SSI / MSME Registration in Chennai

MSME (Micro, Small, Medium, Enterprise) / SSI (Small Scale Industries).

Solubilis offers SSI & MSME registration services across major cities like Chennai, Bangalore, Hyderabad, Cochin, and nationwide. To qualify as a Micro, Small, or Medium enterprise (MSME / SSI), the business entity should have a specified capital investment limit in the service or manufacturing sector.The SSI unit registration involves two parts. To initiate an MSME / SSI enterprise, the entity intending to engage in service or manufacturing goods production for a small business needs to file Form EM Part-I. This filing is crucial and must be submitted before the business commencement.

If the entity engages in manufacturing or service rendering, they must submit the EM Part-II file as the subsequent step. Failure to file EM Part-II within two years after EM Part-I could result in the entity becoming invalid.

Business Field	Business Mode	Invesment Limitation
Manufacturing	Micro Enterprise	25 Lakhs
Manufacturing	Small Enterprise	5 crores
Manufacturing	Medium Enterprise	10 crores
Service	Micro Enterprise	10 Lakhs
Service	Small Enterprise	2 Crore
Service	Medium Enterprise	5 Crore

Changes in EM Part - II of MSME / SSI:

If there's a change in capital investment, notify the District Industries Centre within three months by submitting a note similar to EM Part-II. This update is crucial, irrespective of prior EM Part-II registration.

Similarly, for any alterations in services, products, or work expansion, provide written notice to the District Industries Centre within three months of the changes, regardless of the previously filed Entrepreneurs Memorandum.

Mandatory clearance of Pollution Control Board necessary for the following entities comes under register as MSME / SSI:

Animal and vegetable Plantations and Processing used by tanneries, sago and starch processing, fertilizer production, distilleries, paper and pulp manufacturing, textile processing, synthetic fiber units, chemical industries, dyeing and bleaching, aromatic chemical production, asbestos industries, pesticide and insecticide manufacturing, solvent factories, petroleum refineries, petrochemical industries, refractories, heat treatment facilities, thermal power stations, drug and pharmaceutical companies, cement production, foundries, electroplating services, and paints and varnishes manufacturing.

SUBSIDY FOR SSI / MSME:

Manufacturing sectors registered under MSME can receive location-based capital subsidies depending on their investment in a specific business sector. However, certain entities face restrictions or subsidy cancellations irrespective of their investment or location.

The Sector Activity Which Not Eligible for MSME / SSI:

Entities involved in certain activities considered harmful or impactful include aluminium smelting, audio cassette recording, dye processing (such as azo/reactive dyes), manufacturing of tobacco-based products, and handling substances like cadmium cyanide, calcium carbide, caustic soda, cement, and cyanide. This also encompasses various other operations like clock and watch repair, coffee roasting, distilleries, fertilizer production, firecrackers, hotels, mining, textile manufacturing, and activities involving the use of ozone-depleting substances, iron and steel smelting, knitting, mining, nylon and polyester fiber production, photo copying, photo studios, popcorn production, handling substances like potassium cyanide, chloride, and gold cyanide, poultry farming, power laundries, rayon fiber production, repacking drugs or chemicals without any modification, sawmills, slaughterhouses, spinning, sugar production, textiles, and units utilizing molasses or spirits for making potable alcohol are among the identified activities subject to specific considerations or regulations.

Any person having an intention to establish a micro, small or medium enterprise may file Udyam registration

Post-registration on the Udyam Registration portal, entities receive a permanent Udyam Registration Number.
An "Udyam Registration Certificate" is issued upon completion of the registration process, where Aadhar serves as the foundational document.
For proprietorships, the proprietor's Aadhar is necessary; for partnerships, the managing partner's Aadhar is required.
In cases of private limited, one-person companies, or public limited entities, the Aadhar of the authorized signatory, along with a copy of GST certificate and PAN, is mandatory.
Registering multiple Udyam registrations for a single enterprise is prohibited.
Any falsified information provided during registration, if later found incorrect, may face repercussions under Section 27 of the act.

How to calculate investment in plant and machinery under Udyam registration in Chennai?

The assessment of an enterprise's investment in plant and machinery will directly correlate with the previous years' Income Tax Returns filed.
For newly established enterprises that haven't filed income tax previously, the investment can be self-declared by the promoter until the 31st of March in the financial year following the entity's first Income Tax return filing.
The term "plant and machinery or equipment" aligns with its definition under the Income Tax Rules of the Income Tax Act, 1961, covering all assets excluding land, buildings, furniture, and fittings.
The purchase value of plant and machinery or equipment, whether new or second-hand, as indicated on the invoice, will be considered, excluding the GST based on self-disclosure.

How to calculate Turnover of an Enterprises under Udyam registration?

When calculating the turnover of any enterprise (micro, small, or medium) for MSME registration in Chennai, the turnover won't include the exports of goods or services.
The turnover and export turnover information for an enterprise will be connected to the Income Tax, CGST Act, and GST.
For enterprises without PAN, turnover figures will be accepted based on self-declaration until March 31, 2021. Afterward, having PAN and GSTIN becomes mandatory.

Re-registration Of Existing MSME

MSME/SSI registered under Udyog Aadhar before June 30th, 2020, will remain valid until March 31st, 2021. From July 1st, 2020, these entities can register under the Udyam registration portal. Enterprises registered before June 30th, 2020, will be reclassified under this new notification. As per the new regulation, all MSMEs registered under Udyog Aadhar or EM Part I or Part II must register under Udyam registration by March 31st, 2021.

Documents required are listed below

Type of Organisation
Mobile Number
E-Mail
MSME registration in Chennai needs Copy of GST Certificate (if applicable)
Address of Premises
Bank Account Information (Account Number and IFSC Code)
Date of Commencement of Business
Manufacturer or Service Provider Status
Online MSME registration in Chennai online needs Total Investment in Plant & Machinery or Equipment
Number of Employees
MSME registration in Chennai needs Aadhar Copy of Proprietor / Partner / Director
PAN Card Copy of Proprietor / Firm / Company Applicant's
Social Category of Applicant - (General/OBC/SC/ST)

FAQ'S

Udyam Registration, initiated by the Ministry of Micro, Small, and Medium Enterprises on July 1, 2020, is the latest method for MSME/UDYOG AADHAAR Registration.

The Ministry has granted an extension for entities without a PAN or GSTIN until March 31, 2021. Registration is allowed based on self-declaration until this date, after which PAN and GSTIN become mandatory.

A single PAN card cannot be used for multiple UDYAM registrations.

Enterprises holding a UDYAM Registration Number can modify their details within the UDYAM Registration portal.

Once registered as a Sole Proprietor under UDYAM, the Entrepreneur's Name cannot be altered. However, changes to the Enterprise Name are permitted.

Multiple registrations can be secured using the same Aadhaar card. However, it's essential to note that only one registration is allowed per PAN card.