Depending on how much money a company makes each year, it is categorized as a Micro, Small, and Medium Enterprise. It was formerly referred to as SSI registered entities. The MSME Development Act, 2006 of the Central Government permits the issuance of MSME registration certificates to organizations that are registered under said Act. The Act was designed to foster the growth and promotion of small and medium-sized businesses.

Almost all company operations could be registered under Scheme in the past, however commerce and a few other business activities are now expressly banned from this category.businesses choose to do registration so online due to the many advantages that the government has listed.

Advantages of registering as an MSME

➨Tax incentives: By registering your company as an MSME, you may be eligible for tax incentives based on the nature of your industry, such as early exemption from some direct taxes.

➨Easy Payment Clearance: MSME registration enables your company to quickly clear any outstanding payments.

➨50% off trademark and patent application fees: MSME registration gives you a discount on the cost of trademark and patent application fees. Those organizations who have an MSME registration certificate can submit it to receive a 50% reduction on government expenses.

➨Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE) is a more helpful credit guarantee programme for small-scale industries. It supports small-scale industries that are struggling financially by providing credit and income input from a variety of sources.

➨Lesser Interest Rates For Bank OverDraft(OD): Banks and other financial institutions are aware of MSMEs and offer a variety of special programmes for them.

➨Businesses that have received MSME registration are eligible for the Mudra Loan Scheme.

There are essentially 3 different types of MSMEs or SSIs, which are categorized as follows:

Small-scale businesses are known as micro-enterprises. Businesses classified as microservice companies should have an investment of less than Rs. 10 lakhs and micromanufacturing businesses should have an investment of less than Rs. 25 lakhs in equipment.

Small Businesses: The investment limit for small service businesses is between Rs. 10 lakh and Rs. 2 crore, and the investment limit for small manufacturing businesses is between Rs. 25 lakh and Rs. 5 crore for plant and machinery.

Medium Businesses: Finally, for medium manufacturing businesses, the investment should range between Rs. 5 crore and Rs. 10 crore for equipment, and between Rs. 2 crore and Rs. 5 crore for medium service businesses.

Procedure for Msme / Ssi Registration

It is not necessary to register as an MSME in order to start or operate a business, but it is always a good idea to do so in order to benefit from the government's MSME perks.

The MSME registration procedure is straightforward and quick for small- and medium-sized businesses. Both offline and online methods can be used, although online is preferable because it only requires a single form to be filled out and allows for registration from any location.

You must add your company's information and other details here, including

➨Number from applicant's Aadhar

➨The applicant's name, gender, PAN number, email address, and mobile number.

➨PAN number, place of business, and address.

➨The number of employees you aim to have when you launch your business.

➨Account number and IFSC code for the bank.

➨the enterprise's primary commercial activity.

➨Investment information

Required Documents for MSME Registration

 The following documents must be submitted in order to register your firm under MSME.

Business Address Verification of the company:

You must produce an allotment letter, a lease deed, a property tax receipt, or a possession letter if the business location is privately owned. There is no need to submit another possession document if you already have a municipal license in your business name, the name of a partner, director or the name of the business owner.

You must provide a no-objection certificate from the property owner and the rent receipt if the business location is rented. Additionally, any utility bill proving the landlord's ownership must be provided.

Copies of the purchase and sale bills:

Each end product of the business that the entity will supply must have a copy of the sale bill submitted with it. A purchase bill must be provided for each and every raw item that is acquired as well.

MoA, AoA, and Partnership Deed:

If the business is a partnership, the partnership deed must be shown. The registration certificate of the partnership firm must be submitted if it has already been registered.

If it is a company, the MSME registration process requires a copy of the firm's articles of incorporation, memorandum of association, and certificate of incorporation. A copy of the board decision authorizing a director to sign the MSME application as well as a copy of the resolution approved at the general meeting must also be included.

Copy of Purchased Machinery Bills and Licenses

In a few circumstances, the applicant must present a copy of the industrial license issued by the Indian government. Additionally, you must file all receipts and bills relating to the purchase and installation of equipment for your business in the correct format, as this may be necessary during the registration process.