There are two stages of registration-provincial and permanent (final). An enterprise is granted provincial registration when it is at a pre-investment stage. After getting provincially registered, an enterprise can apply for permanent registration just before launching its production facilities. However, an enterprise that is already functioning need not have to apply for provincial registration as it is eligible to apply for permanent registration.
Enterprises falling under the three categories (micro, small and medium) are further categorized into two types of industries- manufacturing industry and service industry. The status of an enterprise under the MSMED Act is determined according to the investment slab under which an enterprise falls.
Benefits of MSME Registration in IndiaThe MSME registration process in India has been conceptualized to provide maximum benefits to all types of enterprises. After registration, any enterprise becomes qualified to reap the benefits offered under the MSMED Act. For example, after provincial registration an enterprise can seek financial credit and also other facilities like land, industrial set-up, and water/electricity/telephone connections.
After getting registered under a competent authority, an enterprise is allotted a MSMED registration/entrepreneurs memorandum (EM) number. The concerned enterprise should get the number printed on letter heads, invoices, bills, supply order sheets and other necessary documents. The EM number helps in identification of MSE suppliers and in this case an enterprise becomes an authorised MSE supplier after registration.