How to Get MSME Registration Certificate in Bangalore India?

Business Company Registration Govt RegistrationOctober 30, 2018November 29, 2021 PATSON LEGAL

MSME Registration: Classification, Documents, Process & Benefits

The term MSME is an abbreviation of micro, small, and medium enterprises. As far as a country like India, whose economy is still in the developmental stage, is concerned these industries can be regarded as the very spine that supports the economy as such.

It is said that around 45 percent of the total industrial employment of India is directly contributed by these companies. They also account for half of all the exports made by India and make up 95 percent of the total industrial units in the country. As per statistics provided by the MSME (Ministry of Micro, Small, and Medium Enterprises) is concerned these companies make around 6000 different kinds of products.

It can be said for sure that with the growth of these companies the country grows as well. These industries are also referred to as SSIs or small scale industries.

How are MSMEs Classified?

The MSMEs in India are classified by the MSME Act, 2006 that came into being on 2^nd October that year. The main aim to establish this act and the ministry was to make sure that MSMEs could be promoted, developed, and fostered so that they could be more competitive.

Recently, Government of India has planned to change the definition of MSME by redefining its classification, and providing some special benefits to the entities to push up their competitiveness, sustainability and growth.

Now, they are broadly present in two sectors – Service and Manufacturing same as earlier classification. But, they are normally categorized in terms of the investment and annual turnover. Means what they’ve invested in plant & machines for manufacturing industry, and earnings annually for service industry such as:

Manufacturing enterprises – Investment in plant & machinery
Service enterprises – Annual turnover

Manufacturing industries are categorized on the basis of their amount invested in plant and machinery:

Micro enterprises: These businesses are one that could be invested less than INR 1 crore;
Small enterprises: These businesses are one that could be invested between INR 1 crore and INR 10 crore; and
Medium enterprises: These businesses are also one that could be invested between INR 10 crore and INR 20 crore.

In the context of service sector, these industries are also categorized on the basis of their annual turnover:

Micro enterprises: These businesses are one that could be invested less than INR 5 crore;
Small enterprises: These businesses are one that could be invested between INR 5 crore and INR 50 crore; and
Medium enterprises: These businesses are one that could be invested between INR 50 crore and INR 100 crore.

Existing MSME Investment chart as per Ministry of Micro, Small & Medium Enterprises

Enterprises	Manufacturing Sector	Service Sector
Enterprises	Investment in Plant & Machinery	Investment in Equipment
Micro Enterprise	Doesn’t exceed Rs. 25 lakh	Doesn’t exceed Rs. 10 lakh
Small Enterprise	More than Rs. 25 lakh but doesn’t exceed Rs. 5 crore	More than Rs. 10 lakh but doesn’t exceed Rs. 2 crore
Medium Enterprise	More than Rs. 5 crore but doesn’t exceed Rs. 10 crore	More than Rs. 2 crore but doesn’t exceed Rs. 5 crore

Revised MSME Classification Scheme

Enterprise Classification	Manufacturing Sectors	Service Sectors
Enterprise Classification	Based on Investment	Based on Turnover
Micro	< Rs. 1 crore	< Rs. 5 crore
Small	< Rs. 10 crore	< Rs. 50 crore
Medium	< Rs. 20 crore	< Rs. 100 crore

Role of MSMEs in India’s Growth

The key role of MSMEs are vast, here we have just mentioned only 6 points:

To generate large scale employment opportunities in India at low cost capital
To provide maximum opportunities for both self-employment and wage-employment
To create flexible environment to ensure competitive innovation
To enhance the regional social structure and its development
MSME sector contributes enormously to the socio-economic development of the country
To build an inclusive, sustainable and equitable livelihoods of society in innumerable ways

What are the Benefits of Registering Your MSME?

There are several advantages of registering your MSME. Here are the top 6 key benefits of MSME registration comes from government side:

First of all, when you do this you can get bank loans at much lower rates of interest. In fact, it can get to as low as 1 or 1.5 per cent. As you would know this is much less than the rate of interest applicable for repayment of normal business loans.
You also get a number of tax rebates as well.
You also get credit facilities for minimum alternate tax (MAT). This can be taken up to a maximum of 15 years instead of the normal limit of 10 years.
As an MSME you also have the sole right to apply to a number of tenders issued by governmental agencies.
You also have quite easier access to credit. This way, you also get a number of concessions and rebates that help you set up your industry or even perform business related work such as registering a patent.
You would also get better preference when it comes to various certificates and licenses issued by the government.

What are the Documents Needed for MSME Registration?

