MSME Registration : Benefits, Importance & Documents Required | Egniol

MSME Registration : Benefits, Importance & Documents Required

MSME Registration

The Government of India is responsible for implementing guidelines, laws and policies, making it no different for MSMEs. The regulation for MSME is carried out by the Ministry of Micro, Small and Medium enterprises with assistance and guidance from the government throughout the country. Hence, Small and Medium Enterprises are provided with incentives, assistance and access to become as good and competitive in comparison to other SMEs.

It is a very well-known fact that a major section of the Indian Economy is dependent on MSMEs, which means that the livelihood of many people is dependent on MSMEs, meaning that MSMEs play a significant role in our GDP contribution. For enterprises to grow, the government has started an MSME registration program.

Importance Of MSME Registration

MSME Registration : Benefits, Importance & Documents Required | Egniol

It is true that MSMEs are the backbone of our country and contribute a significant percentage to the Indian currency, registering as MSME online with the government under this structure provides several benefits like taxes, the beginning of business and much more. For MSMEs to get more serious and competitive in the market the portal for MSME registration went live on 2nd October 2006. Earlier to avail the benefits of the Government, MSMEs had to have a restricted investment. The MSMEs are categorised by the amount of investment plough in by them into the business. As micro companies are those whose investments are up to Rs. 25 lacs, small companies’ investments are up to Rs. 5 crores and medium, it is up to Rs. 10 crores. The same for the service businesses will be the amount for micro businesses up to Rs. 10 lacs, for small businesses up to Rs. 2 crores and for medium businesses up to Rs. 5 crores. 

Now, the MSME classification is changed by Atma-Nirbhar Bharat Abhiyan, where the industrial and service sector categories are not different and have integrated the composite criteria for both venture and yearly income. Now under the new categorised standard, if the annual revenue of a company is less than Rs. 5 crores, for a small company it needs to be up to 10 crores, a company with Medium-sized businesses with assets of up to 50 crores and revenues of more than 25 crores would be classified as large companies.

Documents Required For MSME Registration

Proper documentation is required for MSME registration online. To register MSME PAN and Adhar card is required. These documents are all that are required for the registration process. Company-related matters will be directly downloaded by the MSME website from PAN card to GST and all other tax-related information.

Benefits Of MSME Registration

MSME Registration : Benefits, Importance & Documents Required | Egniol

MSME registration benefits everyone who registers, and here is a list of a few of the many benefits that your business will enjoy: 

    1.  MSME certificate holders get a loan at a much lower rate than from a bank.
    2. One who holds an MSME certificate also gets the benefit of tax exemption.
    3. Government issues licences and certificates so in this case as well registered MSMEs are given more preference.
    4. For an enterprise to get easy access to loans and credits, MSME certificates are a must.
    5. If a registered MSME is applying and getting an ISO certificate, then they will be reimbursed for the cost incurred to get the certificate.
    6. It allows keeping credit of MAT (Minimum Alternate Tax) to carry forward for 10 to 15 years.
    7. The overall cost of starting an industry decreases after various discounts and rebates post-MSME registration.
    8. It gets very easy to acquire government tenders because the Udhyam registration portal of government E-Market, acquiring E-Tenders is easy and direct.

Therefore, this shows how important it is to register for MSME. Registering for MSME not only gives you an MSME licence but along with that comes a whole umbrella of benefits like tax exemptions, low-interest rate loans, government projects, etc. so it is important to register for all small businesses.

And our experts at Egniol provide you with all the knowledge, guidance and help for registering for MSME and many other required services that have benefitted more than 200+ till now.

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