It is always a dream for most of us to set up a business of our own. Building a business from scratch is an adventure and gives a sense of achievement once the venture has proved to be successful. However, numerous pitfalls come in the way, if you wish to set up a new business unit in Delhi. In this article let us look at a way to set up a new MSME unit easily.
Knowing the criteria
It is important to know the criteria first. MSME full form stands for Micro, Small, and Medium Enterprise. The earlier loan limits and criteria have since been modified since the government thought that it was limiting the growth potential of the companies. The new process that has since been set up promises greater impetus and push.
MSME Registration is the first step towards applying for benefits from the government. A certificate of registration will be provided to the enterprise owner and that will act as evidence of registration. This document is vital for the application of any scheme under the central government about MSME and industries.
The benefits of MSME Registration
The central government notes and appreciates the value the MSME sector adds to the overall economy. It also understands the importance of the progress that is essential for the growth of the sector which will have a mirror effect on the growth of the country too.
The benefits that MSME Registration provides are manifold:
- MSMEs that are registered get an MSME loan at an affordable business loan interest rate. The EMI terms can also be pliable and friendly under such circumstances.
- MSMEs which are registered can avail themselves of MSME tax exemption as directed by the Government of India.
- Regular MAT extension is for 10 years but for registered MSMEs, it is extendable to up to 15 years.
- Registered MSMEs are always put on the priority list. For any licensing-related registration, a registered MSME will be allowed to put in their nomination at the first chance.
- Owners of registered MSMEs can easily apply for credit for their business.
- The cost of setting up a business is a costly affair. A registered MSME will get rebates and concessions while doing so. There are rebates and concessions on patents too.
There are plenty of schemes under the aegis of the central government which encourages registered MSMEs to take advantage of. These schemes focus on the overall development of the sector and drive greater growth and prosperity.
Business loans are necessary for running a business or even sustaining one. The process to avail one is often filled with numerous challenges and many fail in acquiring one. With MSME certification and registration, getting access to such schemes and funds have become easier. This, the government of India feels will go a long in boosting the MSME sector and will have an overall positive effect on the economy at large.
There is a host of documents that are required for the registration process:
- Address proof of the business
- The Copy of the sales and purchase bill book
- Receipts and bills for the purchase of equipment or machinery
- Copy of the Industrial Licence
- Aadhaar Number
- PAN card
- Bank Account Number
- IFSC Code
- NIC Code
- Employee data if applicable
- Number of Employees
- The Commencement date for Business
- Details of partnership in case of a partnership firm
- GSTIN certificate
- Unregistered Partnership firm: Partnership deed
- Registered Partnership firm: Registration certificate
- Memorandum of Association (MoA)
- Articles of Association (ADA)
- The Certificate of Incorporation
- The Copy of the resolution that was passed in the general meeting of the company
- The Copy of board resolution with authorization from a director to sign and apply for the MSME application.
Lastly, there are numerous benefits to get your business registered as an MSME. It opens up many avenues that will allow the businesses to move forward. Hence, if you’re looking to start one in Delhi, it is recommended to opt for a Zip loan- that provides a business loan in Delhi, at a competitive and affordable rate of interest, and without any collateral. So why wait?
Set up a new unit as an MSME, following all the above-mentioned steps, which are quite easy and can also help your business in the long run.