MSME registration criteria

Registered with MSME department applicant should be Indian citizen and having Pancard / Aadharcard. MSME registration process is so easy.

 

MSME registration criteria for Manufacturer is Plant and machinery approx cost must be not more than Rs. 10 crore for any micro small medium enterprise.

 

MSMe Registraiton for Service provider criteria should be for Equipments cost will be not more than Rs. 5 crorer.

 

Documents required for MSME registration

 

As per company documents are required like Aadhar card, Pancard, Bank account cheque, GST no. Import-export code number, Latest electricity bill, etc.

 

MSME registration for Manufacturing

 

After getting registered as a manufacturing unit you can get Mudra Loans, CGTMSE loans, Term Loans, Machinery Loans, also can get subsidies on loans, stamp duty exemption as per areas.

 

The government is interested in promoting micro and small manufacturing unit whose investment should be from 0 to 25 lacs in plant and machinery.

 

Government tender participation.

 

 

 

 

 

MSME registration Certificate

 

This certificate is required to avail of benefits from the Micro Small Medium Enterprise Ministry. for subsidies, reimbursement of expenses, Trade benefits, Import export supports.

 

You can avail government tenders and Public Sector Unit tenders also.

 

MSME Registration Eligibility

 

Those who are Indian citizens and availing Aadhar card and pancard are eligible along with more than 18 years old.

 

Manufacturer and Service providers are eligible to get MSME registration Certificate.

 

Service Contractors, civil contractors, labor contractors, manufacturing units, service providing units are eligible to get the MSME certificate as per the MSMED Act 2006.

 

MSME Registration is also known as Micro Small Medium Enterprise, SME Registration, DIC Registration, SSI Registration, DIC Registration.

Registration under the MSMED Act, 2006
The President under Notification dated 9th May 2007 has amended the Government of India (Allocation of Business) Rules, 1961. Pursuant to this amendment, Ministry of Agro and Rural Industries (Krishi Evam Gramin Udyog Mantralaya) and Ministry of Small Scale Industries (Laghu Udyog Mantralaya) have been merged into a single Ministry, namely, “MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SUKSHMA LAGHU AUR MADHYAM UDYAM MANTRALAYA)”

Micro, Small & Medium Enterprises – The Engine of inclusive growth & development

The registration under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is for facilitating the promotion and development and enhancing the competitiveness of Micro, Small and Medium enterprises.

What are Micro, Small and Medium enterprises?

The following slabs have been prescribed under the MSMED Act to determine the status of the Enterprise:

No.	Type of Enterprise	Manufacturing Industry (Investment in Plant and Machinery)	Service Industry (Investment in Equipment)
1	Micro	It does not exceed Rs. 25 Lakh	It does not exceed Rs. 10 Lakh
2	Small	Exceeds Rs. 25 Lakh but does not exceed Rs. 5 Crore	Exceeds Rs. 10 Lakh but does not exceed Rs. 2 Crore
3	Medium	Exceeds Rs. 5 Crore but does not exceed Rs. 10 Crore	Exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore

Provisional Registration: Provisional registration is granted to a unit at its pre-investment period to enable it to take necessary steps to apply for financial credit, land or an industrial set, water, power or telephone connections, etc.

Permanent / Final Registration: A provisionally registered industrial unit when it is about to go into production is to apply for the grant of Permanent / Final Registration. An existing and functioning industrial unit is eligible to apply for Permanent / Final Registration without going into provisional registration processes.

MSME Registration Benefits :

• Get Governemtn Subsidies.
• Get CGTMSE Loans.Start
• Exhibition expense reimbursement.
• Electricity Subsidy.
• GEMS Registration.
• Vendor Registration.
• Export Promotion Council Registration.
• StaStartup registration

Loans to Micro & Small Enterprises (MSEs)

Eligibility

Any individual / partnership firm / Public or Private Ltd. Companies desirous of promoting MSEs (Manufacturing sector) with investment in Plant & Machinery not exceeding Rs. 5 crore and Medium Enterprises with investment in plant & Machinery is above Rs. 5 Crore and upto Rs. 10 crores.

Extent of Finance

Need based (both fund based and non-fund based)

Margin

Working Capital/ Medium Term Loan a) No margin up to Rs.25000/- b) Credit limit over Rs.25000/-

Flexible approach:15% – 25% depending on the merits of each case

Security

Primary: i)   Assets created out of Bank finance Collateral: Obtention of collateral Security exempted Up to Rs. 5 lacs Over Rs. 5 lacs and up to Rs. 25 lacs, based on good track record and satisfactory financial position Over Rs.25 lacs at the discretion of the Bank

Interest

As per prevailing rates from time to time

Export Finance

Establishment of Letter of Credit Pre-shipment finance Post-shipment finance Assistance against Duty draw back

Micro and Small Enterprises (MSEs)– Definition of Micro, Small and Medium Enterprise Manufacturing and Service Segments.

