MSME denotes micro, small and medium enterprises and a business that comes under any of these three types. MSME enterprises are known as the backbone of an economy and they accelerate economic growth. This promotes equal growth for all enterprises. According to the MSMED Act, micro, small and medium sized businesses in both service and manufacturing sector can acquire MSME registration.
The MSME registration is required to get the benefits and subsidies offered by government to service providers and small scale industries regularly. As registration process is completely voluntary and easy to be done quickly, a lot of businesses choose this compared to other registrations. It is compulsory to have a commercial or manufacturing space to offer services.
Once completed MSME registration, an organization can enjoy a lot of advantages. Some of them are as follows :
Cheaper rate of interest on bank loans
Exemption of excise duty
Collateral free loans from the banks
Capital investments subsidy and other related supports
Considering for the global trade fairs
Reservation strategies for the production and manufacturing sector
Settlement of ISO certification
Eligibility to entitle for subsidy
Certain loan schemes can be accessed
The next step is to obtain documents in order to perform registration.
Let us know the essential documents to perform registration :
Aadhaar card of all the directors or all the partners or the proprietor
PAN card of all the directors or the entire partner or the proprietor
If the premises are rented then NOC and rent agreement from the landlord and utility bill
Proof of ownership of premises like possession letter or allotment letter or property tax receipt or lease agreement
Copy of purchase bill whenever raw materials are purchased
Copy of sale bill whenever a product is sold
In case of private limited company registration, copy of articles of association and memorandum and certificate of incorporation. In addition, Board's Resolution should be submitted along with director's sign on the application.
If the business is a partnership firm, copy of partnership deed is required.
An affidavit on non-judicial stamp paper worth Rs 10 duly attested by Notary Public that offers power requisite, status of machinery installed and others.
Photocopy of industrial license offered by Industrial Development and Regulation Act, 1951.
Bills related to purchases and installation of plant and machinery
Copy of bills that supports installation of purchased machinery
Bank Account Statement
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Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is enacted by the Government of India. MSME Act deals with the enterprises involved in the manufacture or production, processing or preservation of goods.
The Ministry of MSME, Government of India and SIDBI launched the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Flow of credit to the MSE sector is facilitated by the Ministry of MSME without any necessity for collaterals/ third party guarantees.
Ministry executes a scheme known as Credit Linked Capital Subsidy Scheme (CLCSS) for technology up gradation of Micro and Small enterprises in the country. Under the scheme, 15% capital subsidy, limited to maximum of Rs 15 lakh (12% prior to 29.09.2005 limited to maximum of Rs 4.8 lakh) is offered to the suitable MSEs for upgrading their technology with the well-established and better technology as accepted under the scheme. 48 products / sub-sectors have been accepted under the CLCSS till date.
The Ministry is performing the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) in which support is offered for diagnostic study, soft interventions like counselling, general awareness, trust making and motivation, exposure visits, market development with exports, attending seminars, workshops and training programmes on technology upgrading and others.
The Ministry performs different kinds of training programme through a variety of organisations for self employment and wage employment. The training programmes are primarily focused to encourage self employment in the country. Therefore all kind of programmes have input which offer essential information and skills to a trainee to enable him for establishing his own micro or a small enterprises.
Tool Rooms are equipped with up to date machinery and equipment. They are involved in designing and manufacturing of quality tools that are essential to make quality products and develop the competitiveness of MSMEs in national and international markets. They also accomplish training programmes to offer skilled manpower to industries particularly MSMEs.
The National Manufacturing Competitiveness Programme (NMCP) is the nodal programme of the Government to grow global competitiveness among Indian MSMEs. The Programme was started in 2007-08. This programme is meant to enhance the complete value chain of the MSME sector through a number of schemes.
The Ministry executes the "Technology and Quality Up gradation Support to Micro, Small and Medium Enterprises (TEQUP)" which focuses on 2 significant aspects like :
Growing competitiveness of MSME sector through energy efficiency
Product Quality Certification
The basic purpose of this scheme is to facilitate MSMEs in implementing energy efficient technologies and to develop product quality of manufacturing in MSMEs. It is a true fact that energy consumption is an important part in the cost structure of almost any manufacturing/ production activity. Implementing energy efficient technologies reduces the cost of energy there by cutting production cost and growing competitiveness.
The TEQUP scheme includes another activity which is Product Quality Certification. The main aim of this scheme is to facilitate MSMEs to get Product Certification Licenses from National / International Units, thereby growing their competitiveness.
The Ministry executes the design clinic method for design capability to Micro, Small and Medium Enterprises (MSME) Sector in order to grow the design of the product and meet global challenges and contend with similar products domestically and internationally. It is started to promote MSMEs by making a dynamic platform to offer expert solutions to real time design problems and add value to existing products.