8.6 C
New York
Tuesday, October 20, 2020
Home Business All about MSME Certification: Procedure, Benefits and Documents Required

All about MSME Certification: Procedure, Benefits and Documents Required

Over the past 5 decades, MSMEs have emerged as a driving force for India’s economy. The sector offers a host of services and manufactures 6000+ products, starting from traditional goods to hi-tech ones. 

This highly dynamic industry contributes to the nation’s development, innovation, employment generation, exports, etc. Considering such potential, the MSMED Act was introduced under which registered enterprises can enjoy various benefits, including MSME loans.  

A few MSME highlights

  • 63.38 million MSMEs India is the 2nd largest base following China.
  • 111 million people – Offered employment opportunities by MSMEs in India.
  • 45% – Contributed by MSMEs to the country’s manufacturing output.
  • 50% – Contributed to the total exports of the nation.

What is the definition of an MSME?

To begin with, the MSME full form is micro, small and medium enterprise. Based on the two categorizations – service and manufacturing entities, MSMEs are defined as follows. 

  1. Manufacturing entities are segregated according to their investments in plant and machinery.
    1. Micro – Below Rs. 25 Lakh.
    2. Small – Between Rs. 25 Lakh and Rs. 5 Crore.
    3. Medium – Within Rs. 5 Crore and Rs. 10 Crore.
  2. Service providing enterprises are separated based on their investments in equipment.
    1. Micro – Below Rs. 10 Lakh.
    2. Small – Between Rs. 10 Lakh and Rs. 2 Crore.
    3. Medium – Within Rs. 2 Crore and Rs. 5 Crore.

There are certain rules to establish a successful business, certification being one of those. While registration is not mandatory, an MSME certification enables enterprises to enjoy a plethora of benefits, including those provided by the government.  

What are the benefits of MSME certification?

  • Various government tenders are open only for the MSMEs.
  • MSME loans are efficient financing modes for these organisations. Lending organisations sanction these loans easily through a simplified procedure. 
  • Borrowers can avail a comparatively lower rate of interest on the credit. 
  • A registered MSME can enjoy several tax rebates. Such other concessions bring down the cost of establishment significantly.    
  • They are exempted from paying Registration fees and Stamp Duty. 
  • Registered enterprises can pay a One Time Settlement Fee for their non-paid amounts. 
  • Businesses which are MSME certified receive first preference from the govt. regarding certification and license. 
  • They also pay lower rates for infrastructure.  

Besides, MSME certification brings credibility and clarity in the functioning of an enterprise. The government-authorised department also helps promote new businesses and help them best benefit from the financial assistance provided in the form of MSME loans.  

What is the procedure to register for MSME?

The MSME registration process is simple and hassle-free as applicants can choose to apply both online and offline. Below is a stepwise procedure.

Step 1: Access the registration form, either online or offline.

Step 2: Fill up with accurate details, including address, Aadhaar, PAN, industry, 2-digit NIC, mobile number, and account details.

Step 3: Once done, upload the registration form along with all relevant documents.

Step 4: Receive your MSME registration number successfully.

What are the documents required to submit?

READ  How To Get Your CIBIL Score and Credit Report For Free
READ  Here’s How to Send Money from Credit Card to Bank Account for Free

Following are the important documents which every applicant needs to deposit.

  • Address proof of the business.
  • Partnership Deed/ AoA or MoA.
  • Purchase bill and sale bill copies.
  • Copies of the bills and licenses of purchased machinery.

Once you have the certification in place, plan for business expansion and avail MSME loans to finance the growth. There are various benefits of taking an MSME loan. Reputed NBFCs like Bajaj Finserv offer funds up to a limit of Rs. 30 Lakh. You can either apply through their online application form or look for pre-approved offers.

Pre-approved offers not only to make the loan availing procedure simplified but also save time. Such schemes are valid on a range of financial products like business loans, home loans, personal loans, etc. 

Several MSMEs in the country are spreading their domain across diverse sectors. Enlist and certify your business to enjoy multiple benefits and make it more competitive with affordable MSME loans.

Seema Gupta is a well-known financial and tech advisor with the abilities to keep a track and predict the market trends with the utmost accuracy. Her extensive knowledge in finance and tech is remarkable as she has worked on different financial and sectors dealing with the entire range of loans. She is also an expert in writing many finances and tech related articles and blogs, so she is a renowned finance blogger too.
- Advertisment -

Most Popular

How Candle Boxes Glory The Brand Through Beautiful Packaging

Candle boxes are quite popular, and their demand is increasing in the consumer market due to their added benefits and specifications. They are highly environmentally...

Getting trending designs with help of interior designers

There has been a tremendous change to the rise in population of the country which has brought an increase in demand for buildings for...

8 Essential Concepts about SEO Content Writing Services

SEO content writing plays a significant role in increasing traffic on a particular website. Also, the SEO content is organic and easy for the...

The Roles of Food Packaging Boxes for Food Safety

When we think and speak about food safety, a crucial factor is typically overlooked. The consumers, media, regulators, and the industry tend to focus...