What is MSME and what is its registration process for industries?

Some rules have been made for MSME industries by the Ministry of Micro, Small and Medium Enterprises, Government of India. Whatever rules, regulations and laws related to micro, small and medium industries exist in the country and this ministry is the supreme body or institution for the creation of new laws if needed. The economic strength, hope and business of every country depends more on the young entrepreneurs. The Government of India provides the facility of easy registration to MSMEs keeping in mind that small and big business organizations do not face difficulties in their business.

MSME is a small size organization for investment, which can have skilled and unskilled traders. Which plays a good role in strengthening the Indian economy by providing employment opportunities to a large number of unemployed. They contribute to exports, boost manufacturing sector and support large industries by supplying raw materials, basic goods. Government of India gives subsidy to promote various schemes through companies or business registered under MSMED Act 2006.

Importance of MSME in India

MSMEs account for 45% of the total direct and indirect exports in the Indian economy. MSME registration is essential to avail the benefits under the Central or State Government and Banking MSME Act.
Under this, you will get low rate of interest, exemption in excise duty, scheme tax subsidy and many other benefits in business. This is an optional registration, but you are required to have Udyog Aadhaar registration to avail the exemption.
You can get MSME certificate for any type of industry like sole proprietorship, partnership or any other type of business.

Types of MSME

MSME comes under any of the three categories of enterprises, namely micro, small and medium. MSME industry is the backbone of any economy. It acts as an engine to promote equitable growth and economic development for all. MSMEs are classified according to the amount of capital investment made in the purchase of small machinery plant used in the business. The Micro, Small and Medium Enterprises Act 2006 is applicable only to those industries, which are working in the manufacturing sector and are investing in equipment for companies in the service sector, that is, working in the service sector. The description of the three categories of MSME industry is as follows:-

Micro or micro industry: Micro industry is the smallest organization. Under this manufacturing business, you can invest at least 1 crore in plant and machinery, whose turnover should be 5 crore.

Medium Industry: Under this, 10% investment can be made in plant and machinery for small manufacturing industry, whose turnover should be at least 50 crores.

Small Scale Industries: For medium manufacturing industries, an investment of 20 crores can be made in plant and machinery, whose turnover should be at least 100 crores.

Benefits of registration of industry in MSME (Profit of MSME Registration Certificate)

Benefits from Banks: All banks and other financial institutions recognize MSMEs, so you can easily get loan approval for your business at a low interest rate. The rate of interest on loans given to MSMEs is 1-1.5 percent less than the interest rate of normal business.

Subsidy by State Government: Most of the states provide electricity, tax and industrial subsidy to those who have registered their business under MSMED Act. They are specifically exempted from sales tax by the state.

Tax benefits: After getting registered in MSME on the basis of business, you can take advantage of excise exemption scheme, some direct taxes are also exempted in the initial year of business, many types of subsidies are given by the government to the traders in setting up the business. is also provided, from which they get benefits.

Approval from the Central and State Government: Businesses registered with MSMEs get government licenses and certifications faster and easier. There are many such government tenders or tenders which are open only for MSMEs to promote the participation of small business in India.

Documents required for MSME registration (MSME Registration Requirements Documents) Documents required for MSME loan

application.
Identity proof will require Passport, Driving License, PAN Card, Voter ID Card.
Residence Proof: Passport, Lease Agreement, Trade License, Telephone and Electricity Bill, Ration Card and Sales Tax Certificate.
Age Proof: Passport, Voter ID Card, Photo PAN Card.
Copy or Xerox of PAN Card
Aadhaar card, passport, driving license etc. must be present with you as one of these proof of identity.
passport size photograph

financial documents that are required

Bank statement of last 12 months
business registration certificate
Proprietor(s) PAN Card Copy
company pan card copy
Balance sheet copy of last 2 years profit and loss
sales tax document
city tax document

Method of registration in MSME (Process of MSME Registration in hindi)

You can register in MSME through both offline and online mode.

