The abbreviations MSME and SSI stand for Micro, Small, and Medium enterprises & in the Small Scale Industries respectively. MSME or SSI in India comprises a vast majority of the business & industrial sector and the economy. They are classified on the basis of various categories; for instance, type of industry or size of the industry, choice of business activity, etc.
The registration of MSMEs or SSIs‘s not mandatory but it helps enterprises to avail of various government subsidies and benefits like quick loans at low-interest rates, tax exemptions, incentives, and other relief from the government, etc. Therefore, it is beneficial to have Udyog Aadhaar registration in India. Get MSME Registration online in India with the help of Company Vakil Experts. The following enterprises come under the ambit of MSMEs and SSIs –
- Micro Enterprises: The enterprises engaged in the manufacture or production of goods, where the investment in plant and machinery is less than INR 25 Lac and in the case of enterprises engaged in providing or rendering services where the investment is less than INR 10 Lac.
- Small Enterprises: The small enterprises engaged in the manufacture or production of goods, where the investment in plant and machinery is more than INR 25 Lac but less than INR 5 Crores, and in the case of enterprise engaged in providing or rendering services where the investment is more than INR 10 Lac but less than 2 Crores.
- Medium Enterprises: The enterprises engaged in the manufacture or production of goods, where the investment in plant and machinery is more than INR 5 Crores but less than INR 10 Crores, and in the case of enterprises engaged in providing or rendering services where the investment is more than INR 5 Crores but less than 5 Crores.
- Tax exemption
The MSME Registration Certificate helps the enterprise in availing tax certain exemptions from certain direct taxes like exemption of income tax and capital gain tax The government also provides such enterprises with various subsidies to encourage trade and uplift the status of these enterprises. Such subsidies are related to power and industrial purpose. - Rate of Interest
Registered MSME Online / SSI online are eligible to avail of loans at a cheaper rate of interest. The rate of interest is 1% to 1.5% lower than interest charged on normal bank loans. Whereas such a low rate of interest is not available to traditional business enterprises. The Mudhra Loan Scheme launched by the PM, Shri Narendra Modi facilitates loans to Micro, Small, and Medium Enterprises without any collateral. - Credit facility
Availing credit is a tedious and crucial part of a business. For the purpose of providing easily accessible credit services to Small Industries, a Credit Guarantee Scheme is introduced (CGTMSME) - Support from Government
Enterprises incorporated having Udyog Aadhaar Numbers get priority in terms of certification and license issued by the Government. - Infrastructure Facilities
Small Scale Industries get various infrastructure facilities like electricity and power subsidies. Also, the material required for construction of the factory or building is available to the factory at subsidized rates from government.
SSI / Udyog / MSME application can be registered Online via the Udyog Aadhaar Registration portal by the government or offline by submitting the application form in duplicate to be submitted at your nearest NSIC -Zonal/Branch Office.
Alternatively – Company Vakil can register your application, we will process your application through every stage, and communicate through the government portal.
- Provisional Registration
A provisional certificate can be obtained when the unit is in the pre-operative stage and helps the SSI unit obtain term loans and working capital. This license is given for five years. One could apply for this certificate online through the state website or by applying in the concerned zonal department. - Permanent License
After obtaining the provisional certificate, one should start the production and manufacturing process in order to obtain a permanent license - Requirements for Permanent Registration Certificate
For obtaining the permanent certificate, the following must be considered:- The unit should have obtained all clearances from the pollution control board, drug control board, etc.
- The unit should not violate any location restriction.
- The original value of the plant including machinery should be within the prescribed limits for which you are applying.
- The unit should not be a subsidiary, owned or controlled by another industrial undertaking.
- Grant of Certificate
Once the application is approved by the Registrar, a certificate of registration shall be issued.
The abbreviations MSME and SSI stand for Micro, Small, and Medium enterprises & the Small Scale Industries respectively. MSMEs in India comprise a vast majority of the business & industrial sector and the economy.
The registration of an SSI is not mandatory but it helps enterprises to avail of various government subsidies and benefits like quick loans at low-interest rates, tax exemptions, incentives, and other relief from the government, etc. Therefore, it is beneficial to get an SSI Registration in India. The following enterprises come under the ambit of MSME. –
- Micro Enterprises:
The enterprises engaged in manufacturing or production of goods, where the investment in plant and machinery is less than INR 25 Lac, and in the case of enterprises engaged in providing or rendering services where the investment is less than INR 10 Lac. - Small Enterprises:
The small enterprises engaged in the manufacture or production of goods, where the investment in plant and machinery is more than INR 25 Lac but less than INR 5 Crores, and in the case of enterprises engaged in providing or rendering services where the investment is is more than INR 10 Lac but less than 2 Crores. - Medium Enterprises:
The enterprises engaged in the manufacture or production of goods, where the investment in plant and machinery is more than INR 5 Crores but less than INR 10 Crores, and in the case of enterprises engaged in providing or rendering services where the investment is more than INR 5 Crores but less than 5 Crores. MSMEs and SSIs can be registered through an online application that is provided by the prescribed state website where one is applying for registration or by submitting the application form in duplicate which is to be submitted to the concerned Zonal/Branch Office of NSIC located nearest to the unit.
We at Company Vakil take care of all the applications to be submitted to the government portal / NSIC zonal branch for your MSME certificate. Our Associates and Legal experts are available to guide you through the process.
