME segment of India. If an organisation is classify as MSME then such organisation can avail following facilities or can apply for following schemes:
- An MSME will be provided with collateral free loan for 4 years. Further 1 year moratorium period will also be given for principal repayment. Under this scheme loan of upto 25 crore can be granted.
- If an MSME is NPA or Stressed then he may apply for subordinated debt facility. However there is limit of 15% to existing exposure of bank or 75 Lakh whichever is less.
- MSME can issue equity shares to government to raise funds. A corpus fund will be created by government for equity infusion in MSME.
- Now a businessman having turnover up to 100 crore can also be apply for online MSME Registration. Earlier only Investment limit was there. Through this new definition of MSME, now large businessman can also apply for MSME who have turnover up to 100 crore.
- An e-market platform will be launched as replacement of Exhibition and Trade fairs. It will help MSME to reduce their cost for participation in exhibitions.
- Government will release all pending amount of MSME within 45 days which will help MSME to overcome liquidity problem.
- To promote MSME, Global Tendering will not be allowed in government procurements where contract value is upto 200 crore.
Above illustrated six measure are being taken to give New Energy to MSME segment of company as MSME plays vital role between big corporate and consumers. Without the survival of MSME it would be really difficult to achieve GDP growth.
What’s benefits of MSME online Registration:
Well, MSME segment is backbone of Indian Economy and for the survival of Indian Economy; Indian Government has prescribed several benefits. From such benefits or incentive, Cost of Production or Services comes down which helps MSME to increase their sales by keeping their price competitive. Here we prepared a list of key benefits available for MSME which are as follows:
- Subsidy on Patent, Trademark and other Registrations
- Collateral free loans from various Banks and Financial Institutions
- Priority over other vendors in government procurement through GEM portal
- Reduced rate of Interest under various schemes
- Equity Infusion form government
- Collection of receivable within 45 days, post that interest has to be paid to MSME
On the basis of above interpretations, we can understand that there are several benefits of MSME registration are available for a businessman. If anyone wants to apply for online MSME Registrations then he or she may apply with above mentioned information and get the MSME Certificate immediately. As there are various benefits can be obtained from MSME registration businessman are advised to apply for Online MSME Registration
FAQ on MSME Registration:
Question: Can Trader apply for MSME Registration
Answer: No, Traders are not allowed to apply for MSME. Hence only Manufacturer and Service Provider can apply
Question: What is fee of MSME Registration
Answer: There is no government fee for MSME registration; however professional who is filing application can charge his fee.
Question: Whether digital signature is required for Online MSME registration
Answer: No, MSME registration is aadhaar based hence no DSC required
Question: How to get MSME Certificate
Answer: Certificate will come to the email which you provided at the time of application.