MSMEs (Micro, Small and Medium Enterprises) are the backbone of any nation’s economy, so too in India. Recognizing this, and to promote entrepreneurship, the Indian government provides various subsidies, schemes & incentives to such enterprises. This registration is not mandatory but is required in case an entity wishes to avail the benefits provided to MSMEs by the government.
The following categories of enterprises are recognized:
Broad benefits available are:
The registration is completely carried out online, with the submission of online form along with soft copy of relevant documents. Application is submitted by furnishing company and personal information of the applicant. Any discrepancy in the submission will be notified which needs to be rectified. Soft copy of MSME certificate will be issued via email – no hard copy is issued.
Registration Certificate is issued within 2-3 business days.
MSME Registration is done under Micro, Small & Medium Enterprises Development (MSMED) Act, 2006. The MSME Act aims at facilitating the promotion, development and enhancing the competitiveness of micro, small and medium enterprises, and registration provides Micro, Small and Medium sized enterprises with a number of benefits and access to various subsidies and schemes.
No, MSME registration is not compulsory.
This is given for the pre-operative period and enables the units to obtain funding and approvals to become operational. With a PRC, an enterprise can secure loans and working capital from financial institutions/banks under priority sector lending as well as obtain various NOCs and permissions/ licenses, viz. for Pollution, Labour etc.
Permanent Registration Certificate is the actual MSME Certificate. Having this, allows the registrant to avail the various benefits and schemes available to an MSME (including tax exemptions, lower tariff and loan rates, etc)
The PRC expires at the end of five years or until the unit becomes operational or if the unit exceeds investment limits. One may re-apply if the unit is not yet operational or exceeds the limit.
Once the unit commences operation, then it can apply for the Permanent License. Permanent License remains valid till the time the unit does not cross the investment limit.