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Online MSME registration process

It proposes to define SSI Registration on the basis of annual sales turnover rather than on investment basis which results in no distinction between manufacturing and service unit.

Enterslice India 1 Stories

Monday June 11, 2018 , 4 min Read

Micro, Small and Medium Enterprises (MSME) has been a backbone of the economic growth over the last few decades. MSMEs play a crucial role in providing large employment opportunities on low investments thereby reducing the major employment problems and also help in the industrialisation of rural & backward areas.

ORGANIZATIONS CONSIDERED AS ‘MSME’

MSME are classified into two classes:

1. Manufacturing enterprises: Organization engaged in the manufacture, production, processing or preservation of goods with the following limits as categorized below:

 MICRO ENTERPRISE- Investment in plant and machinery upto max 25 lakh

 SMALL ENTERPRISE- Investment in plant and machinery more than 25 lakh but to 5 crores

 MEDIUM ENTERPRISE- Investment in plant and machinery more than 5 crores but up to 10 crores

2. Service enterprises: Organization which is engaged in providing or rendering services with the following limits as categorized below:

 MICROENTERPRISE- Investment in equipment up to 10 lakh

 SMALL ENTERPRISE- Investment in equipment more than 10 lakh but up to 2 crores

 MEDIUM ENTERPRISE- Investment in equipment more than 2 crores but up to 5 crores

In order to promote the ease of doing business and align the definition of MSME with GST regime, recently the Government has proposed to change the criteria for classifying MSMEs.

It proposes todefine SSI Registration on the basis of annual sales turnover rather than on investment basis which results in no distinction between manufacturing and service unit.

The proposed thresholds are:

• 1.Turnover up to 5 crores- MICROENTERPRISE

• 2. Turnover up to 75 crores- SMALL ENTERPRISE

• 3. Turnover up to 250 crores- MEDIUM ENTERPRISE

Before proceeding with registration, one should have a clear roadmap of setting up of MSME

ROADMAP FOR SETTING UP ‘MSME’

1. Setting up the Project

For establishing MSME, the first and foremost thing is to select the project for providing the product/ service which could generate the sufficient surplus for the economy

2. Product selection

While finalising the product ensure its ease of availability, its accessibility to the market.

3. Technology Selection

Installation of modern machinery and equipments is most important for the efficient operation of MSME

4. Arrangement of finance

No MSME unit can operate without monetary support. Financial assistance in India for MSME units is available from a variety of institutions.

5. Filing of the single registration form at the website.

6. NSIC adopts certain procedures for hire purchase of machinery

7. Construction of Building

Designing of the factory building is an essential part

8. Getting the Utility Connections

Power and water supply for carrying the operation is necessary

9. Clearances

Enterprises has to obtain various clearances and permissions depending upon the nature of his unit and products manufactured.

10. Quality Certifications

To gain the strong position in this competitive environment Quality Certification has also become extremely important. Government has launched Schemes to provide Financial assistance for availing the certification.

REGISTRATION REQUIREMENT UNDER MSME

Though the MSME registration is not mandatory for the enterprises, it is always advisable to get registered as MSME under MSMED Act, 2006 because the government has provided numerous benefits to the MSME since it is contributing in the growth of the economy in terms of output, exports and employment opportunities.

Also, in recent years the MSME sector has been consistently grooming in comparison to the overall industrial sector and in order to promote it, the government regularly announces various schemes for its growth.

The registration process for MSME is simplest by filling up only one page i.e., Udhyog aadhaar memorandum through online mode at https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx.

The only information is required is Aadhaar number and name of the owner.