MSME Registration – Role of CA Community
MSME REGISTRATION – ROLE OF CA COMMUNITY
The Micro, Small and Medium Enterprises Development Act, 2006 is an act of the Parliament of India. According to the act, “any buyer who fails to make payment to MSMEs as per agreed terms or a maximum of 45 days, would be liable to pay monthly compounded interest at three times the bank rate notified by RBI.
In accordance with the (MSMED) Act, the enterprises are classified into two divisions:
Manufacturing Enterprises – engaged in the manufacturing or production of goods in any industry.
Service Enterprises – engaged in providing or rendering services
MSME definition based on investment in Plant and Machinery and turnover:
Manufacturing Sector and Service Sector:
Micro Enterprises … Investments in Plant and machinery not exceeding 1 crore and turnover not exceeding more than 5 crores
Small Enterprises … Investments in Plant and machinery not exceeding 10 crores and turnover not exceeding more than 50 crores
Medium Enterprises … Investments in Plant and machinery not exceeding 20 crores and turnover not exceeding more than 100 crores
The government has facilitated registration of Micro, small and medium enterprises to provide them with much-needed benefits for their protection and growth.
Taking into consideration the far-reaching announcements made today by the Finance Minister regarding putting at the disposal of MSMEs, a whopping sum of 3 lakh crores with a moratorium 0f 12 months and no requirement of collateral security for giving a fillip to the MSME sector, it becomes crucial for MSMEs to get themselves registered without fail for their own long term benefits.
Benefits of Registration as MSME (Additional benefits may be announced by the government following today’s announcements)
· Collateral free Bank Loan up to 5 Crores
· Reservation policies to manufacturing/production sector
· Special consideration on international trade fairs:
· Octroi benefits:
· Waiver of Stamp Duty and Registration Fees:
· Exemption under Direct Tax Laws:
· Bar Code registration subsidy:
· Subsidy on NSIC Performance and Credit ratings:
· Eligible for IPS subsidy
· Counter Guarantee from Government of India through CGSTI
· Protection against delay in payment
· Reduction in the rate of Interest from banks
· Waiver in Security Deposit in Government
· Concession in electricity bills:
· Reimbursement of ISO Certification
· Excise Exemption Scheme
· Preference in procuring Government Tenders
· 15% weightage in price Preference:
· 1% exemption on the interest rate on OD
· 50% subsidy for patent registration
- All the above benefits can be availed by us only if we are having registration of our unit/proposed unit as an MSME
Details required for Registration as an MSME
1. Name and Type of Enterprise / Business along with Date of Commencement of Business
2. Copy of PAN, Turnover of Organization and Number of employees working in the Enterprises
3. Location of Plant along-with Office Address, provide office address if address other than plant location
4. Copy of Aadhar Card, Email id of Applicant and Mobile Number of Applicant which is linked to Aadhar Card
5. Copy of cancelled Cheque of Organization
6. Main Business Activity and NIC 2 Digit Code of business activity of Organization
7. Investment in Plant & Machinery / Equipment and Equipment etc. to start your business
Since we are capable enough, we should take care of our clients and ensure that they do not have to go anywhere else for getting the registration done.
Further, as per Recent Decision/Announcements of Ethical Standard Board –
“A CA firm may get itself registered on Udyog Aadhar, a web portal of Ministry of Micro, Small and Medium Enterprises.”
Please keep all the details ready and visit the website “Udyog Aadhar” (MSME Registration) to get the registration done. No fee has been prescribed for registration.