MSME Registration Process in Noida
MSME- WHAT DOES THIS MEAN? MSME stands for Micro, Small and Medium Enterprises. Micro, Small and Medium- besides t-shirts, you can apply these labels to enterprises as well, based rather obviously on their sizes—basically anything that’s not a large enterprise or bigger, can be placed under the MSME banner. Most of the start up companies and other upcoming enterprises you see around you fall into the MSME category. Both the manufacturing as well as service enterprises are a part of the MSME. We are providing MSME registration service in ahmedabad,Gujarat,india. WHAT IS IMPORTANCE OF MSME? From the point of view of the nation’s economy, these are a goldmine in contributing to its substantial growth. The enterprises falling within the MSME bracket are considered to the backbone of the economy—accelerating its development. More importantly, MSMEs play a vital role in balancing out and providing equitable development for everyone—the necessity of which is paramount. Since these enterprises are so important for our country, our government does whatever it can to support and encourage the development of a lot more such enterprises. For successfully promoting the idea of MSME, the government has launched the MSMED act—on the basis of which many incentives are provided in the form of subsidies, development schemes, etc solely for the benefit of the MSMEs. These benefits, being provided by the Central or State Government along with the banking sector, are easily available upon registration. WHICH KIND OF BENEFITS OF MSME REGISTRATION? Affordable bank loans Affordable bank loans at a significantly lower rate (1-1.5%) of interest when compared to that of the loans that are usually provided by the banks for businesses. Easily Available Credit Easily Available Credit without having to provide collaterals under the Mudra Loan Scheme introduced by the current government. Quick Approval from the Governments Quick Approval from the Governments, both state and central, since they really want to encourage these enterprises. This means they provide the licensing and certification done at a much higher pace than what’s usually expected of our government bodies. Taxes Made Better Taxes Made Better- Subsidies are provided by the government on income as well as capital tax gains. Along with this the access to numerous tenders belonging to the government have been exclusively granted for the MSMEs in the hopes to promote them. Benefits from Central Government Benefits from Central Government are provided from time to time, in the form of scheme announcements for the benefit of the MSMEs, such as Credit Guarantee Scheme. Reservation Policy Reservation Policy is one of the important advantages provided by the Central Government in the form of a policy. To help avoid the stiff competition, the central government has given exclusive rights to manufacture certain products only to this sector. Credit Guarantee Fund Trust Credit Guarantee Fund Trust is a scheme under which the MSMEs can avail a loan upto Rs.50 lakh without any collateral. As the MSMEs are usually run by the poor and the underprivileged, RBI has directed banks to sanction such amounts to MSMEs collateral-free. WHICH DOCUMENTS ARE NECESSARY FOR MSME REGISTRATION? Proof of ownership of Premises If the premise is self-owned– Property Allotment letter, possession letter, lease Agreement or Property tax receipt. If the entity has a municipal license in the name of the entity or its director, then no other proof of legal possession is required. In case the premises are rented– The business entity should ideally submit a proof of legal possession like rent receipt and/or NOC from landlord, with his ownership proof supported by utility bill. Sale Bill copy and Purchase Bill copy Business is required to submit a photocopy of sale receipt related to each end product that it will supply. Also, for each raw material purchase, a photocopy of purchase receipt has to be submitted. Partnership Deed/MoA and AoA If the business entity is a partnership firm, a copy of its partnership deed needs to be submitted. If it’s a registered partnership firm, it will have to submit its registration certificate too. If the business entity is a company, a copy of its MoA and AoA along with its CoI has to be submitted. Along with it, the company will also need to submit a copy of board resolution authorizing a director to sign the MSME application, and a copy of its resolution passed in the general meeting. Copy of Licenses and Bills of Machinery Purchased In case the end products require a license under Industrial Development and Regulation Act,1951, a copy of the industrial license from Govt. of India. Also, all purchase receipts and bills of plant and machinery installed are to be submitted on demand.