What is MSME Certificate?

MSME Registration stands for Micro Small and Medium Enterprises. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, to promote the small businesses. MSMEs in the manufacturing and service enterprises can obtain the registration under the Act.

Every Micro, Small or Medium must enrol itself for issuance of Udyog Aadhar, this enrollment is valid for lifetime and can be obtained by those units or enterprises which have already started operations and not for the enterprise which is planned to be started.

Tyes of Different MSME Registered Online?

The act divided the MSMEs into two categories:

1.Engagement of Enterprises in manufacture or production or processing

2.Engagement of Enterprises in providing or rendering services

Enterprises are further sub-divided into Micro, Small and Medium enterprises based on their investment in plant and machinery.

Benefits of MSME Registration?

MSME Registration helps Enterprises to avail the benefits of:

*Easy access to credit

*Access to mudra loan scheme

*Bank loan at subsidised rate

*Excise exemption scheme

*Tender preferences

*Rebate and considerations under the Indian tax laws

*Capital investment subsidies

*Power tariff subsidies

Validity of the MSME registration?

The MSME registration certificate is valid for five years. Once you set up the business unit, you can apply for the permanent license. The permanent registration certificate is valid for a lifetime period. But, if you are not to set up the unit within five years or the unit exceed the investment limit then you may re-apply for the MSME certificate.

1.Provisional MSME registration certificate is first issued if the operations of the MSME have not been set up. This is valid for a period of 5 years.

2.Once the MSME commences its operations, a permanent registration certificate is issued, as the name suggests, the registration is permanent.

3.In case you are unable to commence operations with the period of the provisional registration, you may re-apply for the MSME registration online.