Can A Private Limited Company Registration Come Under MSME?

Apart from the micro, small and medium-level enterprises, proprietorship firms, LLPs, and public and private limited companies can register under MSME. Proprietorships, Hindu Undivided Family (HUF), Partnership Firms, One Person Companies, private limited companies, Producer Companies, Limited Liability Partnerships, any association of persons, cooperative societies, or the other endeavor can get MSME Udyam Registration in India The private Company should have a minimum of 2 directors. A private Limited company should have a minimum of two shareholders and most two hundred shareholders excluding the members who are within the employment of the corporate or formerly within the employment of the corporate. The liability of the members of a Private Company limited by shares is prescribed to the extent of the unpaid amount of the equity shares held by them. As per the Articles of Association of private Ltd., the shares of the private Ltd. have trading restrictions and hence can't be listed publically. The classification of Micro, Small, and Medium Enterprises is defined under the MSMED Act 2006 modification dated 01/06/2020 i.e. MSME act was passed in the year 2006. The Micro, Small, and Medium Enterprises are based on their Investment in Plant, Machinery, or instrumentality values (excluding land and building) and Annual Turnover. This came into effect on 01st July 2020. Micro Enterprise: wherever the investment in Plant and Machinery or Equipment doesn't exceed One Crore rupees and turnover doesn't exceed Five crore rupees. Small Enterprise: wherever the investment in Plant and Machinery or Equipment doesn't exceed ten Crore rupees and turnover doesn't exceed fifty Crore rupees. Medium Enterprises: wherever the investment in Plant and Machinery or Equipment doesn't exceed fifty Crore rupees and turnover doesn't exceed two hundred and fifty Crore rupees. Yes, businesses that need to avail the advantages proclaimed by the govt. for MSMEs can have to be compelled to register their business online on the 'UdyogAadhaar memo (UAM) portal'. The registration method is simplified and free for each use • Manufacturing Enterprises: These are the organizations concerned with the production of products. Their additional categories supported the investment in the plant and machinery and the annual turnover. • Services Enterprises: These enterprises offer services and additional classifieds supported by the investment in equipment and annual turnover. 1. MSMEs are known to provide reasonable help for improved access to the domestic as well as export markets for businesses 2. MSMEs support product development, design innovation, intervention, and packaging parts of a business 3. MSMEs offer employment opportunities and loans 4. MSMEs offer credit limits or funding support to numerous banks in the country List of companies under MSME: There are some examples of the kind of businesses and services that can get registration under MSME • Active Pharmaceutical Ingredients. • Automobile garages. • Automobile elements parts. • Automotive Electronic element product. • Ayurveda product. • Back office Operation about processed knowledge. • Beauty Parlor. • Bicycle parts. • Bank Loans (Collateral Free) • Subsidy on Patent Registration. • Overdraft Interest Rate Exemption. • Industrial Promotion Subsidy Eligibility. • Protection against Payments (Delayed Payments) • Fewer Electricity Bills. Is MSME registration mandatory for a private limited company? The MSME registration isn't yet made mandatory by the govt. of India however it's helpful to urge one's business to register under this, as a result, it provides loads of advantages in terms of taxation, setting up the business, credit facilities, loans, etc. Registering your industry under MSME has several advantages. excluding the very fact that the companies get covered by the Central and State Government schemes, it additionally helps the industry owners in having higher awareness concerning the new schemes and better accountability. Some of the standard benefits embrace easier access to bank loans and subsidies (tax, power tariff, capital investment, etc), eligibility to use for varied Government’s beneficial schemes, and visibility in multiple laws (banking, exercise, direct taxes, etc.). 1. Aadhaar Card and PAN Card are the sole documents needed for MSME registration. 2. MSME registration is online and no proof of documents is needed. 3. PAN and GST-linked details on investment and turnover of enterprises are going to be taken automatically by the Udyam Registration Portal from the govt databases. 