WHAT IS IMPORTANCE OF MSME?

From the point of view of the nation’s economy, these are a goldmine in contributing to its substantial growth. The enterprises falling within the MSME bracket are considered to the backbone of the economy—accelerating its development. More importantly, MSMEs play a vital role in balancing out and providing equitable development for everyone—the necessity of which is paramount. Since these enterprises are so important for our country, our government does whatever it can to support and encourage the development of a lot more such enterprises. For successfully promoting the idea of MSME, the government has launched the MSMED act—on the basis of which many incentives are provided in the form of subsidies, development schemes, etc solely for the benefit of the MSMEs. These benefits, being provided by the Central or State Government along with the banking sector, are easily available upon registration.

DOCUMENT REQUIRED FOR MSME REGISTRATION

Proof of ownership of Premises

If the premise is self-owned– Property Allotment letter, possession letter, lease Agreement or Property tax receipt. If the entity has a municipal license in the name of the entity or its director, then no other proof of legal possession is required. In case the premises are rented– The business entity should ideally submit a proof of legal possession like rent receipt and/or NOC from landlord, with his ownership proof supported by utility bill.

Sale Bill copy and Purchase Bill copy

Business is required to submit a photocopy of sale receipt related to each end product that it will supply. Also, for each raw material purchase, a photocopy of purchase receipt has to be submitted.

Partnership Deed/MoA and AoA

If the business entity is a partnership firm, a copy of its partnership deed needs to be submitted. If it’s a registered partnership firm, it will have to submit its registration certificate too. If the business entity is a company, a copy of its MoA and AoA along with its CoI has to be submitted. Along with it, the company will also need to submit a copy of board resolution authorizing a director to sign the MSME application, and a copy of its resolution passed in the general meeting.

Copy of Licenses and Bills of Machinery Purchased

In case the end products require a license under Industrial Development and Regulation Act,1951, a copy of the industrial license from Govt. of India. Also, all purchase receipts and bills of plant and machinery installed are to be submitted on demand.