| Expenses | Rs 2,999 |
| Professional Fees | Rs 2,543 |
| Goods & Service Tax | Rs 457 |
| Total Cost | Rs 5,999* |
* This is the price breakdown of basic ISO `.
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Satisfactory Quality of Goods and Services
Effective environmental management
Health and safety management system at the workplace
Food safety management
Excellence in IT Management
Information security management system (ISMS)
European health, safety, and environmental protection for products sold in the European Economic Areas
Energy management practices
PAN Card, GST Certification, Certification of Incorporation/MSME Certificate Visiting Card or Letter Head
Sales or Purchase Invoice Description of the Business Activity
With Acknowledgement
MSME stands for Micro Small and Medium Enterprises. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, to boost the small businesses. MSMEs in the manufacturing and service enterprises can obtain the registration under the Act.
Any type of business entity such as proprietorships, HUFs, partnerships, OPCs, LLPs or private limited companies can be classified as an MSME as per the MSMED Act, 2006, and are eligible to apply for the MSME online certification. The classifications of the MSMEs are based on the investment in plant and machinery.
For manufacturing entities:
Type of Unit | Investment in Plant and Machinery |
|---|---|
| Micro Enterprises | Not more than Rs.25 Lakhs |
| Small Enterprises | INR 25 Lakhs to INR 5 Crores |
| Medium Enterprises | INR 5 Crores to INR 10 Crores |
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For service provider entities
Type of Unit | Investment in Plan and Machinery |
|---|---|
| Micro Enterprises | Not more than Rs.10 Lakhs |
| Small Enterprises | INR 10 Lakhs to INR 2 Crores |
| Medium Enterprises | INR 2 Crores to INR 5 Crores |
MSMEs get loans, credit, and overdraft facilities from the bank at subsidised rates as compared to other regular companies. MSME also have comparatively higher possibilities of securing loans and enjoy exclusive schemes.
The enterprises register MSME to avail the benefits of:
As per the MSMED Act, the MSME registration is voluntary. However, it is advisable to register under MSME Act, as it opens up a host of benefits. The purpose of the MSME / UDYOG AADHAR registration is to avail the benefits and subsidies provided by the government.
The provisional MSME registration certificate is valid for five years. As soon as you set up the business unit, you can apply for the permanent license. The permanent registration certificate is valid for a lifetime period. But, if you are unable to set up the unit within five years or the unit exceed the investment limit then you may re-apply for the MSME certificate.
The act divided the MSMEs into two categories:
These enterprises are further sub-divided into Micro, Small and Medium enterprises based on their investment in plant and machinery.
Online MSME registration is at the discretion of the business owner. However, it is advisable to obtain MSME registration right after the incorporation in order to avail the benefits of the subsidies and schemes.
Commercial banks can grant composite loans within a limit of INR 1 Crore. MSMEs can use this loan to avail working capital requirements and avoid delay in commencement of commercial production.
While calculating the investment value, land and building will not be counted as investment. For a manufacturing unit, the cost of plant and machinery above Rs.25 crore and for a service unit cost of plant and machinery above Rs. 10 crores are not counted as an investment. Also, depreciation will not be deducted from the cost of plant and machinery. The original value will be taken into consideration.
There are certain facilities and subsidies including tax subsidies, power tariffs subsidies and capital investment subsidies, which are available to only registered MSMEs.
CGTMSE is a scheme available for registered MSMEs. Under this scheme, banks offer the finance with the limit of INR 100 lakhs without any collateral security. Every bank recognised under MSME Act has separate ceiling limits for financing MSMEs under the CGTMSE Scheme.
The Government adopted the cluster development approach to enhance the production and competition, as well as capacity building of MSMEs. Clustering of units enables the service providers to provide services more economically.
No, the whole MSME enterprise registration process is done online. You can send the scanned copies of all the required incorporation documents. All the forms and documents are filed electronically and are digitally signed.
Obtaining the MSME/ SSI registration is not mandatory but it’s a preferable alternative to reap the advantages available to micro, small and medium scale enterprises.
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