MSME REGISTRATION

INTRODUCTION:-

MSME also known as Ministry of Micro Small and Medium Enterprises as it deals with the formulations and management of guidelines, rules and laws which are pertaining to the small-scale industries in India. It came into effect on the 2nd day of October 2006. It is governed under Micro, Small and Medium Enterprise Development (MSMED) Act 2006. It aims to facilitate, incentivize and boost the competitiveness of MSME which are working in pan India. India's economic backbone is MSME as it contributes to the GDP of the country as the MSME sector encompasses a massive number of small industries’ is an administration upheld drive that tries to support the development of limited scope businesses working in the coordinated and disorderly areas.

 

ADVANTAGES OF MSME REGISTRATION:-

  1. MSME registration holders have an access to get cheaper loans as they get a 1.5% low interest rate.
  2. It ensures credit which is related to MAT which is forward up to 5 years instead of 10 years.
  3. It ensures that for the MSME holder that the availability of rebate and concession is there.
  4. MSME holders can avail for the concession on patent.
  5. Users of the MSME registration can access the Government e-Marketplace and e-tenders through the Udyam Registration Portal.
  6. Provide fees relaxation for ISO certification
  7. Provide concession on electricity bill
  8. Guarantee exposure to exchange fairs led at the homegrown and worldwide level

 

IMPORTANCE TO REGISTER BUSINESS UNDER MSME:-

The pioneering society in India has seen quick development throughout recent years. The development, particularly in the semi-metropolitan and rustic regions has developed, making ready for the SME and MSME areas. To upgrade this development of the MSME area the public authority has started many plans, offers, and appropriations to build the cooperation of people in this area. Numerous tax benefits, local programs and subsidies, and other advantages are available to businesses that are registered under the MSME scheme. Additionally, banks assist these companies in the development and expansion of their businesses by providing them with loans at a rate that is advantageous to them.

Practically 70% of the Indian Gross domestic product comes from the MSME area. For the benefit of MSME company's expansion and the government, it is essential for these businesses to be registered in the MSME sector.

 

FOLLOWING INVESTMENT AND ANNUAL TURNOVER BRACKETS MUST BE TAKEN INTO CONSIDERATION WHILE DETERMINING MSME:-

  1. MICRO ENTERPRISES- The maximum amount that can be invested must be Rs. 1 Crore, and maximum annual turnover should be Rs. 5 Crores.
  2. SMALL ENTERPRISES-  The maximum investment and yearly turnover bracket of Rs 10 Cr and Rs 50 Cr respectively.
  3.  MEDIUM ENTERPRISES- The maximum investment and yearly turnover bracket of Rs 50 Cr and Rs 250 Cr respectively.

 

BENEFITS OF MSME REGISTRATION FOR SMALL SCALE BUSINESSES:-

  1. Bank loans are given with collateral free. This mirrors the drive for micro and small scale organizations. Both old and new endeavors can profit from the advantage.
  2. The subsidy is given on patent enrollment of about 50%.
  3. As addition of 1% ought to be incorporated as utilized in the plan, the overdraft interest rate is excluded and fluctuates from one bank to another.
  4. Protection against postponed installments for micro, and small ventures by furnishing help by giving them the ideal for collection of interest on the interest on the payments which are sometimes delayed from the buyer.
  5. Under the MSME act tax exemption is provided.
  6. Enterprises enlisted under the MSME Act could profit from a reduction in electricity bills.

 

MSME REGISTRATION PROCESS:-

1. Registration Procedure For Those Entrepreneur Who Are Not Enlisted As MSME:-

STEP 1- Firstly you need to visit the Udyam portal and select for new entrepreneur who has registered yet as a MSME or those with EM-II

STEP 2- Then you need to enter the Aadhar card , name or entrepreneur and then click on generate OTP.

STEP 3- You need to provide the OTP then you get redirected to the PAN verification page.

STEP 4- Then mention further details like type of organization, PAN detail and then click on validate PAN tab. Then PAN details will be retrieved by the Udyam Portal details from the government database and authenticate the entrepreneurs PAN.

STEP 5- Then entrepreneurs will fill the personal detail in Udyam registration form

STEP 6- Then click on submit and get the final OTP.

STEP 7- Enter the OTP and complete the Udyam registration process. Once the registration is successful reference numbers will be provided to the entrepreneurs.

 

2. Registration Procedure For Those Entrepreneur Who Have UAM:-

STEP 1- You need to go to the Udyam portal and then select  ‘For those having registration as UAM’ or ‘For those already having registration as UAM through Assisted filing’.

STEP 2- Then you need to provide UAM and select generate and validate OTP

STEP 3- You need to enter the OTP and fill out the MSME registration form with details.

 

3. Procedure to get MSME Certificate Online:-

STEP 1- You need to go to Udyam Portal and then click on the print/verify tab. Then select the print Udyam certificate option.

STEP 2- Then you need to provide your contact number and Udyam registration.

STEP 3- Then proceed to click on validate and generate OTP.

STEP 4- To view the MSME registration certificate, enter the OTP and select the "Validate OTP and Print" tab. Entrepreneurs can download and print the MSME enlistment declaration.

 

4. Details Required In MSME Application Form:-

  • Aadhar Card
  • Name and gender of business owner
  • Organization type
  • Caste category
  • Enterprise name
  • PAN card details
  • Enterprise address
  • Bank account number with IFSC code
  • Number of employee
  • Primary activity of NIC code
  • Annual turnover
  • Capital invested in plant and machinery

 

5. Document Required For MSME Registration:-

The reports entrepreneurs should submit to enlist their business are the Aadhaar card and PAN Card. The Udyam Registration Portal has access to all information pertaining to investments and annual turnover because the PAN and GST are linked.

 However, entrepreneurs can keep business PAN cards, bank information, bank statements, no-objection certificates, business establishment certificates, lease agreements, and other documents to protect themselves.

Article by Prateek Thakur

A legal Intern at Corpzo 

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