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Micro, Small and Medium Enterprises or the MSME is an important linchpin contributing to the prosperity of the Indian Economy.

With the help of various subsidies, schemes and incentives the Government promoted the MSMEs through the MSMED Act introduced in 2006.

Let us look into how the manufacturing and service enterprises are defined in terms of their investment:

MICRO ENTERPRISE Upto 25 lakh Upto 10 Lakh
MACRO ENTERPRISE Above 25 lakh- 5 Crore Above 10 Lakh- 2 Crore
SMALL ENTERPRISE Above 5 Crore-10 Crore Above 2 Crore- 5 Crore


It is very important for all the micro, small and medium sized enterprises to get the MSME Registration done for them to avail various benefits and also MSME has played a crucial role in creating employment opportunities with lower capital costs and also industrialization of rural and backward areas which n turn balances the distribution of national income.


  • Business Address Proof
  • Self-owned Premises – Allotment letter, possession letter, lease deed or property tax receipt.

    Rented Premises – Rent receipt and a no objection certificate from the landlord is required.

  • Sale Bill and Purchase Bill
  • Business is required to submit copy of sale bill related to each end product that it will supply.

  • Partnership Deed/ MoA and AoA
  • If the business is a partnership firm, it has to submit its partnership deed. In case of a company, copy of Memorandum of Association and Articles of Association, and certificate of incorporation has to be submitted.

  • Licenses and Bills of Machinery Purchased
  • In few cases, the applicant has to submit a copy of industrial license which is to be obtained by giving an application to Govt. of India and if required all bills and receipts related to purchase and installation of plant and machinery.

    Aavana Corporate Solutions offering various business registrations can also help clients in procuring MSME Registration. We do the complete registration process from collecting documents, filling in the application, and getting the final MSME Registration certificate at the best possible prices.

    MSME Registration – Deliverables

    The Issue of MSME Registration Certificate

    Is MSME registration voluntary or mandatory

    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.

    Criteria for MSME Registration

    One can apply for the MSME Registration if you fulfill one or multiple of the below-mentioned criteria:

    • If you are a sole proprietor (exclusive owner of a business)
    • If you are a part of Hindu Undivided Family (HUF)
    • If you work as or have a partnership firm with another party in an association
    • If you have a One Person Company/ Limited Liability Partnership/ Private Limited Company
    • If you have a manufacturing company that produces materials

    Advantages of MSME registration

    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.


    Any entrepreneur having valid Aadhaar Number can apply for MSME Registration Online.
    At present Aadhaar Number is mandatory for issuance of MSME Certificate.
    Public sector banks have been advised to open at least one specialized branch in each district. The banks have been permitted to categorize their MSME general banking branches having 60% or more of their advances to MSME sector, as specialized MSME branches for providing better service to this sector as a whole. As per the policy package announced by the Government of India for stepping up credit to MSME sector, the public sector banks will ensure specialized MSME branches in identified clusters/centres with preponderance of small enterprises to enable the entrepreneurs to have easy access to the bank credit and to equip bank personnel to develop requisite expertise. Though their core competence will be utilized for extending finance and other services to MSME sector, they will have operational flexibility to extend finance/render other services to other sectors/borrowers.
    With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSME units, payments have to be made by the buyers as under:
    • The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day.
    • The agreement between seller and buyer shall not exceed more than 45 days
    • If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.
    • For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at above.
    • In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government.
    With a view to facilitating credit flow to the MSME sector and enhancing the comfort-level of the lending institutions, the credit rating of MSME units done by reputed credit rating agencies and it should be encouraged. Banks are advised to consider these ratings as per availability and wherever appropriate structure their rates of interest depending on the ratings assigned to the borrowing SME units.
    The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness. The primary objective of this activity is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National / International standardization Bodies. Under this Activity, MSME manufacturing units will be provided subsidy to the extent of 75% of the actual expenditure, towards licensing of product to National/International Standards. The maximum GOI assistance allowed per MSME is Rs.1.5 lakh for obtaining product licensing /Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing /Marking to International standards. One MSME unit can apply only once under the scheme period.
    Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines.

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