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MSME registration for eCommerce Businesses?

Starting with an entrepreneurial journey is exciting. We know you’d be all set to unleash your skills set to make it a success, and we believe in you. As you step on the journey, you need to open the gate of getting your business complied. And the key to opening is to comply with your business with MSME registration.

Today when we work with so many sellers at iThink Logistics, we’ve noticed that so many potential individuals are beginning the entrepreneurial journey, which is why it is vital to be well versed about MSME registrations. To keep your business up and running, we will uncover all the relevant information around MSME registration. So further ado, let’s begin on understanding how to comply with your dream project/ business.

What is MSME?

MSME stands for Micro, Small and Medium Enterprises. MSME is classified under different categories based on the investment cap and machinery or equipment made in use. These enterprises are segregated based on the investment cap, and it follows:

Many new modifications in MSME were taken into action after introducing Atma Nirbhar Bharat Abhiyan. 

Looking at the current scenario, the government has two classifications of MSME, and they are:

Since the pandemic, MSME businesses have contributed majorly to the country’s economic growth. They have created job opportunities, which has been a great help to people in the rural areas.

And so, MSME comes along with various benefits, but it’s essential to complete the formalities for registration.

Let’s dig deeper to understand the process of MSME registration. 

What is an MSME Certificate?

After successfully doing the MSME registration, you as the entrepreneur will receive the MSME certificate. This gives evidence of registering for MSME. It acts as a valid document to avail any schemes, concessions or authorizations.

In the scenario, if one applicant wants to register for multiple MSMEs, you must go through separate registration for each enterprise. And for each of your MSME registrations, a certificate is issued.

After making the registration and receiving the certificate, let us understand how businesses are categorised in the MSME scheme.

What businesses are categorized under the MSME scheme?

Based on different industries, the government of India has classified businesses as micro, small or medium. But in the current case, the classification looks like this:

The updated notification as published in the Gazette of India, June 1, 2020 (with effect from July 1, 2020) omits the existing definition as published in the same on the 29th September 2006 and follows:

Micro- Enterprise:

Industry: Plant & Machinery or Equipment

Any businesses under the category mentioned above will be considered micro-enterprises. It should not exceed the limit of 1 crore rupees in investment, and the annual turnover shouldn’t be beyond 5 crores.

Small Enterprise:

Industry: Plant & Machinery or Equipment

In this category, businesses under the category mentioned will be classified as small enterprises provided the businesses should not be beyond 10 crore rupees in investment, and the annual turnover should be within 50 crore rupees.

Medium Enterprise:

Industry: Plant & Machinery or Equipment

A business under this specified category is a medium enterprise if the investment amount is not 50 crore rupees and annual turnover remains below 250 crores. 

To make it even more, simpler, under the plant & machinery or equipment category: 

What are the benefits of MSME registration? 

Ministry of Micro, Small and Medium Enterprises looks at this as a good contribution, supporting rural upliftment. And for these reasons, MSMEs are essential. To keep up the spirit of entrepreneurs, the ministry of MSME has various stable benefits and schemes, and they go like:

By now, you must have understood that the Government considers MSME as the vital factor contributing to India’s economic growth. The Government has various benefits and subsidies to offer, and to avail them, the registration for MSME is a must.

MSME Registration Process:

The registration process for MSME is relatively easy. An entrepreneur needs to follow the 9 simple steps, and they are:

Conclusion

MSME registration is essential for business. Apply quickly and register your business with Government to get maximum benefits for business. 

Let’s get started!

FAQs

You can have various questions pertaining to the MSME process; let’s answer a few of them here:

a) Is MSME Registration compulsory?

Nope, there is no compulsion. But the businesses that want to avail the benefits subsides, concessions, and other perks can register for MSME at their will. As the Government massively supports MSMEs, it is advised to register under the category your business best fits.

b) Can existing businesses apply for MSME Registration?

Yes, of course! Existing businesses can apply for the MSME registration, provided their annual turnover will be taken into consideration.

c) Who is eligible for MSME?

Businesses and enterprises are eligible to register for MSME. However, a sole proprietor can also register for MSME at their will. But this will be treated like any other company that has registered for MSME in terms of process and benefits.

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