Offline Registration (MSME Registration Offline)

First of all, fill your basic information in an application form with the department for which you are starting the industry, then get it registered in the MSME office with the relevant documents.
Before submitting the application and documents, get all the documents certified by an expert, after that submit the application, you can submit the application by going to the District Industries Center in the district where you are starting your business. .
After this, your application will be filed with the MSME registrar by the department, along with your documents, then the experts will verify it. Once the application is approved after verification, you will be issued MSME certificate and you will be informed through courier and email.

Online Registration (MSME Registration Online)

For online registration, visit the portal issued by the Government of India or the link http://udyogaadhaar.gov.in/UA/UAM_Registration.aspx and submit the application after filling the Aadhaar number, name of the owner etc. as per the instructions given .
After that an OTP i.e. unique number will come on your registered number or email, which you will have to enter in the application and submit it by putting the captcha given below in the application.
When you start MSME industry then you have to apply for a final registration, after which you are given the final MSME certificate. You can apply for Permanent Certificate once the production starts.

Want to apply for MSME loan, know step by step this easy process

Recently the government has changed the definition of MSME. If you also want to apply for MSME loan then what should you do. Micro, Small and Medium Enterprises (MSME) loans are generally given to startups and small business entrepreneurs. The repayment tenure of MSME loan varies from lender to lender. Loan interest rates are offered based on the applicant's profile and past business performance, repayment performance. Banks and NBFCs have certain eligibility criteria for MSME loans. By the way, MSME loan is also called unsecured loan. Recently the government has changed the definition of MSME. If you also want to apply for MSME loan then what should you do.

Go to the website udyogaadhaar.gov.in. This is the National Portal for MSME Registration.
Enter the Aadhaar number, name and details of the entrepreneur, then click on generate OTP.
An OTP will be sent to your mobile number which is linked to your Aadhaar card. Enter your OTP and click on "Validate", after that you will see an application form.
Enter all the required details.
After filling all the required details in the application form, click on “Submit”.
After clicking on the "Submit" button, the page will ask whether you have entered all the data correctly. Click "Ok" to confirm.
Now, you will again get an OTP on your mobile number which is linked to your Aadhaar card. Fill the OTP and click on “FINAL SUBMIT” to submit the application form.
Now you will see the registration number, note it down for further work.

MSME loan banks

state Bank of India
HDFC bank
Allahabad Bank
Central Bank of India
ICICI Bank
Bajaj Finserv
Oriental Bank of Commerce
Union Bank of India

Explain that the Union Cabinet in its meeting on June 1 has approved changes in the definition of Micro, Small and Medium Enterprises (MSMEs). The turnover limit for medium enterprises has been raised to Rs 250 crore.

What is PSB Loan in 59 Minutes?

With automation and digitization being its core, the PSB web portal is designed to ease the overall process of fundraising for MSMEs. Entrepreneurs who want to expand their business, upgrade plant or machinery, technology, purchase raw materials, scale up operations, expand service, or more; You can avail these loans.

Business loans and/or collateral-free in-principle approval are provided for amounts ranging from Rs 1 lakh to Rs 5 crore, with interest rates starting from 8.5 per cent. The platform is integrated with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to check the eligibility of borrowers.

How to apply for MSME 59 minutes loan?

Apply for MSME business loan like this, approval will be available in just 59 minutes

The 59 minute PSB loan scheme was launched to make access to capital easier for MSMEs. There is no human intervention for loan amounts ranging from Rs 1 lakh to Rs 5 crore, with interest rates starting from 8.5 per cent.

Access to capital is one of the most common issues faced by micro, small and medium enterprises (MSMEs) in India. Although the sector is known as the 'backbone' of the Indian economy - accounting for 31 per cent of India's GDP and 48 per cent of exports, the most pressing issue is its lack of working capital.

