6 Essential Facts that you must know about SSI / MSME Registration | My First JUGEM

All the Small scale industries (SSI) or Micro, Small and Medium Enterprises (MSME) can register themselves under the MSMED Act. But it is not compulsory but will be beneficial if you do so. The several benefits include priority sector lending, capital investment 10 crores in plant and machinery, whereas enterprises of service must have no more than Rs. . 5 crores invested in plant and machinery. I will not know more about SSI registration and MSME registration.

What is exactly SSI / MSME Registration?
Every nation has some economic hopes from its young and small businesses. So, the Indian government having this mentality offers numerous advantages to such organizations like an easy loan, cheaper credit, tax exemptions etc. so as to The growth of SSI / MSME is a much faster pace and without enduring hardships. The registration of the MSIE or SSI registration (Regulated by the MSMED Act). easiest of government registrations to be granted.

MSME is classified into two categories:

Manufacturing enterprises
Service enterprise
Following are the table describing in term of investment in Plant and Machinery / Equipment as below:

Enterprise

Micro

Small

Medium

Manufacturing Enterprises

Rs 2,500,000

Less than Rs 50,000,000

Less than Rs. 100 million

Service Enterprises

Less than Rs 10, 00, 000

Less than Rs 20,000,000

Less than Rs 50,000,000

Is SSI / MSME Registration Mandatory Or Voluntary?
The Only Need For SSI Registration Is To Avail Of Subsidies And Benefits. So, It Is Completely Voluntary. Although, It Is Fairly Easy Registration To Get Quickly Whereas Many Businesses Opt For It Over Other Registrations.

Why should I apply before commencing operations?
The provisional registration certificate will not be the same as the previous term. from regulatory bodies, such as the pollution control board.

What documents are required for filing SSI / MSME registration?
Following are the documents required for the MSME and SSI registration:

Applicant's Aadhar Card
Business PAN card
Business Address Proof such as rent deed or utility bills.
Owner's Name
Category of the applicant (General, SC / ST or OBC)
Organization Name and type
Bank account details
Previous registration details of the enterprise
Date of commencement of the Business And Address
The Major Activity Of The Enterprise.
Code Of NIC Of The Enterprise.
Location Of Direct Industry Code.
The Number Of Persons Employed.
Investment In Plant, Equipment, And Machinery.
What Are The Benefits Of SSI / MSME Registration?
Easily Get government tenders.
Easily get various licenses and permits for your business.
Import Subsidy Of 15 Pasento On Fully Automatic Machinery In Case Of A Bank Loan.
ISO Certification Compensation.
There Is No Need For Filing Returns.
There Are Subsidies On Electricity Bills.
These Are The Priority Sector Lending.
Subsidies Will Be Provided Under Excise Laws And Direct Tax Laws.
Beneficial Interest Rates.
Why There Is A Need To Maintain Records?
Any SSI Entity That Fails To Follow Any Regulations Laid By The Government Will Be Deregistered. Moreover, In Case If You Exceed The Investment Limits Ultimately Your Registration Of A Firm will be canceled.

This article has been contributed by Sarubpreet Kaur who is a content writer with Legal Raasta. Legal Raasta is an online portal that assists company and startups with Company registration, NBFC Registration, GST registration, and ITR filing.