What is MSME Registration In India?

MSME is a short form for micro small or medium enterprises. In India, the government has made an act for the micro, small and medium enterprises development, i.e MSMED Act 2006. This was done to boost the small businesses. Any micro small medium enterprise that is into manufacturing and service providing sector can easily obtain MSME Registration under the MSME Act.

What Is the Eligibility for getting an MSME Registration?

Now, who is eligible for obtaining an MSME registration or SSI registration online? Basically, anybody that owns a type of business or business entity that includes proprietorship, HUF partnerships, One Person Company, limited liability partnership or private limited company etc. These are the types of businesses that can be classified as the small micro or medium enterprises as per the MSMED Act, 2006 are all eligible for applying for MSME online registration. These enterprises are classified into the categories of small, micro, medium enterprises by the virtue of their investments in plant and machinery. Now just in case, the individual is engaged in manufacturing, the following is a small table to understand further:-

1. Micro enterprises – The investment and overall business is not more than Rs 25 lakhs.

2. Small enterprise – The investment and overall business is between the starting from Rs 25 lakhs to Rs 5 crores and not exceeding the higher.

3. Medium enterprise – The investment and overall business is between starting from Rs 5 crore to Rs 10 crore.

In case, where the entities are engaged in rendering their services, following is the classification:-

1. Micro enterprise – The investment in equipment will not be more Rs 10 lakhs

2. Small enterprise – The investment in the equipment would be between starting from Rs 10 lakhs to Rs 2 crores.

3. Medium enterprise – Rs 2 crores to Rs 5 crores.

How does MSME Registration help an individual in getting a loan from the bank?

The enterprises that have MSME online registration certificate will get a loan sanctioned easily, credits and overdrafts from the bank at subsidized rates in comparison with other enterprises. Which basically means that for a bank, the possibility of granting a loan to an MSME registered business is way higher than any other businesses. Individuals with SSI Registration Delhi also benefits from special schemes that are exclusive for MSME registered entities.

Let’s look at some of the benefits:-

• Bank loans are sanctioned easily and with the subsidy.

• They get tax rebates.

• They get an easy access to credits

• Excise exemption scheme.

• Getting power tariff subsidies.

• Subsidies for capital investment.

• Preference to them for tenders.

• Access to mudra loan schemes.

What is validity time period of MSME Registration certificate?

There exist two kinds of MSME Registration certificates. One is the initial where the provisional registration certificate will be issued which remains valid for 5 years after which you can proceed with the commencement of operations and obtain a permanent MSME Registration certificate.

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