Here are some essential documents we required to get the information about the organization and its activity:

Aadhaar Card of entrepreneur is must required
Proprietorship PAN Card is must required, if it is sole proprietorship firm
Company PAN Card is must required for Pvt Ltd/ LLP/ OPC/ Partnership
Certificate of Incorporation (COI) of company
Address proof of business place
Bank details (A/C Number, IFSC code)
Nature of the business
Investment of capital in business
Number of employees working in your organization

Normally as a business entity in these cases you need to furnish your business address proof, copies of sale bill and purchase bill, partnership deed or MoA (Memorandum of Association) and AoA (Articles of Association), and copy of bills and licenses of machinery that you have bought for your business.

If you own the premises you can provide allotment letter, lease deed, possession letter, or receipt of property tax as proof of your business address.

If you have a municipal license in the name of your business or even in the name of the business owner, director, or partner you need not provide any other possession document as such.

If you have rented the premises you may furnish rent receipt as well as a no objection certificate from your landlord. You would also need to submit utility bills or any other document that supports the ownership of the landlord.

As far as copies of sale bill and purchase bill are concerned you have to provide copies of sale bills for each and every product that you are selling. Much in the same way, you also need to provide a purchase bill for each raw material that you have bought.

As far as partnership deed or MoA and AoA are concerned you would need to submit the partnership deed in case you are a partnership firm. Now, if you are registered officially as a partnership firm you would need to submit the registration certificate as well.

In case you are any other kind of company you would have to provide the MoA and AoA. Along with you need to provide your certificate of incorporation as well. In these cases you would also need to submit a copy of a general meeting resolution as well as the copy of a board resolution that has permitted a director to sign said application.

MSME Registration Process

Aadhaar number is compulsory needed for registering your business enterprise online under the MSME, Act; and to get this Udyog Aadhaar registration number you have to apply it through Udyam Registration official website.

However, before going to do registration of your enterprise, keep handy the entire above said documents asides with you.

Make an application online with the help of your Aadhaar number and Name and generate OTP (remember that your mobile number should be linked to your Aadhaar).
Make confirmation of OTP which has sent to your mobile. It will be direct you to Udyog Aadhaar Form.
Fill the form online, from 1 to 21 fields of MSME Registration Form and click on Final Submit button. Then you will get the registration certificate along with your UAM (Udyog Aadhaar Memorandum) number.

We Help You Get Your MSME Your Certificate Instantly?

For registering your MSME in Bengaluru Karnataka or any other cities in India; you will get numerous good agencies in Bangalore. But, if you need our help, we will assist you in this matter as well as other business concerns also.

If you wish to register your small and medium scale industry you would have to first fill up a form. You can do it online or offline as well. If you wish to register for more than a single industry you can go for separate registration as well. The registration form for an MSME is available at the official website of Udyog Aadhaar. There are certain documents that you need to provide along with your application. You also need to fill up some basic information in this form. It may be enumerated as below:

Personal Aadhaar number
Industry name
Address
Details of bank account

While filling up the form in these cases you can also provide certificates that you have certified by yourself. Keep in mind that this process is absolutely free. You do not need to pay any registration fees for the same. Once you have filled in the details and uploaded the same you would get the registration number and certificate in due course of time.

How to Get FSSAI Registration License in Bangalore Karnataka?

Business ProfessionOctober 17, 2018April 23, 2020 PATSON LEGAL

Know All About FSSAI License in Bangalore India

The FSSAI (Food Safety and Standards Authority of India) is an independent organization that has been created under the aegis of the Ministry of Health & Family Welfare of the government of India. The body has been set up as per the Food Safety and Standards Act, 2006. This particular act can be regarded as a sort of consolidated statute that deals with food regulation and safety in the country.

The main responsibility of FSSAI is to make sure public health is promoted and protected and it does so by supervising and regulating food safety. It was established during August 2011 and its head offices are at New Delhi. In a nutshell, it is responsible for making sure that the billions of people in India are getting food that is healthy and wholesome in the truest sense of the term.

Why is FSSAI registration required?

Since the FSSAI deals with exclusively food safety and standards; you must need its certification in order to convince your customers that you can be trusted with what you are doing. The FSSAI puts the standards based on scientific research and development or food science particularly for food items.

And as an independent body, it facilitates food safety, and regulates critical areas of your business such as manufacture, sale, storage, import, and distribution of food.

This is why having its certification means you are sorted in these areas and there is no reason to doubt your quality as a provider of food-based products and services. It is an industry norm that you would have to adhere to.

What are the different types and categories of FSSAI licenses in India?

