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MSME | SSI registration
The Micro, Small and Medium Enterprises are considered as a very significant piece of India’s legacy economic model and a part of the critical supply chain for products and services. This sector is the job creator as well as play a crucial role in providing large-scale employment and industrialization of rural and backward areas. In 2015-2016, according to the National Sample Survey (NSS) 73rd round, there were around 633.8 lakh unincorporated non-agriculture enterprises in the country which are dealing in different economic activities providing employment to 11.10 crore workers.
Although getting MSME online registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.
Legalraasta can help your business obtain MSME Registration online to avail a host of benefits. MSME online registration or SSI online registration can be done through LegalRaasta in Delhi NCR, Mumbai, Bengaluru, Chennai & all other Indian cities.
What Is Included In Our Package?
Procedure For MSME/SSI Registration
What is MSME or SSI?
In India, MSME introduced in the year 2006. Actually, there are still some service sector that was not yet included in this sector was included in the definition of the Micro, Small and Medium-sized Enterprises making a historic change to this Act. Hence, leveraging the scope of the sector even now the government simplified the MSME Registration online with the paperless work.
The benefits of MSME registration include priority sector lending, power tariff subsidies, capital investment subsidies and excise and direct tax exemptions. Following are the conditions which need to be fulfilled to qualify under MSME Act.
- All the manufacturing enterprises which have invested less than 10 crores in machinery and plant are allowed to be registered as MSME.
- In service enterprises, the investment in plant and machinery should not be more than 5 crores.
- And in near future, if your enterprise exceeds the maximum limit, then it will not sum up as MSME.
What Are The Different Types of MSMEs?
There are 3 types of MSME or SSIs which can be classified as under:
Micro-enterprises are the smallest entities, of course. The investment under Micro manufacturing enterprises should be less than Rs. 25 lakhs in plant and machinery, whereas, the micro service enterprises should not exceed Rs. 10 lakhs investment.
In small manufacturing enterprises, the investment should be in between Rs. 25 lakh and Rs. 5 crores in plant and machinery, while in small service enterprises this investment limits between Rs. 10 lakh and Rs. 2 crores.
And if we’ll talk about the Medium manufacturing enterprises, then the investment should be in between Rs. 5 crore and Rs. 10 crores in plant and machinery, and for small service enterprises it should be in between Rs. 2 crore and Rs. 5 crores.
Benefits of MSME / SSI Registration
There are multiple benefits of MSME / SSI registration for small businesses:
- Cheaper bank loans : The rate of interest on loan offered to MSMEs is 1-1.5% lower compared to typical business loan interest.
- Easy access to credit : PM Modi has introduced the Mudhra Loan scheme, which provides loans to MSME / SSI without collaterals.
- Quicker approvals from state and central government bodies: Business registered under MSME are given higher preference in terms of government license and certification.
- Tax rebates : MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
- Cheaper infrastructure : Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
- Access to tenders : There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.
Frequently Asked Questions
Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognised MSE clusters.
The banks have, therefore, been advised to treat it as a thrust area and increasingly adopt the same for SME financing. Banks are always asked to take appropriate steps so that the flow of credit is smoothly done to the identified clusters of micro and small entrepreneurs from the Minorities Communities residing in the minority concentrated districts of the country.
The CGTMSE would provide cover for credit facility up to Rs. 100 lakh which have been extended by lending institutions without any collateral security. A nominal annual fee is charged by the CGTMSE to avail of the guarantee cover.