• The Micro- Small and Medium Enterprises (MSMEs) are small sized entities, defined in terms of their size of investment. Government promotes MSME through various schemes, subsidies and incentives. MSMEs not only play a crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural and backward areas.
  • MSME (Micro Small & Medium Enterprises) plays a very important role in the economy. Such enterprises provide support to the industries through raw material supply and supply of goods & finished product. In India, MSMEs are classified in terms of investment made in plant & machinery and equipment.
  • Although getting MSME online registration is an easy task and it provides a variety of benefits:-
    • Rate of interest charged would be very less,
    • Tax subsidies
    • Capital investment subsidies
    • power tariff subsidies
    • credit guarantee scheme
    • benefits from Governments (State & Central)
    • lower cost procurement
    • cheaper bank loans
    • Opportunities for growth
Procedure to register MSME:-
    • Enter 12 digit Aadhaar card of the applicant
    • Complete OTP verification process
  • Preparation of application by entering below information:-
    • fill applicant’s name
    • Social category
    • name of enterprise
    • type of organization
    • location of plant
    • contact number
    • email id
    • date of commencement
    • major activity
    • NIC code
    • persons employed
    • DIC office details, where business is established
  • Application process
  • documents to be submitted to DIC office regarding its registration
  • Issuance of registration certificate
Documents Required:-
  • Name of enterprise
  • Proof of Applicant’s:-
    • Aadhaar Card &
    • Pan Card
  • Other relevant information required :-
    • Applicant’s email id &
    • Contact number
  • Bank Account details includes:-
    • Bank name
    • Bank Account number
    • IFSC Code
  • Relevant Documents required:-
    • In case of partnership, Partnership deed
    • In case of Company, Copy of MOA & AOA
    • Copy of resolution passed authorizing a director to sign the MSME application is also to be submitted.
  • Business address Proof (any one utility bill)
    • Electricity Bill or
    • Gas bill
  • If premise is on rent,
    • Rent/Lease agreement
    • NoC from landlord
  • List of disclosures:
    • Cash receipt,
    • Proof of the value of machine or equipment
  • Declaration by proprietor/Director/manager with seal stating all above information is true and nothing in it is false.
  • Any other relevant information required, if any
  1. What about certificate generation after registration and its validation?
The Provisional Registration Certificate (PRC) will be valid for a fixed period of 5 years from the date of issue of PRC. In other words, the PRC will automatically lapse at the end of 5 years from the date of issue of the certificate or the date of commencement of production by the unit, whichever is earlier.
  1. What is the eligibility criterion for MSME / SSI Registration?
The following persons can apply for registration:-
    • Sole proprietor
    • Hindu Undivided Family
    • Partnership firm
    • One person company
    • Limited liability partnership
    • Private limited company
    • Co-operative societies
    • Society
    • Trust
  1. When MSME Registration Certificate will be issued?
After filing online MSME application form, MSME Registration Certificate will be issued immediately at email.
  1. Who has the authority for Registration of MSME?
For MSME online Registration there is a separate DIC (District Industries Centre) department in each state. They have the power to issue MSME Registration Certificate with the MSME Number.
  1. Which form is required to file with ROC?
Specified Companies are required to file returns with ROC in e-form MSME-1
  1. What is Provisional Registration Certificate (PRC)?
This is given for the pre-operative period and enables the units to enjoy the benefits after its registration like term loans etc. PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can apply for fresh application at the end of five years period.
  1. Is any disclosure required to be made in the audited financial statements, of the buyer?
According Section 22 of MSME Act, 2006, a buyer in its audited annual statements is required to be furnishing the following information:-
  • the principal amount and the interest due thereon (to be shown separately) remaining unpaid to any supplier as at the end of each accounting year;
  • the amount of interest paid by the buyer in terms of section 16, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year;
  • the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act;
  • the amount of interest accrued and remaining unpaid at the end of each accounting year
  • the amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23.
  1. What are the compliances a company needs to make with ROC?
Under section 9 of MSME, Act 2006 the companies who get supplies of Goods & services form MSME and whose payment is due for exceeding 45 days from the date of acceptance of Goods & Services (hereafter referred to as “Specified Companies”) and all those companies need to file half yearly return to MCA with following information:-
    • the amount of payment due and
    • the reasons of delay
  1. Which form to be filed by the specified companies?
  1. Every Specified company needs to file MSME Form I with all details of outstanding dues to MSME suppliers within 30 days from the date of publication of this notification dated 22nd January, 2019
  2. Every Specified Company shall file a return as per MSME Form 1.
  1. What is the time period of filling the form (MSME Form 1) to ROC?
For Time Period Date of filling
April to September31st October
October to March30th April
  1. What are the liabilities under companies Act, 2013, if specified companies fail to file form MSME -1?
Under section 405 of Companies Act, 2013 if company fails to file the return, the Company shall be punishable:-
  1. with fine which may extend to twenty-five thousand rupees and
  2. every officer of the company who is in default, shall be punishable with imprisonment for a term which may extend to six months or
  3. with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees, or with both.
  1. Which MSME do require renewing their certificates?
Renewal of registration certificate will only be required in case of those units whose investment in plant & machinery is more than Rs. 60 lacs and upto Rs. 75 lacs via notification No. 5 (1)/93-SSI Bd. The certificate of registration issued to such units will be valid for a period of 5 years. In other words, renewal of the registration certificate of such industrial undertakings which have investment limits more than Rs. 60 lacs and upto Rs. 75 lacs will be valid upto 5 years. After 5 years if the unit continues to be an ancillary industrial undertaking then the certificate can be re-validated for the next 5 years and so on.