FSSAI normally issues 3 kinds of licenses. These are –

FSSAI Registration Central License
FSSAI Registration State License
Basic FSSAI Registration License

The FSSAI Registration for Central License is normally meant for the following entities:

Importers
100 per cent export-oriented units
Large scale manufacturers
Companies that work with the central government organizations
Premises in airports
Premises seaports
Hotels
Restaurants

The central license is normally issued by the national government. Food business operators (FBOs) need to get a central license if they have a head office and operate in more than a state in India. It is primarily for units whose income is in excess of INR 20 crore in a year. At the very least such a license comes with a tenure of a year and at the most it is available for 5 years.

The FSSAI Registration for State License is meant for the following kinds of FBOs:

Small and medium manufacturers
Food operator units serving under Central Government agencies like Railways, Airports, Seaports, Defence and etc.
Storage units
Transporters
Wholesalers
Retailers
Marketers
Distributors
Club/canteen

As the name would state these licenses are provided by the government of the state where you wish to work. In order to obtain such a license, it is absolutely necessary that you work in only one state and not more than that. This license is primarily for units that earn in excess of INR 12 lakh a year. The minimum tenure of this license is a year and at the most it can be stretched to 5 years.

The FSSAI Registration license is meant for the FBOs that happen to be at the absolute bottom of the pyramid. Some of the examples in this case may be mentioned as below:

Small manufacturers
Storage units
Transporters
Retailers
Marketers
Distributors
Dhaba
Boarding houses serving food
Dabba Wallas

This particular license too is issued by the state government department. However, the kind of license that gets allotted to you would depend on what you are considered to be eligible for. It is meant primarily for units that earn less than INR 12 lakh a year. The minimum tenure of this license is a year and at the most it can get up to 5 years.

Look over here the chart which states the turnover limits for FSSAI license:

Types of License	Recommended Annual Turnover
Basic Registration	Below Rs. 12 lakh
State Registration	Above Rs. 12 lakh & Below Rs. 20 crore
Central Registration	Above Rs. 20 crore

Who should have to get a FSSAI license?

As has been stated above if you are in the business of food in India in some way or the other you have to get this license. It does not really matter as to what kind of capacity you are involved in the same you have to get it.

It has also been said already that having this license means that you are an authentic business entity who can be trusted to provide the very best quality of food and related products to people that are paying for the same.

It basically separates you from the illegitimate service providers in this regard.

What are the benefits of getting an FSSAI license?

There are 4 major benefits of getting an FSSAI license –

You are able to generate awareness about your products and services among the consumers. Because eating the right food and staying healthy is the first priority of FSSAI “Eat Right Movement”.
You get the legal benefits to your food business, the consumers trust on your food and believe that your food is safety and healthy.
You get the permission to use the FSSAI logo in menu card and FSSAI number also in packaged food items.
You can also expand your business a lot easily compared to what may have been possible otherwise.

Consumers have nowadays become extremely aware and informed and this also extends to the food that they are eating. As has been said already with an FSSAI license you can let the people know that they can trust what you are offering.

What are the documents needed to get an FSSAI license?

In order to get an FSSAI license you normally need to provide the following documents:

Completed and signed copy of Form B
Partnership deed, certificate of incorporation, articles of association, or any other similar document that may be applicable for you
Photo identity of the FBO
List of food products that you are trying to deal with
Proof that you possess business premises – you can furnish documents such as rental agreement
Management plan to ensure that your food products would be safe for the buyers

In case of the national license you would have to provide the following along with the above mentioned documents:

Plan of processing unit with dimensions and area allocated for each operation
NOC (no objection certificate) or PA from the FSSAI
List of directors, partners, or owners along with their address, photo ID, and contact details
IE code document from the DGFT (Directorate General of Foreign Trade)
List with name of equipment and machineries being used with installed capacity and number
Form IX
Authority letter from the makers nominating a responsible person with his name and address
Certificate from Ministry of Tourism
Analysis report of water to be used
Copy of license and NOC from the makers
Source of raw materials
NOC from local administrative bodies
Recall plan
Document that provides proof of transportation and turnover
Certificate from Ministry of Commerce for 100 per cent EOU (export-oriented units)
Declaration form

If you wish to obtain the state license you need to provide these documents with the exception of the penultimate point. Instead you need to provide copy of the certificate provided as per the Coop Act 1861 or the Multi state Coop Act 2002.

How to apply for an FSSAI license in Bangalore?

In order to start this particular process, you need to submit application “Form-A” for Basic Registration and “Form-B” for both State & Central Registration to the relevant Food and Safety Department. The department may either accept the application or reject it within a period of 7 days. No matter what the decision is you would be informed in writing. In case your application meets with approval you would get a registration certificate from the department. It will contain your registration number as well as your photo.