	Manufacturing Sector	Services Sector
	Micro Enterprise	The investment in Plant and machinery ( Original Cost) does not exceed Rs 25 lakhs	The investment in Equipment does not exceed Rs 10 lakhs
	Small Enterprise	The investment in Plant and machinery ( Original Cost)is more than Rs 25 lakhs but does not exceed Rs 500 lakhs	The investment in Equipment is more than 10 lakhs but does not exceed Rs 200 lakhs
	Medium Enterprise	The investment in Plant and machinery ( Original Cost) is more than 500 lakhs but does not exceed Rs 1000 lakhs	The investment in Equipment is more than Rs 200 lakhs but does not exceed Rs 500 lakhs

Business Loans (Small Scale Industries) – CGTSI

ING offers loans to Small Scale Industries at competitive interest rates without any collateral security. Credit Guarantee Fund Trust for Small Industries [CGTSI] ING is one of the member lending banks for CGTSI. ING Ltd offers loans of up to Rs 25 lakhs to SSI units under CGTSI at competitive interest rates without any collateral security and / or third party guarantee. In addition the guarantee fee payable to CGTSI would be debited to the account. Minimum Loan Amount: No Minimum Amount Maximum Loan Amount: Rs 25 lakhs Eligibility: The SSI units engaged in activities like manufacturing, processing or SSSBEs, including Information Technology and / or Software industry are eligible.

Guarantee fee payable to CGTSI:

One time Guarantee fee of 2.5% of the credit facility sanctioned. Annual Service fee of 1% of credit facility on the outstanding loan amount as on March 31 each year.

Collateral: No additional collateral is required For more details, write to us at

ING Vysya Bank Limited

Interest Subsidy Agro Business

Interest Subsidy

The entrepreneur is required to furnish information in the application form for availing assistance for agro industrial project, agri infrastructure project and center for excellence. He is required to prepare the detailed project report and get it appraised by the financial institution providing term loan for the proposed project. The interest subsidy shall be granted towards interest on term loan from nationalised banks and financial institutions recognised by Reserve Bank of India. In case the term loan is granted by a co-operative bank, the entrepreneur is required to get the project appraised by GITCO or such organisation nominated by GAIC. The cost of the appraisal shall be borne by the entrepreneur.

The entrepreneur shall get back ended interest subsidy after the project has commenced the commercial production. The certificate from the bank/ financial institution is required to be submitted before disbursement of subsidy can take place. The interest subsidy payable to the entrepreneur will be sent directly to the bank / financial institution.

SME pharmas may get interest subsidy

THE government may provide an interest subsidy to small and medium-size (SME) pharma companies to upgrade their facilities in order to meet stringent quality protocols. This particular proposal in the draft pharma policy is getting support from different wings of the government. The Prime Minister’s Office is keen to take forward the proposal for extending 5% interest subsidy to SMEs facing a fund crunch in order to meet the health ministry’s revised good manufacturing practices (GMP). A group of ministers (GoM) reviewing the new pharmaceutical policy is likely to take a decision on the issue soon, an official source said. The Planning Commission has already accorded an in-principle approval to provide Rs 560 crore for the scheme in the Eleventh Plan. The proposal is likely to get a goahead even as finance ministry cautioned the government on the budgetary implications of providing numerous fiscal incentives proposed in the draft policy. Once implemented, the interest subsidy scheme is likely to benefit close to 2,000 SMEs drug makers. The scheme would also come to the rescue of drug makers in Gujarat and Madhya Pradesh, several of whom have closed down due to lack of capital while others are struggling to find resources to meet the new GMP requirements. Several companies have also defaulted on loan repayments due to paucity of funds. The new GMP norms notified by the Union health ministry became mandatory with effect from July 1, 2005. The new requirements are comparable with WHO GMP norms. While the new norms have helped in standardising drugs produced by the SME manufacturers to those available elsewhere in the world, the exercise has substantially increased the upgradation cost for manufacturers. It is felt by government officials that low-cost advantage of SME drug makers should be protected in the larger national interest by providing suitable fiscal incentive in the form of an interest subsidy. As per a report of the Development Commissioner (SSI), contribution of SSIs in Indian Pharma market is 50% by volume and 30% by value.

Micro, Small and Medium Enterprises Development (MSMED) Act, 2006

As per GR 2006 of MSMED.

SSI Registration, Small Scale Industry

Section 8 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides for filing of memorandum by a Micro, Small or Medium Enterprise.  Sub-section (2) of section 8 stipulates that the form of the Memorandum, the procedure of its filing and other matters incidental thereto shall be such as notified by the Central Government.

SSI Registration