What is MSME and how to obtain MSME License?

NOIDA, India - June 29, 2020 - PRLog -- Micro, Small and Medium Enterprises, which are known as MSMEs are defined as small establishments and industries that are categorized on the basis of the sector. The most crucial aspect in the MSME establishment is registering MSME. MSME Registration is crucial and must be obtained by individuals that want to start any small business.

What is the registration process to obtain MSME Registration?

The registration process of Micro, Small and Medium Enterprises (MSME) contains certain steps that must be followed by individuals before the incorporation of MSME. The MSME Registration process is simple and involves a few steps, after completing all the steps the individual obtain MSME License after he can start the business.

1. The first step in the registration process is to file an application form with the concerned authority or department of the Government
2. Provide specific details about the industry and submit all the necessary documents within the stipulated time period
3. The applicant must submit his Aadhar card number as an identity proof
4. Crucial details of the applicant such as name, gender, PAN number, email ID and mobile number.
5. The applicant must submit details of the enterprise which includes details such as the name, PAN number of the company, location of the plant where the production will take place, date of the commencement of business, number of employees
6. A bank Account Number and IFS Code is a crucial requirement
7. They must mention the primary business activity of the enterprise
8. The applicant must provide a 2 Digit NIC Code to the concerned authority
9. They must specify the amount that will be invested in Plant and Machinery and Equipment

Conclusion

MSMEs have played a key role in the Indian economy and contributed immensely. If MSMEs continue to contribute in the country, the country's economy will increase which will eventually have a positive impact on the country. The Government must ensure that they are not deprived of any benefits, which includes MSME Registration. They must ensure that the MSMEs receive benefits with regards to proper registration. The Government must also ensure all the requirements of the enterprises are fulfilled and the enterprises run in an effective manner. In spite of setting up different schemes, acts, rules, it is mandatory for the Ministry of MSME to ensure that the schemes and rules are followed in a consistent manner.

This Article has been contributed by Mahiya Ahmed who is a content writer. She have recently joined SwaritAdvisors (https://swaritadvisors.com/). SwaritAdvisors is a legal & financial services provider with experts help such us- Register an NBFC(https://swaritadvisors.com/nbfc-registration), Online Nidhi Company Registration, FSSAI Registration, etc.