The eCommerce market is growing fast in India. Especially after the indirect 19 epidemics and upcoming locks in various parts of the country, the internet has become more of a necessity than a choice. Many businesses have opened up in this field and more and more brands are moving online.
This is a great time to start your e-commerce business as online consumers are increasing. According to a report by IPEF, the e-commerce market is expected to reach $ 2021 billion by the year 84 on the back of healthy growth in the Indian organized retail sector.
However, when you start a business, you need to obtain multiple licenses and complete registrations, which are mandatory or offer you benefits and protection. We talked about GST and IEC registration in some of our previous blogs. Here, we will talk about MSME registration, its importance and how you can do it quickly. There are also lots of advantages of the private limited company. Read further to get to know more!
What is MSME in India?
MSME refers to a medium, small and micro enterprises (MSMEs) involved in the production, production, processing or distribution of goods.
Their separation is based on their investment cap –
- Micro-Enterprise – Rs. 25 lakhs;
- Small Business – Rs. 25 lakh but Rs. 5 crore
- Medium Business – Over Rs.5 crore but not exceeding Rs.10 crore.
Many businesses have protested against this breakdown because as they grow from micro to small and eventually medium to large, companies lose profits.
After the introduction of Atmanirbar Bharat Abhiyan, several changes were made in the MSME strategy, following which investment and annual returns were considered before classifying a business in the MSME segment.
Currently, the government classification of MSMEs is –
- Manufacturing companies
- Enterprises rendering services
The government considers micro, small and medium enterprises to be a major contributor to the country’s economic growth. They help to create jobs with low investment and facilitate the industrialization of rural areas.
Therefore, it offers many benefits and subsidies to these businesses. But before that, you need to complete the registration process.
What is MSME Registration?
MSME Registration refers to the process of registering your business with the Ministry of Micro, Small and Medium Enterprises. Keep this post. You will receive a certificate that serves as the official source for registration.
List of required documents
- Source number
- Ban number
- GSTIN No.
- Bank account number
- IFSC Code
- NIC code
- Employee data if applicable
- Number of employees
- Start date for business
- Copy of Sales and Purchase Bill Book
- Receipts and bills for the purchase of equipment or machinery
- Copy of industrial license
Advantages of MSME Registration
Here are some benefits you can get after registering for MSME certification.
- Low-interest rates on banks and flexible EMIs
- The minimum replacement tax can be extended up to 15 years
- Setting up discounts and rebates and costs on patents
- Priority to government tenders
- Get access to your MSME business
- Priority and priority to applications for licenses and certificates issued by the Government of India
Thus, you might have not got an idea of how to register the MSME eCommerce company. Start the process now and make it hassle free.