The msme development act of 2006 govern these enterprise. Let us start with the msme development act definition of msme registration.
Previously the msme development act divided these enterprise into two category manufacturing and service and defined them based on their investment limit. However according to a recent announcement the distinction between the manufacturing and service sector has been erased and additional turnover criteria have been imposed in addition to the investment limit criterion.
The following is the procedure for obtaining msme certification in india via the internet.
Fill out the online form on the msme website with all of the requested information.
Personal details. Aadhar number and name of owner. The name of the owner must match the name on the aadhar card issued by unique identification development authority of india in order to be validated. The applicant would be unable to continue filling out the form if his name does not match that on the aadhar card. For validation an one time password is given to the cellphone number registered with unique identification authority of india.
Permanent account number. Co operative as well as private limited corporation and public limited company and limited liability partnership all require a certificate. It is optional in the case of other organisation.
Bank detail. Account number and international financial system code of the bank account used to run the business.
Enterprise details.
Name of business as well as kind of organisation and location of plant as well as address of business and date of business start up.
Manufacturing as well as service is a major activity.
District industry center.
National industry classification code.
Investment in plant and machinery.
Submit the completed application form.
After clicking the submit button an one time password is created and delivered to the applicant registered email address and cellphone number. Enter the one time password that was sent to you.
Before hitting the final submit button complete the captcha.
If the applicant does not have an aadhaar number but has applied for one he may provide the following document as an alternative.
Aadhaar enrollment identity slip as well as a copy of the request for aadhar enrollment.
Bank photo passbook as well as voter identity card and passport as well as driving license and permanent account number card as well as employee photo identity card issued by the bank.
The benefit of msme certification in india.
When supplying good or service to client who do not pay on time msme profit in particular. The maximum time is 45 day if the buyer agreement does not include a specific payment date. If the buyer does to pay within this time frame he will be charged compound interest with monthly rest at 3 time the reserve bank of india rate.
Bank loan that are subsidised and have low interest rates.
Benefit in the form of refund and discount are provided to these enterprise under the income tax and the good and service tax.
Credit is readily available. In this case your credit score is equally crucial.
These enterprise have the exclusive right to manufacture the item.
Micro, small and medium enterprise owner are also eligible for trademark as well as patent registration reduction and concession.
In various way the federal and state government have aided us.
Let us look at some of the benefits that the government provide to msme.
Collateral free borrowing. The loan guarantee fund trust for micro and small enterprise was established to provide credit without the requirement for collateral and third party guarantee. In addition in the event that medium small enterprise unit default the guarantee trust absorb the loss up to 85 per cent of the defaulted amount.
Enterprise that use this guarantee insurance are charged a guarantee as well as an annual service fee. The table below provide further information about the maximum guarantee that the trust can provide.
Support for technology upgrade. The credit linked capital subsidy scheme offer qualifying medium small enterprise unit with a 15 per cent capital subsidy up to a maximum of 15 lakh for technology upgrade.
The technology up gradation support to msme registration initiative help manufacturing msme registration enhance their competitive by using energy efficient technology. Technical education quality improvement programme provide a capital subsidy of up to ten lakh and 25 per cent of the project cost. The government will pay for 25 per cent of the project with the other money coming from bank and financial institution.
Improved product quality support. The technical education quality improvement programme also provide subsidy to manufacturing msme registration unit to assist them in obtaining national licence allowing them to compete more successfully. It cover up to 75 per cent of the real cost of obtaining product quality.
Certification licence from national and international standard body. The government provide 1.5 lakh per msme registration for product licencing to national standard and 2 lakh per msme registration for product licencing to international standard.
Establishment of business incubator. The support for entrepreneurial and managerial development of small and medium enterprise through Incubator programme aim to support new business idea by providing financial assistance ranging from 75 per cent to 85 per cent of the project cost up to a maximum of rupees 8 lakh per idea as well as unit with a total of rupees 62.5 lakh for ten ideas. Any medium small enterprise with a new company concept may contact these business incubator. They can get up to 2.50 lakh as well as 1.28 lakh and 0.22 lakh for infrastructure and training as well as administrative expenditure for ten idea respectively.
International standard organization certification support. Under this program each unit gets paid for 75 per cent of the certification cost up to a maximum of rupees 75,000 in order to obtain international standard organization certification.Power cost discount. Under this plan micro, small and medium enterprise registered enterprise can get a discount on their electricity bill by submitting an application to the electricity board together with their udyam registration certificate.
