Shop and Establishment License
A shop is considered to be any premise where retail or wholesale goods are sold or services are provided to people. Under this banner, the following establishments fall under the Shop and Establishments Act
- Godowns
- Storerooms
- Warehouses
- Restaurants or eating places
- Workhouses
- Residential hotels
- Theatre and other places of public entertainment
What are the documents needed for this process?
Every state has its own process, so you should visit the Labor Department to know more. However, some of the documents that you would need to complete the registration process are mentioned below.
- Details of the Manager of the establishment
- Details of employees
- Address proof and PAN card of the proprietor
- Proof of Establishment.
- To provide proof of establishment, the owner can provide any document from your lease deed to electricity or telephone bills. They may also ask for the rent agreement at times.
MSME Registration In India : Procedure, Documents Required
MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s.
- What are Micro, Small and Medium Enterprise?
- MSME Registration Process
- Benefits of MSME Registration
- Information Required for MSME Registration
- MSME schemes launched by the Government are
Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME act. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.
The MSME became operational on October 02, 2006. It was established to promote, facilitate and develop the competitiveness of the micro, small and medium enterprises.
What are Micro, Small and Medium Enterprise?
Previously the existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below:
| Existing MSME Classification | ||||
|---|---|---|---|---|
| Sector | Criteria | Micro | Small | Medium |
| Manufacturing | Investment | < Rs.25 lakh | < Rs.5 crore | < Rs.10 crore |
| Services | Investment | < Rs.10 lakh | < Rs.2 crore | < Rs.5 crore |
These lower limits were killing the urge to grow as they were unable to scale their businesses further. Also, there had been a long-pending demand for the revision of MSME classification so that they can further expand their operations while continuing to avail the MSME benefits.
Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufacturing and the services sectors under the MSME definition was removed. The following is the current revised MSME classification, where the investment and annual turnover are to be considered for deciding an MSME.
| Revised MSME Classification | |||
|---|---|---|---|
| Criteria | Micro | Small | Medium* |
| Investment & Annual Turnover | < Rs.1 crore & < Rs.5 crore | < Rs.10 crore & < Rs.50 crore | < Rs.50 crore & < Rs.250 crore |
MSME Registration Process
MSME registration is to be done in the government portal of udyamregistration.gov.in. The registration of MSMEs can be done under the following two categories in the portal –
- For New Entrepreneurs who are not Registered yet as MSME or those with EM-II and
- For those having registration as UAM and For those already having registration as UAM through Assisted filing
For New Entrepreneurs who are not Registered yet as MSME or those with EM-II
New entrepreneurs and entrepreneurs having EM-II registration need to click the button “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” shown on the home page for registering MSME. New registration of MSME is done by entering the Aadhaar card number and PAN number.
When clicked on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” button on the homepage of the government portal, it opens the page for registration and asks to enter the Aadhaar number and the name of the entrepreneur. After entering these details, “Validate and Generate OTP Button” is to be clicked. Once, this button is clicked and OTP is received and entered, the PAN Verification page opens.
The entrepreneur must enter the “Type of Organisation” and the PAN Number and click on the “Validate PAN” button. The portal gets the PAN details from the government databases and validates the PAN number of the entrepreneur.
After verification of PAN, the Udyam Registration box will appear and the entrepreneurs need to fill the personal details and details of the plant or industry.
Once the details are filled, the “Submit and Get Final OTP” button is clicked, the MSME is registered and a message of successful registration with reference number will appear. After verification of registration, which may take a few days, the Udyam Registration Certificate is issued.
Registration For Entrepreneurs Already Having UAM:
For those already having registration as UAM, they need to click the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” shown on the home page of the government portal. This will open a page where Udyog Aadhaar Number is to be entered and an OTP option should be selected. The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM. After choosing the OTP Options, “Validate and Generate OTP” is to be clicked. After entering OTP, registration details are to be filled and Udyam registration will be complete.
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Benefits of MSME Registration
- Due to the MSME Registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
- It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
- Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
- MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders.
