Have a small business? Avail government benefits for MSME.
Looking for availing Government benefits as small business?
Micro, small and medium enterprises should register
themselves under MSMED Act to avail benefits of MSME benefits provided by the
government. MSME registration provides
loads of benefits under this scheme like availing loans at less interest rates,
excise exemption, tax subsidies, capital investment subsidies and various others.
MSME stands for Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:
Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore;
A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
In case of the above enterprises, investment in plant and machinery is the original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006 .
Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below:
A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh;
A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore;
A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.
Documents required For MSME registration:
PAN card & Adhaar card, Identity proof of Proprietor/Partners/Directors.
Previous Certificates- Any Previous registration certificates under the MSME Act.
Proof of constitution- Proof of constitution of business i.e. partnership deed or incorporation certificate, etc.
Identity Proof- Proof of identity of the promoters.
Licences and Bills of Machinery- At times, need to submit a copy of industrial license. Further, all bills and receipts related to purchase and installation of plant and machinery are required to be submitted on demand.
Photograph- Passport size photo of the proprietor or authorised representative.
Plant Blue Print- Plant blue print in case the main activity of the entity applying for the MSME registration is manufacturing.
Proof of commencement of business is required.
Other Information- May need applicant’s social category, location of plant, date of commencement of business, bank details, etc.
Proof of address of the business.
Proof of bank A/C- Cancelled cheque of the bank account associated with the business.
Sale bill and purchase bill- Submit a copy of sale bill of each end product that it will supply. Also, for each raw material, a purchase bill.
Other document- Any other document that the state government may require will have to be provided.