The size and nature in which MSMEs operate makes it a hassle for them to upgrade the business ecosystem. Hence, the situation in this sector in the Indian market is inconsistent even with big names like Hindware, Goldmedal Electricals, and SLR Metaliks relying on MSMEs for raw materials and manufacturing.

The year 2018 saw a wave of booming startup culture to hit this huge segment. Prime Minister Narendra Modi announced several initiatives to increase access to credit for MSMEs and increase employment. He launched a portal where small enterprises can avail loans up to Rs 1 crore in just 59 minutes, where the in-principal limit was raised to Rs 5 crore in July 2019.

As of March 2019, the portal had become the largest online lending platform in the country after approving loans worth over Rs 35,000 crore.

There is no need to visit the bank for this, as the loan application is completely digital. Here is a step-by-step guidance on how to apply for PSB 59-Minute MSME Loan:

1. Visit the web portal - psbloansin59minutes.com

2. Register your account by filling required details like your full name, email address, mobile number and one-time password (OTP).

3. Answer the basic questions asked on the screen after registration.

4. You will be asked to enter the GST number.

5. In the next screen, you need to upload your Income Tax Return in XML format, or login using details like your PAN and date of incorporation.

6. In the next step, you need to upload your bank account details for the last six months in PDF format. Download this statement by contacting your bank or through your net banking account.

7. Enter the Director or Proprietor, Ownership details and Company/Business details.

8. Enter the purpose of your loan, and any existing or previous loans you have taken for your business.

9. Once you enter the above details, you will be asked to select the bank of your choice. Please note that interest rates may vary from bank to bank.

10. Lastly, you need to pay a convenience fee of Rs.1,000 + taxes to complete your application.

Once the process is complete and the payment is done, you will be given an in-principle approval of the loan within 59 minutes. Post in-principal approval, the time taken for loan disbursement depends on the information and documentation provided by the borrower. It usually takes seven to eight working days for loan approval.

PSB loan bankers and lenders include major banks like SIDBI, State Bank of India, Bank of Baroda, Punjab National Bank, ICICI Bank, YES Bank, UCO Bank, Kotak Bank, Federal Bank, Canara Bank, etc.

How to apply for MSME loan?

MSME loan can be applied both online and offline. For online application, you can apply by going to msme.gov.in.

Who can apply for MSME loan?

Any organization of state and central

Industry/Enterprise

This loan can be given to the same company, which is registered under the Companies Act.

The organization which has been working for at least 3 years and has a good track record

The company which has been audited continuously in the last 3 years

What is the limit of MSME loan?

The limit is 1 crore for micro, 10 crore for small and 20 crore for medium.

What are the benefits of MSME loan?

Benefits from Bank, Rebate by State Government, Tax Benefits, Low Interest Benefit

How much loan is available under MSME?

1 crore to 20 crore can be availed under MSME loan.

What is the interest rate on taking MSME loan?

The interest rate on MSME loan ranges from 8.30 – 6.25.

How to register in MSME?

How to register MSME online?

Go to the UAM portal where you will have to fill a form.
If you are registering your business as MSME for the first time, click on the first link on the page or click here to open the form.
Enter Aadhaar number and name and click on 'Validate & Generate OTP'.

How to take loan in MSME?

Documents required for MSME loan

Aadhar card
Any one identity proof issued by the government
Any one proof of residence identity issued by the government
age proof
pan card
Bank statement of last 12 months
business registration certificate
If the business is already running, then copy of the balance sheet of profit and loss of the last 2 years

What is MSME scheme?

A Micro, Small and Medium Enterprise (MSME) loan is a type of business loan offered by banks / lending institutions to individuals, SMEs, MSMEs and start-up enterprises.

How is loan against GST?

Traders will have to go to the GST portal for loans. After filling the terms and conditions of the loan, you will have to give your consent to the GST network. Through which the GST network will share basic information with the Department of Financial Services. After this the loan will be approved.