- There is a One Time Settlement Fee for non-paid amounts of MSME.
Information Required for MSME Registration
Aadhaar Card and PAN Card are the only documents required for MSME registration. MSME registration is fully online and no proof of documents is required. PAN and GST linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases. The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems.
GST is not compulsory for enterprises that do not require a GST registration under the GST law. However, the enterprises that need to compulsorily obtain GST registration under the GST regime need to have GST registration for obtaining Udyam Registration.
Those who have UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves in the Udyam Registration Portal by clicking on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II”.
The enterprises having UAM registration need to migrate to Udyam Registration by 31/12/2021. If the entrepreneurs having UAM registration do not migrate to Udyam Registration by 31/12/2021, the UAM registration will be invalid and they will not be able to receive the benefits provided to the MSMEs.
MSME schemes launched by the Government are:
- Prime Minister Employment Generation Programme and Other Credit Support Schemes –
- Prime Minister Employment Generation Programme(PMEGP)
- Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
- Interest Subsidy Eligibility Certificate (ISEC)
- Development of Khadi, Village and Coir Industries –
- Science and Technology Scheme
- Market Promotion & Development Scheme (MPDA)
- Revamped Scheme Of Fund for Regeneration Of Traditional Industries (SFURTI)
- Coir Vikas Yojana (CVY)
- Technology Upgradation and Quality Certification –
- Financial Support to MSMEs in ZED Certification Scheme
- A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
- National Manufacturing Competitiveness Programme (NMCP):
- Credit Linked Capital Subsidy for Technology Upgradation
- Marketing Support/Assistance to MSMEs (Bar Code)
- Lean Manufacturing Competitiveness for MSMEs
- Design Clinic for Design Expertise to MSMEs
- Technology and Quality Upgradation Support to MSMEs
- Entrepreneurial and Managerial Development of SMEs through Incubators
- Enabling Manufacturing Sector to be Competitive through QMS&QTT
- Building Awareness on Intellectual Property Rights (IPR)
- Marketing Promotion Schemes –
- International Cooperation
- Marketing Assistance Scheme
- Procurement and Marketing Support Scheme (P&MS)
- Entrepreneurship and skill Development Programme –
- Entrepreneurship Skill Development Programme (ESDP)
- Assistance to Training Institutions (ATI)
- Micro & Small Enterprises Cluster Development (MSE-CDP)
- Scheme of Surveys, Studies and Policy Research
- National SC-ST-HUB
- Scheme of Information, Education and Communication
Frequently Asked Questions
Is MSME updated to Udyam Registration?
Yes, MSME registration has been replaced with the Udyam Registration. If any micro, small and medium industries want to start any business; they need to do the registration with MSME/Udyam Registration. This registration with MSME/Udyam Registration is completely online. This facility provides the business with a lot of benefits and subsidies.
Is aadhar card compulsory?
Yes. For registration under the Udyam registration, an Aadhaar card is compulsory. In case an applicant is other than the proprietor, the Aadhaar card of the partner and the director will be required.
Can existing and new businesses both apply?
Yes, an existing and new business can apply for MSME/Udyam Registration, provided the existing unit is functioning and meets the threshold limits for registration. UAM Registration has to be re-registered for Udyam registration to avail the benefits of MSME.
What is the validity of the certificate?
There is no expiry of the Udyam Registration Certificate. As long as the entity is ethical and financially healthy there will be no expiry of the certificate.
Can trading companies register under MSME?
No. MSME covers only manufacturing and service industries. Trading companies are not covered by the scheme. MSME is to support startups with subsidies and benefits, trading companies are just like middlemen, a link between manufacturer and customer. Hence not covered under the scheme.
Do I need multiple registrations for manufacturing plants in different cities?
No. The MSME/Udyam Registration Certificate is for a single entity irrespective of multiple branches or plants. However, information about multiple branches or plants must be furnished.
Good News Now Retail and whole sale can also take benefit of MSME