4. The Udyam Registration Portal is integrated with tax and GSTIN systems. The following documents are also required if applicable to the company: • Sale Bill Copy • Purchase Bill Copy • MoA and AoA of the company • Address Proof of Business • Copies of Business Licenses and Purchase Bill of Machinery The complete stepwise procedure is done online registration is given below: Step1: Visit the govt. website i.e. https://udyamregistration.gov.in Step2: Enter the 12-digit Aadhaar number and Name of the authorized representative as given in the Aadhaar card. If the entered name doesn’t match, the person cannot precede any. After that click on the “Validate & Generate OTP” option. The OTP will be generated and sent to your UIDAI-registered mobile number. Or click on the “Reset” button to clear each of the fields and move into the right details. Step 3: After undefeated validation, you need to enter the “Social Category” – (General, SC/ST, OBC) you belong to. 1. Gender – Fill in the gender status 2. Status – The business person needs to choose the physically handicapped status. 3. Name of the Business: The business person needs to enter the name of the company. An entrepreneur can have more than one company. Each of the entities needs to be registered separately under the same Aadhaar Number. 4. Type of organization: From the given list, the applicant needs to choose the type of his organization’s business. 5. PAN Number: The applicant needs to enter PAN if his business falls under a particular category: • Cooperative • Public Ltd. Company • Limited liability Partnership (LLP) This section is non-mandatory for different sorts of business entities. 6. Location of Plant: He/she must enter the location details of all the plants. 7. Business communication Address: The applicant should fill in the whole address of the business entity- District, State, Pin code, mobile number, and Email ID. 8. Business Commencement: The date of Commencement of Business should be entered in the applicable fields. 9. Details of Previous Registration: Details of valid EM-I/EM-II as per the MSMED Act, 2006 should be furnished in the applicable field. 10. Bank Details: The applicant should offer banking details of the business account. • Account number • Bank • IFSC Code 11. Major Activity: Here the applicant must opt for the major activity – Manufacturing or Service, his/her business is engaged from Udyog Aadhaar. Even the entity concerned in each Manufacturing and service, the applicant needs to opt for the foremost business activity type. 12. National Industry Classification (NIC) Code: The list of NIC codes available by the Central Statistical Organization (CSO) under the Ministry of Statistics and Program Implementation. The applicant can opt for multiple codes of the Manufacturing and service sectors. 13. No of Employee: The applicant needs to mention the number of workers involved and who receives payment/wages. 14. Total Investment: The calculation of total investment involves the value of things purchased excluding R&D, Industrial security, pollution management, and other 15. DIC – the full form of DIC is District Industries Centre. Based on the location of the business entity, the applicant needs to fill in the location of DIC. 16. Submitting Application: The applicant should click on the “SUBMIT” button and OTP is going to be sent to the registered Email ID. Enter the OTP and CAPTCHA codes to finish the appliance method. What is the primary authority for issuing certificates for MSME registration? There are different departments detailing with MSME registration method in every state. Hence, the full method is often dispensed online for MSME registration. Once it involves issuing certificates, then the District Industries Centre (DIS) provides certificates for MSME. What is the registration method for existing companies? The registration method for Existing Enterprises is below: All existing enterprises registered below EM–Part-II (Entrepreneurs Memorandum) or UAM (Udyog Aadhar Memorandum Portal) shall register again on the Udyam Registration portal on or after the day of the 1st day of July 2020. All enterprises registered till 30th June 2020, shall be re-classified per notification provided by the government. The existing enterprises registered before 30th June 2020, shall still be valid only for a period up to the Thirty first day of March 2021. Onlinexbrl.com provides all services related to Company registration and MSME Registration. Contact us now to avail the services. What is MSME?
What kind of Companies avail registration under MSME?
There are two classes of enterprises registered under MSME :
MSME Registration Provide:
Revised Classification Applicable w.e.f 1st July 2020
Composite Classes: Investment in Plant & Machinery/equipment with its Annual Turnover
Classification
Micro
Small
Medium
Manufacturing Enterprises and Enterprises rendering Services
Investment in Plant and Machinery or Equipment: Not above Rs.1 crore and Annual Turnover; Not above Rs. 5 crore
Investment in Plant and Machinery or Equipment: Not above Rs.10 crore and Annual Turnover; Not above Rs. 50 crore
Investment in Plant and Machinery or Equipment: Not above Rs.50 crore and Annual Turnover; Not above Rs. 250 crore
Type of corporations comes under MSME:
BENEFITS OF MSME REGISTRATION IN INDIA:
Benefits of MSME registration:
Documents Required for MSME Registration