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MSME/SSI RegistrationIn order to be considered for assistance by the United States government through the Manufacturing and Services Sector (MSME) / Service-Sector Initiatives program, you must apply for registration with your local Economic Development Agency. The agency will then process your application with various federal agencies including Small Business Administration (SBA) Please note that if you do not register with your local Economic Development Agency, you will be unable to apply for assistance. You may contact your local Economic Development Agency or SBA Office for more information on this topic. Registration with the Manufacturing and Services Sector (MSME) / Service-Sector Initiatives program is voluntary but encouraged. Your application will be reviewed and if you are approved, your company will become eligible to apply for funding, training, and other assistance through the program. Although getting MSME online registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector. Leciel Consulting can help your business obtain MSME Registration online to avail a host of benefits. MSME online registration or SSI online registration can be done through Leciel Consulting in Chandigarh
What Is Included In Our Package?
Document for MSME registrar
Obtain MSME certificate
Procedure For MSME/SSI Registration
Complete our MSME Form/SSI Form
You just need to fill our simple msme regisstration form which would ask about your basic information. In case of ssi registration, a ssi ssi registration form will be filled. This would be required while filing your application with the department.
Preparation of Documents
According to the details provided to us, we will draft your documentation accordingly.
Filling MSME/SSI Application
Going further, we will file your application along with the required documents to MSME registrar. Before submission, our expert will verify your documents properly.
Your work is completed
Once the SSI/MSME application is approved and your MSME certificate/SSI certificate is issued, we shall send it to you via email and courier.
What is MSME or SSI?In India, MSME introduced in the year 2006. Actually, there are still some service sector that was not yet included in this sector was included in the definition of the Micro, Small and Medium-sized Enterprises making a historic change to this Act. Hence, leveraging the scope of the sector even now the government simplified the MSME Registration online with the paperless work. The benefits of MSME registration include priority sector lending, power tariff subsidies, capital investment subsidies and excise and direct tax exemptions. Following are the conditions which need to be fulfilled to qualify under MSME Act.
- All the manufacturing enterprises which have invested less than 10 crores in machinery and plant are allowed to be registered as MSME.
- In service enterprises, the investment in plant and machinery should not be more than 5 crores.
- And in near future, if your enterprise exceeds the maximum limit, then it will not sum up as MSME.
Benefits of MSME / SSI RegistrationThere are multiple benefits of MSME / SSI registration for small businesses:
- Cheaper bank loans : The rate of interest on loan offered to MSMEs is 1-1.5% lower compared to typical business loan interest.
- Easy access to credit : PM Modi has introduced the Mudhra Loan scheme, which provides loans to MSME / SSI without collaterals.
- Quicker approvals from state and central government bodies: Business registered under MSME are given higher preference in terms of government license and certification.
- Tax rebates : MSME / SSI registered businesses enjoy multiple income taxes and capital gains tax subsidies from the government.
- Cheaper infrastructure : Charges are lower for MSME registered company for facilities such as electricity and VAT exemptions. In fact, other business services such as patents are also cheaper for MSMEs.
- Access to tenders : There are multiple government tenders which are open only to MSMEs to promote small business participation in the India.
Frequently Asked Questions
How do you get MSME Registration?
>Although, there is no compulsion to get MSME registration but is always advised to do so as it provides lots of benefits to the enterprises registered under MSME Act. It will save you from a lot of inconveniences later on. After assigning you the Provisional MSME Certificate and you can begin with your production and even apply for a Permanent Certificate which will add more advantages for you. Always apply for provisional registration at an initial stage of the business.
Is SSI/MSME Registration voluntary or mandatory?
As said above, SSI/MSME registration is totally voluntary. Businessmen and entrepreneurs usually get this done to utilise the advantages offered under it. The registration process is quite easy and simple. You can easily avail it (provided you have a manufacturing plant or a commercial space where you render services), many businesses opt for it over other registrations.
Why should I apply before commencing operations?
It is advisable to get a Provisional SSI Registration Certificate (PRC) before starting your operation in your enterprise. The PRC will work smoothly for you and will help you out with particular NOCs and clearances from regulatory bodies.
What documents are required for the application?
If your business or enterprise is listed under Schedule –III of Industrial Licensing Exemption Notification, then you can easily apply for PRC without an industrial license. Other units must first acquire an industrial license. All the clearances should be obtained by enterprise whether it be statutory or administrative. For example, a drug license under the drug control order, if required. The PRC is issued based on the application form. No field enquiry is made.
For how long is an MSME Provisional Registration Certificate (PRC) valid?
The validation of a PRC is for 5 years and if the unit is still not under operational then you may still re-apply for it. As soon as you start with your operations, you can easily apply for the Permanent License.
How does SSI/MSME help me get a loan from a bank?
MSMEs are recognized by all the institutions and banks. Special schemes are drafted to recognize them as well. Banks prefer MSMEs instead of normal enterprises to lend loans. The possibility of getting a sanctioned loan is much higher in a case of MSME. Bank loan interest rates will also be lower. There may also be preferential treatment in case of delay in repayment.
What benefits are given to MSME Registration by state and central government?
Many state government prefers enterprises which are registered under MSMED Act. Subsidy such as on power, taxes, and much more is offered by state governments. In most of the states, sales tax exemption is provided purchase preferences is given on goods produced. The enterprise may also relish excise exemption scheme and exemption from certain direct taxes in the initial years of your business.
How is the value of plant and machinery computed for SSI registration?
While computing the value of Plant and Machinery, only original value is asked to be taken into account as per the MSME notification.