Before attempting to comprehend what micro, small and medium enterprise registration entail it is necessary to first define msme registration portal. Micro, small and medium enterprise are the backbone of the economy. Micro, small and medium enterprise is the ultimate executive authority in charge of enforcing rule and regulation and law governing micro, small and medium enterprise. Msme registration portal is available to enterprise in both the manufacturing and service sector.
Now when we talk about micro, small and medium enterprise registration we are talking about a straightforward and quick process for registering micro, small and medium enterprise and small and medium enterprise. It provide a variety of benefit to enterprise including financial assistance and additional government subsidy. It aid in the development of infrastructure and the expansion of the company.
What are the benefit of obtaining micro, small and medium enterprise registration?
Micro, small and medium enterprise can benefit from micro, small and medium enterprise registration in a variety of way. The following are a few of them.
Assist with obtaining government tender.
Because the udyam registration portal is integrated with the government electronic marketplace and numerous other state government website that provide easy access to their marketplace and electronic tender micro, small and medium enterprise registration make it simple to obtain government tender.
Exemption from direct taxation.
As mentioned in the scheme by the government enterprise that enclose micro, small and medium enterprise registration can benefit from direct tax exemption in the early year of business based on business activity.
Bank loan with no collateral.
The indian government has made collateral free loan available to all small and micro enterprise. This program provide funding to micro and small enterprise. Both old and new enterprise are eligible to participate in this scheme.
The government of india introduced the lending guarantee fund scheme for micro and small enterprise to make collateral free credit available to the micro and small business sector. Existing and new enterprise are both eligible for coverage under this scheme.
Interest rate on overdraft are exempt.
Enterprise registered under micro, small and medium enterprise might receive a 1 per cent discount on their overdraft according to a system that vary per bank.
Expense for international standard organization certification can be claimed.
The registered micro, small and medium enterprise may request reimbursement for the operating cost incurred in obtaining international standard organization certification.
Electricity bill will be reduced.
This concession is available to any enterprise having an micro, small and medium enterprise registration certificate who submit an application to the department of electricity together with their micro, small and medium enterprise registration certificate.
Patent registration subsidy.
Enterprise that have received a certificate of registration from micro, small and medium enterprise are eligible for a generous 50 per cent subsidy. By submitting an application to the appropriate government this subsidy can be obtained for patent registration.
Eligibility for industrial promotion subsidy.
Enterprise that are registered under micro,small and medium enterprise are also eligible for a government recommended subsidy for industrial promotion.
Defend against postponed payment.
Buyer of micro, small and medium enterprise service and product have a tendency to defer payment at time. The ministry of micro, small and medium enterprise assist such enterprise by granting them the authority to collect interest on payment that have been deferred as well as delayed by the buyer. Reconciliation and adjudication must be used to resolve such disagreement in the shortest amount of time possible.
Special attention is paid to international trade show.
Financial assistance is provided to enterprise association and registered society, state and central government organization and organization connected with micro, small and medium enterprise on a reimbursement basis under the international co operation scheme for delegation of micro, small and medium enterprise business to other country. It is for the purpose of identifying new area for micro, small and medium enterprise participation by indian micro, small and medium enterprise in trade fair as well as international exhibition and buyer seller meeting as well as conducting international conference and seminar on micro, small and medium related topic.
Stamp duty and registration fee are waived.
In india all new industrial unit with micro, small and medium enterprise expansion would be exempt from paying stamp duty and registration fee.
Subsidy for bar code registration.
All micro, small and medium enterprise registered enterprise are eligible for a bar code registration incentive as stated in the scheme.
National saving income certificate performance and credit rating subsidy.
Micro, small and medium enterprise registered enterprise are eligible for national saving income certificate performance and credit rating subsidy as indicated in the scheme.
Eligible for a subsidy for industrial promotion.
According to the scheme all enterprise that are registered under micro, small and medium enterprise registration are eligible for the industrial promotion subsidy.
Tendering access.
There are a number of government bid that are solely available to micro, small and medium enterprise in order to stimulate small business participation in India.
The advantage of a reservation policy.
It provide greater consumer good production in small scale enterprise as well as expanded employment prospect through the establishment of small scale industry.
Purchase of plant and machinery is eligible for a 15 per cent credit linked capital subsidy scheme.
The ministry of micro, small and medium enterprise run a program called credit linked central goods service tax initiative subsidy scheme to help micro, small enterprise upgrade their technology.
The revamped scheme intend to help micro, small enterprise upgrade their technology by providing a 15 per cent capital subsidy for the purchase of plant and machinery.
Manufacturing and production sector reservation policy.
One of the major policy initiative for promoting this text center industry has been the statutory reservation of article for exclusive manufacture in the small scale industry sector as provided for in the industry development and regulation act 1951.
Who is eligible to register as an micro, small and medium enterprise?
Micro, small and medium enterprise registration is available to the following entity.
All micro, small and medium sized enterprise in india that meet the requirement can apply for micro, small and medium enterprise registration. Aside from micro, small and medium sized enterprise.
Limited liability partnership.
A private limited company is a firm that is owned by its shareholder.
One person enterprise.
Sole proprietorship.
Micro, small and medium enterprise registration is also available to public enterprise. Micro, small and medium enterprise registration is also available if the company is in the manufacturing and service sector.
Micro, small and medium enterprise registration is open to any company with a valid aadhar number. Because an aadhaar number is required for the granting of an micro, small and medium enterprise certificate.
What are the essential component of an micro, small and medium enterprise registration application?
The following are the important component of the micro, small and medium enterprise application for micro, small and medium enterprise registration.
Aadhar card.
General, other backward caste, scheduled caste and scheduled tribe social category.
Gender.
Physically challenged.
The organization name and type.
Individual and business permanent account number card.
Plant location as well as address.
Personal identification number code as well as country and state as well as district and city.l
Proof of workplace address.
Applicant phone number and email address.
The start date is the date on which the business will commence.
International financial system code and bank account number.
The company business activity.
Based on primary activity the national industrial classification 2 digit code was created.
If there is any other information on the company please include it.
Employees number.
Amount invested on plant and machinery.
What document do i need to register my micro, small and medium enterprise?
Aside from the information listed above the following document are necessary for micro, small and medium enterprise registration.
Applicant photo identity and proof of address.
A photograph of the applicant is required.
The applicant aadhar card.
Document pertaining to the company.
Address the concept of proof of working. A sale deed is required in the case of self owned property. A rental agreement and a letter of authorization from the owner are required in the event of the rented property.
Document pertaining to the bank.
A firm partnership deed is required in the case of a partnership.
Permanent account number card as well as memorandum of association and article of association and certificate of incorporation in the case of a company.
