International MSMEs Day 2021: All about small businesses that contribute to the economy

International MSMEs Day 2021: MSME is a micro, small and medium enterprise introduced by the Government of India in agreement with the Micro Small and Medium Enterprises Development (MSME) Act 2006. By law, MSMEs are companies engaged in the production, processing, or preservation of goods that are crucial to economic growth, the sector contributes one-third of the country's GDP and employs 110 million people.

This is because MSMEs in India are mostly operating in rural India plays an important role in the socio-economic development of the country.

According to the 2018-2019 government annual report, more than 6 lakh MSMEs are operating in the country.

Initially, MSMEs were classified based on two factors, annual turnover of investments and companies in plant or machinery. However, the Ministry of Micro, Small, and Medium Enterprises has recently combined these two elements into the same criteria.

According to the revised classification from July 2020, MSMEs are classified as follows micro-enterprise where investment in plant and machinery should not be more than 1 crore and the turnover should not exceed 5 crores. While small scale enterprise comprises of investment in plant and machinery more than 1 crore and less than 10 crores and turnover should not exceed 50 crores and the medium scale organization should have investment not exceeding Rs. 50 crores and turnover should not exceed 250 crores.

The International MSME day falls on June 27 every year and the theme for the year is a key to an inclusive and sustainable recovery. The virtual event is scheduled under the auspices of the UN Department of Economic and Social Affairs with other departments. The UN-designated 27 June as Micro, Small, and Medium-sized Enterprises Day and passed a resolution in the UN General Assembly in April 2017.

However, we are here to brief about on how to register the company:

• Register a company today to get tax benefits and funding. You can get your company registered in India in three simple steps.

• Get your directors registered with the MCA (Ministry of Corporate Affairs) Get guidance to select the right company name. Draft your company's constitution (MoA and AoA) A Certificate of Incorporation, along with PAN and TAN can be received after the approval of the company registration. Officially you can open a current bank account with the Certificate of Incorporation and start your business operations.

Checklist to Register a Company As per the law in the Company Act, 2003 to get any company registered in India:

Two Directors:

A private limited company must have a minimum of two directors and a maximum of 15. Out of all at least one must be a resident of India.

Unique Name

The company name must be unique. The name should not match any surviving companies in India.

Minimum Capital Contribution:

For starting a company there is no minimum capital amount, it should have an authorized capital of a minimum of Rs. 1 lakh.

Registered Office:

The registered office of a company need not be an actual commercial space. A rented house can be the registered office, with a NOC obtained from the landlord.

Documents Needed

Identity & Address Proof:

Scanned copy of PAN Card/Passport (Foreign Nationals & NRIs) Scanned copy of Voter's ID/Passport/Driving License Scanned copy of recent bank statement/telephone bill/electricity or gas bill. Scanned passport-sized photograph specimen signature (blank document with name and signature of directors only) For the foreign nationals, apostilled or notarized copy of the passport has to be submitted without fail. All valid documents should be provided. For residence, proof latest bank statement or the electricity bill must be submitted.

Apostille

An Apostille is a type of attestation in which documents are legalized in a particular format that is acceptable in all countries that belong to The Hague Convention. If a document is apostilled, it need not be attested.

You can find all the details related to the process of getting a company registers on your name from a website like Vakilsearch.com.