For this FSSAI license and registration, you can find there are numerous agencies are available to you in Bangalore and also other part in India; you can contact them to obtain your FSSAI license certificate otherwise we can help you in this matter to get your registration done.

We are a leading company registration consultant agency in Bangalore; value your business and are always happy to serve you.

Expiry and Renewal of FSSAI license

Normally the certificate of FSSAI license is valid from 1 year to 5 years. But it depends upon you how many years of term you’ve chosen for your food business and according to that you have to renew your license.

Before expiry of food license, it is essential that the FBOs are need to be renewed their license to avoid the penalties.

As per the guidelines mentioned by the FSSAI; you need to apply for renewal of license a minimum of 30 days prior to the date when the license is about to expire. If you do not do so, your license will lapse and a penalty would be levied on you. Normally, the penalty for each day is INR 100.

The process to be followed for renewal is the same as it happened at the time when you obtained it. The documents needed in these cases are the same as well.

Professional Tax (PT) Registration in Bangalore Karnataka

Business Profession Tax RegistrationOctober 9, 2018October 22, 2021 PATSON LEGAL

Know Everything About Profession Tax in Karnataka

If you have ever noticed your pay slip each month you would have seen a minor deduction along with the likes of HRA (housing rent allowance), the basic salary related breakups, and conveyance, to name a few. This deduction is normally in the region of INR 200 and is referred to as professional tax.

As far as India is concerned, this tax rate happens to be different for each state. In fact, in certain states you may also see that there is no deduction being made under this particular heading.

What is professional tax and who levies it?

Professional tax can be described as a tax that is charged by the state government. It is normally imposed on all people who are earning a living some way or the other in the state. In this case the term professional should not be confused with the definition of professionals that would include people such as doctors.

This is basically a tax that you have to pay if you are an individual who earns and meets the particular limit. This figure normally differs between states.

However, it does not get above INR 2500 on a yearly basis no matter which state you may be in.

It also needs to be stated in this context that this rate is different for different individuals as well.

Who is liable to pay professional tax in Bangalore?

In Karnataka Tax on Profession, Trades, & Calling, both salaried as well as self-employed earners and the business entities have to pay this tax to the state government of Karnataka. As far as salaried people are concerned it is the responsibility of the employers to collect the tax.

The following categories are required to pay professional tax in Karnataka:

Companies
Corporations
Other corporate bodies
Firms
Hindu undivided family (HUF)
Any club or association
Any society

With regards to the self employed people they need to pay it to the people who have been appointed by the state government for such purposes. Professionals such as doctors, chartered accountants, and lawyers have to pay this particular tax over here in Karnataka.

See, these professionals are required to pay the profession tax:

Professional tax rate in Karnataka

In Karnataka professional taxes are levied as per the Karnataka Tax on Professions, Trades, Callings and Employment Act 1976.

As far as salary and wage earners in the state are concerned professional tax does not apply if you earn less than INR 15000 a month.

If you are earning more than INR 15000 a month for the year 2019-20; you would need to pay INR 200 for each month.

However, it also needs to be stated in this particular context that there are other categories of professional tax payers in the state as well and the rates for them are different.

Professional tax slab rate in Karnataka for salaried person

Salary/Wage Range	For Employee	Tax Amount
Less than Rs. 15,000/- Per Month	1 Employee	Nil
Not less than and above Rs. 15,000/- Per Month	1 Employee	Rs. 200

Who are exempted from paying professional tax in Karnataka?

There are certain classes that do not need to pay professional tax in the state. These are –

All the philanthropic and charitable hospitals and nursing homes that are located at places that are lower than the taluk level in each and every district of the state would not need to pay this tax. This however does not include Bangalore and the Bangalore Rural District.
Directors of companies that are registered in the state and have been nominated by financing agencies that are controlled or owned by the state government, or any other statutory body, are exempt from this tax.
Technicians from other countries working in the state under appointment from the national government are exempted from paying this tax as well. However, this exemption would be applicable only for a period of 2 years from the date when the concerned professional joined his work.
The employee who has attained 65 years of age, tax is not deducted from him/her.
The employee who has employed but not worked more than 120 days in respective year, tax shall not be deducted from him.
Physically handicapped and blind persons are exempted from Karnataka professional tax.
The persons running educational institutions and teaching classes up to 12th standard or pre-University are exempted.

