REGISTRATION UNDER MSMED ACT, 2006

The registration under Micro, Small and Medium Enterprises Development (MSMED)
Act, 2006 :

Following are some of the Vital Points relating to MSMED Act, 2006:

1. Slabs prescribed under the MSMED Act to determine the status of the Enterprise:
Type of
No. Enterprise

Manufacturing Industry
(Investment in Plant and Machinery)

Service Industry
(Investment in Equipments)

Micro

Does not exceed Rs. 25 Lakh

Does not exceed Rs. 10 Lakh

Small

Exceeds Rs. 25 Lakh but does not

exceed Rs. 5 Crore

Exceeds Rs. 10 Lakh but does

not exceed Rs. 2 Crore

Medium

Exceeds Rs. 5 Crore but does not

exceed Rs. 10 Crore

Exceeds Rs. 2 Crore but does

not exceed Rs. 5 Crore

2. Classes of Enterprises that may qualify for Registration:

All classes of enterprises, whether Proprietorship, Hindu undivided family, Association of
persons, Co-operative society, Partnership firm, Company or Undertaking, by whatever name
called can apply for the registration and get qualified for the benefits provided under the Act.

3. A Medium enterprise engaged in the manufacture or production of goods has to

compulsorily register under the MSMED Act. For other Enterprises the registration is
discretionary or optional.

4. Benefits available under the MSMED Act, 2006:

No fees are applicable for making application for registration under this ACT.
a) Benefits to Micro and Small Enterprises:
1. Easy finance availability from Banks, without collateral requirement
2. Protection against delay in payment from Buyers and right of interest on delayed payment
3. Preference in procuring Government tenders,
4. Stamp duty and Octroi benefits,
5. Concession in electricity bills
6. Reservation policies to manufacturing / production sector enterprises
7. Time-bound resolution of disputes with Buyers through conciliation & arbitration
8. Reimbursement of ISO Certification Expenses

KAUSHIK DAS & ASSOCIATES

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b) Medium Enterprises:
1. Easy finance availability from Banks, without collateral requirement
2. Preference in procuring Government tenders
3. Reservation policies to manufacturing / production sector enterprises
4. Time-bound resolution of disputes with Buyers through conciliation & arbitration
o

Required documents:

Application in Part I AND Part II to be made to the DIC (District
Industry Center) of particular district where the place of business is
situated in case of new company / organization

Application in Part II to be made to the DIC (District Industry Center)
of particular district where the place of business is situated in case of
Established company/organization.

Residential address of all the directors in case of company / all partners
in case of partnership firm/ of Karta in case of Hindu undivided
family/proprietor in case of proprietary concern.

Address proof of the particular applying entity.

PAN of entity

Constitution document i. e. for company memorandum and articles of
association, for partnership firm the partnership deed etc.

Shop act licenses of entity.

Authority resolution

CA certificate for value of investment, capital and plant and
machinery.

KAUSHIK DAS & ASSOCIATES

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