SSI/MSME registration requires vital documents like Aadhaar Number, Business PAN Number, address proof,owner’s name, applicant’s category, organization name & type, bank account details, business commencement date & address,and NIC Code of enterprise, etc. Vakilsearch offers you the best guidance and is with you at every stage of the registration process.
SSI stands for Small Scale Industries and MSME for Micro, Small and Medium Enterprise. SSI or MSME enterprises are the basis of any economy and are one of the reasons for economic growth, advancing independent improvement for all. Though getting the SSI/ MSME online registration is not compulsory it is always recommended that small and medium enterprises get it done as it provides a wide range of benefits. Through MSME registration business owners can avail the benefits such as rate of interest which would be charged very less, capital investment subsidies, priority sector lending, power tariff subsidies, tax subsidies and much other support from the government sector can be taken.
The small and medium enterprises which fall under SSI/MSME category are the pillar of the economic sector, which helps the economic growth and promote equitable development. Therefore, to promote and support MSMEs, the Indian government through numerous subsidies, incentives and schemes promote SSI/MSMEs through the MSME Act.
All the manufacturing enterprises which have the investment of less than Rs.10 crores in the plant and machinery are allowed to be registered under MSME. When it comes to service enterprises, the investment in machinery and plant should not exceed more than Rs.5 crores. And in the near future, if the enterprise exceeds the prescribed limit, then it will not come under MSME.
Micro-enterprises are the smallest entities, in general. The investment under the Micro manufacturing enterprises should not exceed more than Rs.25 lakhs in machinery and plant, whereas, the microservice enterprises’ investment should be less than Rs.10 lakhs.
In the small manufacturing enterprises, the investment should range in between Rs.25 lakh and Rs.5 crores in machinery and plant, while in the small service enterprises the investment should range in between Rs.10 lakh and Rs.2 crores.
When it comes to the medium manufacturing enterprises, then the investment should range in between Rs.5 crore and Rs.10 crores in machinery and plant, and for small service enterprises, the investment should range in between Rs.2 crore and Rs.5 crores.
The advantages that an Udhyog Aadhaar registration offers are:
The interest rates on the loan offered to MSMEs is 1-1.5% lower compared to the other typical business loan interest.
Mudhra Loan scheme is also introduced by the Indian government which provides loans to SSI/MSMEs without sureties.
The businesses which are registered under the SSI/MSMEs are given the first preference in terms of government license and certification.
SSI/MSME registered businesses can take the benefit of numerous income taxes and capital gains tax subsidies from the government.
Charges are less for an SSI/MSME registered company for the amenities such as electricity and VAT exemptions. And also, other business amenities such as patents are also cheaper for SSI/MSMEs.
There are different government tenders which are particularly open only to SSI/MSMEs to promote the small business contribution in India.