Documents required for professional tax registration in Karnataka

Following are the documents needed for registering for professional tax in Karnataka:

Copy of PAN (permanent account number) Card for applicants – in case it is a company it is the directors’ PAN cards that would be needed
AOA (articles of association) and MOA (memorandum of association) if it is a company
Copy of ID (identification) proof of applicants and director in case it is a company –it is preferable to provide the Aadhaar Card in these cases
Declaration, if it is a company
Passport size photo of applicant or director in case it is a company
Sale deed if the property is owned
Mobile number and email ID of applicants and directors if it is a company
Rent agreement if the property has been rented
Residence proof of registered office – it is better to provide copies of mobile bill, telephone bill, electricity bill, or gas bill
PT authorization letter

You need to provide scanned copies of these documents when you make the application.

How to enroll for professional tax (PT) registration?

We want to clear you one thing regarding on enrollment and registration. Because these two things are little bit different; so who shall have to acquire PT enrollment certificate and who needs this registration?

So, you have to understand and aware about the simple difference on them.

Case of Enrollment

As it is stated in Karnataka Act 35 of 1976; In Schedule for Class of persons from Sl. No. 2 to 74 shall have to obtain a Certificate of Enrollment from the Profession Tax Officer of the jurisdiction.

The companies or businesses owners have the responsibilities to enroll for PT (professional tax) for doing business in Karnataka State and shall have to pay certain annual tax before 30th April of every year.

Case of Registration

The employees of Sole Proprietorship/ Partnership/ LLP/ OPC/ Pvt Ltd/ Public companies or any other business organization are getting salary above and not less than Rs. 15,000 monthly have to pay tax on profession.

And it is the responsible of employer to deduct the tax from employees account and pay to State Government and it can be done through filing of monthly PT return. For this, the organization has to obtain PT registration from department.

Therefore, a company having employees has to do both registration and enrollment.

If you wish to be registered for professional taxes in Karnataka; you can get help and support from us. We’ll help you complete your PT application process & obtain enrollment and registration certificate for your business.

PT registration process

You need to visit the official personal tax website. The process is rather simple. By visiting the website you can apply online for registration. Go to https://pt.kar.nic.in/ link for personal tax enrollment and then click on the same. After that you would need to follow the instructions as they appear on the website.

4 simple steps to get PT enrollment & registration certificate:

Prepared documentation for PT registration
Visit to e-PRERANA website
For Enrollment Certificate (EC), click on “Enrollment Application” from left panel of e-Services and fill the details. Then make payment online, then take a print of enrollment application and after that you will get enrollment certificate.
For New Registration Certificate (RC), click on “New RC Request”, fill the entire mandatory field, Sent OTP to Mobile and Verify the number, then you will receive a Acknowledgement No; Through this you can get a RC certificate.

How long does it take to register professional tax?

It takes at least 5 days of working time in Karnataka to get PT enrollment and registration number.

We can apply it in 1 day; however to get the User ID and Password, we’ve to visit the PT office and submit the application with all documents in physical data format, and then the concerned PT officer will verify it. After verification, they issue a User ID & Password for your organization and we receive it. Then we can proceed for PT filing.

Note: The important thing is that the person who is going to collect the login details from PT office has to take an authorization letter from organization head with seal and signature. So that he/she can be treated as the concerned person for receiving details.

Due date for payment of professional tax in Karnataka

As per Karnataka profession tax, every employer or other taxable person has to make the payment of professional tax on or before 20th of every subsequent month.

And 30th May of every year is the last date for filing of annual statements and it is to be filed with Form-5A.

Professional tax registration fees

Consultants or tax professionals charge fees for doing your PT registration and filing returns on time and it varies from one consultancy to other. So before going with them, ask how much they are charging, what services they’ll offer, for how many employees they’ll do filing or anything it is coming to your mind can ask and judge them with their work capability, service and its output.

Penalties for not paying the professional tax

If as an employer you do not register for professional tax in Karnataka you would be charged a fine of INR 1000. In case, you are not a business owner this fine would come down to INR 500.

If as an employer you do not file returns for your employees you would have to pay a fine of INR 250.

If you have registered for the tax and are not paying it then a fine of 1.25 per cent of the outstanding amount would be levied at you on a monthly basis. However, this can go up to a maximum of 50 per cent of the outstanding amount.

How to file PT return online in Karnataka?

Nowadays, the state government of Karnataka has come up with a website named e-Prerana (web link – https://pt.kar.nic.in/(S(pvyjes1a4nocykl51dyfdnae))/Main.aspx). Here professional tax payers can come and enter their returns, and then submit it online as well. This website also enables them to make the payments online.

If they wish they can also generate professional tax certificates online and the best part of this is that they do not also need to go to the professional tax office for the purpose.