To support Micro, Small & Medium Enterprises, the Government of India has come up with various subsidies, schemes, and incentives to promote small and medium industries in India. To avail of the benefits of the Central or State Government and the Banking Sector, MSME Registration is required. With an MSME / SSI / Udhyog Aadhaar Certificate, It becomes eligible to enjoy the benefits. Following are some of the broader benefits.
- Lower rate of interests
the rate of interest is 1% to 1.5% lower than the interest charged on normal bank loans. Whereas such a low rate of interest is not available to traditional business enterprises - Collateral free loans
The Mudhra Loan Scheme launched by the PM, Shri Narendra Modi facilitates loans to MSMEs without any collateral. - Credit facility
The Ministry of Micro, Small and Medium Enterprises, Government of India, and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises - Easiness to get licenses, approvals, and registrations
It has made it very easy for enterprises that are having MSME certificates to obtain Licenses, approvals, and registrations in any field for their business from the respective authorities wherein an MSME Certificate is given utmost importance. - Waiver of stamp duty and registration fees
SSI Registration is exempted from payment of Stamp Duty and Registration fees - Barcode registration subsidy
Enterprises that have Udyog Aadhaar Registration in India can avail Bar Code Registration subsidy - Special consideration in international trade affairs
Micro, Small, and Medium enterprises are encouraged to participate and delegate with other countries to explore new areas of expansion for Small Scale Industries, participation by Indian MSME‘s in international exhibitions, trade fairs, and buyer and seller meets are encouraged by the Government of India and Ministry of Micro, small and medium enterprise - The Ministry of Micro, Small, and Medium Enterprises gives the following benefits to enterprises that are registered while making applications for Government Tenders:
- Issue of tender sets are free of cost
- Waiver of Security Deposit up to the Monetary Limit
- Preference in procuring government tenders,
Enterprises with Udyog Aadhaar Registration in India, have a preference in procuring government tenders. Special treatment is given to SMEs with Registered Udyog Aadhaar Certificates, in the tender process. - Tax exemption
Udyog Aadhaar or MSMEs can enjoy Direct Tax Exemption in the initial year of business, as mentioned in the scheme by Government which varies in from business activities being carried out. - Protection against delayed payments
The Ministry of Micro, Small, and Medium Enterprises gives protection to businesses with SSI Registration Certificates, against delay in payments from Buyers and the right of interest on delayed payment, with support for conciliation, arbitration, and settlement of disputes in minimum time. - Concession in electricity bills
SSI Online Registration can avail Concession on electricity bill by making an application to the electricity department along with SSI / MSME Registration Certificate - Other Subsidies
Includes reduction or reimbursement of fees for IPR services like Patent filing, Trademark Filing Subsidies, etc.
WHAT WILL YOU GET?
MSME Registration Certificate and MSME Memorandum
Timeline
FAQ
MSME REGISTRATION
What is MSME or SSI?
MSME means Micro, Small, and Medium Enterprises and SSI means Small Scale Industries. Following is the bifurcation for the same given under the MSMED Act, 2006 of India:-
1. A MICRO ENTERPRISE is an enterprise where investment in plant and machinery does not exceed Rs. 25 lahks;
2. 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 crores;
3. 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.
What are the Documents required for MSME Certificate?
No documents are required as such just a Soft Copy of a Valid Aadhar Card & PAN Card, plus an Information Sheet has to be filled up and we will take care of the rest.
Benefits of having an MSME Registration Certificate / SSI Certificate Online?
There are a lot of benefits to having an SSI Certificate online, some of them are as follows:-
1. Collateral Free Loan from Banks as given under the scheme
2. 50% Subsidy in Trademark Application Fees of a Company, LLP, or Partnership Firm.
3. 50% subsidy for patent registrations in India
4. Works a Valid Proof of Registration for opening a Bank Account.
5. Reservation policies to manufacturing/production sector:
6. Makes it very easy to get Licenses, approvals, and registrations in India:
7. Octree benefits via refunds:
8. Exemption & Waiver of Stamp Duty and Registration Fees in many cases:
9. Exemption under Direct Tax Laws in initial years as mentioned by the government for your business activity:
10. Special consideration is given on international trade fairs:
11. Subsidy on Bar Code registrations:
12. Subsidy on NSIC Performance and Credit ratings as mentioned in the Scheme:
13. Eligible for IPS i.e. Industrial Promotion Subsidy
14. Counter Guarantee from the Government of India through CGSTI
15. Protection against delay in payment i.e. Every business under the scheme can file a case against the buyer for delayed payment.
16. Reduction in rate of Interest from banks
17. Concession in electricity bill is given:
18. Benefit of Reimbursement for ISO Certification
19. Excise Exemption Scheme in Initial Years
20. Waiver in Security Deposit while applying for Government
21. Preference in procuring Government Tenders
22. 15% CLCSS subsidy to Purchase Plant & Machinery for Technology Upgradation.
23. 15% weightage in price Preference can be availed:
24. 1% exemption on the interest rate on Over-Draft
In how much time will I get my MSME Registration Certificate through Company Vakil?
As you fill-up the Information Form and submit the documents, the MSME Certificate and Memorandum would be emailed to your mail id in 2 hours to 1 working day.