MSME basically is known as Micro, Small, and Medium Enterprises. In India, the number of enterprises such as micro, small, and medium has a large area to be covered with. More than half of the population is engaged in such a portion of the enterprise. Thus when these enterprises grow, it also affects the economy of India to flourish. There was no particular law to safeguard such enterprises and help them attain benefits. Thus the Government of India has enacted a law for MSMEs in order to provide them with guidance and can avail benefits guaranteed to them. This blog is about the documents required for MSME Registration in India.
What is MSME Registration?
MSME Ministry is the government body that mainly deals with the rules, regulations, guidelines, laws, etc in relation to small-scale enterprises. All the MSMEs need to get themself registered under the Act. As this will help the enterprises to obtain the benefits under the government schemes. And by being covered in an act, the enterprises will also be treated equally, under the umbrella provision. Also, when a company registers under the MSMEs Act, it receives a number of advantages, including lower interest rates on bank loans, tax advantages, preference in the tendering process, and access to a number of government programs and incentives.
The MSMEs are divided into two sectors in accordance with the regulations of the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006:
(i) Manufacturing Businesses
Investment in plant and machinery is included in the manufacturing enterprise.
- Micro Businesses: Maximum investment is Rs. 25 Lakhs
- Small Businesses: Investment in small businesses must be at least Rs. 25 Lakhs but not more than Rs. 5 Crores.
- Medium Businesses: Investment in medium-sized businesses must be at least Rs. 5 Crores but not more than Rs. 10 Crores.
(ii) Service Businesses:
- Micro Businesses: Investment in Micro Enterprises is limited to Rs. 10,000.
- Small Businesses: Investment in small businesses is greater than Rs. 10 Lakhs but not greater than Rs. 2 Crores.
- Medium Businesses: Investment in medium-sized businesses is greater than Rs. 2 Crores but not more than Rs. 5 Crores.
Information required for MSME Application Form
The following information must be entered by the business owners on the MSME application form:
- Aadhar Number of the entrepreneur.
- Name of the entrepreneur according to their Aadhar card and mention the type of business in it (such as Proprietorship, partnership firm, private or public limited company, limited liability partnership, co-operative society, Hindu undivided family, self-help group, society or trust).
- PAN Card of business enterprise.
- Socioeconomic status (general, OBC, SC/ST)
- Gender Company Name Plant or Unit Location Company Office Address
- Date of business launch, company establishment, or registration Bank account number and IFSC code
- Business activity of an enterprise’s principal activity NIC code
- Number of personnel
- details of the amount invested in equipment and plants (if there is no investment in plant and machinery, entrepreneurs can write it as nil).
Documents Required for MSME Registration
The following are the documents required for MSME Registration:
- Address verification for the company
- A replica of the buy and sales invoice book
- Receipts and invoices for the acquisition of machinery or equipment
- A copy of the Business License
- Aadhar ID
- PAN Card
- Number of a bank account
- IFSC Number
- NIC Number
- Employee information, if any
- Number of personnel
- In the case of a partnership firm, partnership details
- GSTIN document
- Partnership deed for an unregistered partnership
- Registered Partnership Company: Certificate of Registration
- Articles of Association (AOA)
- Association Bylaws
- Declaration of Incorporation
- A replica of the company’s general meeting resolution
- A copy of a board resolution with a director’s signature, authenticating the submission of the MSME application.
Essential Prerequisites for Documents Required for MSME Registration in India
Following are some of the prerequisites for MSME Registration:
- An Aadhar card and a PAN card are the only two documents required for MSME registration. There is no requirement for supporting papers to register an MSME because the process can be done totally online.
- Data on investments and firm turnover would be automatically retrieved via the Udyam Registration Portal from government databases relating to PAN and GST.
- GST is not due to companies that are exempt from the law of GST registration requirements.
- If you currently have a UAM registration or any other registration issued by a body within the Ministry of MSME, you must re-register in the Udyam Registration Portal by choosing “For New Entrepreneurs who are not Registered as MSME or those with EM-II.”
What Is an MSME Certificate?
After successfully Registration for MSME, applicants are provided with MSME Certificate. This serves as proof that one is registered under the Act and can avail of the benefits under the government schemes.
Conclusion – Documents Required for MSME Registration in India
Documents Required for MSME Registration are the core basis for socially empowering your entity and transforming it into a well-developed form. It is essential to be aware of the Documents Required for MSME Registration to successfully complete the registration process of MSME. BizAdvisors.io is a reputed and trustworthy consultancy firm that perpetually assists individuals and provides guidance about MSME Registration, its documentation, and compliances.
Read our article:All You Need To Know About MSME Registration Certificate