MSME stands for Micro, Small, and Medium Enterprises, and it is the Indian economy’s underpinning framework. It gives our economy essential resilience in the face of global adversity.
MSMEs in India currently provides 6.11 percent of manufacturing GDP and 33.4 percent of manufacturing output, respectively. They also employ 120 million people in India, accounting for around 45 percent of the country’s total exports.
Also, Read- how to print udyam certificate
In India, becoming a part of the MSME sector necessitates MSME registration. Regardless of whether a firm is in the manufacturing or service sectors, it must complete MSME registration as outlined by the MSME Act.
MSME registration gives a number of advantages to businesses in terms of taxation and financing resources to help them grow. Let’s delve a little more into MSME registration in India.
What is the procedure for registering a small business?
Companies must use the udyam registration site to complete their MSME registration. Their registration is divided into two major categories:
Entrepreneurs who have not yet registered as an MSME should do so.
For individuals who have already completed MSME registration as an EM-II or UAM, registration is required (Udyog Aadhar Memorandum).
Let’s take a closer look at each of these MSME registration types.
Entrepreneurs may now register for a new MSME:
To register an MSME, simply go to the UDYAM REGISTRATION PORTAL. This may be done with or without a PAN card and an Aadhar card number.
The following are the processes for registering an MSME with a PAN card:
- On the portal, click the “For New Entrepreneurs who are not yet Registered as MSME” tab.
- On the MSME registration page, enter your name and Aadhar number as directed.
- Create and verify an OTP.
- If you already have a PAN card, the site will get information from the government database, but you will have to fill out ITR information.
- Fill up the information of your factory or industry after validating your PAN.
- Once you’ve input all of the information, you’ll need to submit it to receive a final OTP.
- MSME registration is finished after this step, and you will be given a reference number. It may take a few hours for the MSME registration to be verified, following which you will obtain the Udyam Registration Certificate.
Most of the processes for MSME Registration without a PAN card are the same as above, but you must pick “No” as an option for the question “Do you have a PAN?”
To finish the procedure, you must then fill in the remaining data – industry and personal.
To avoid Udyam registration suspension, remember to update your PAN and GSTIN on the portal.
For individuals who already hold an EM-II or UAM, MSME registration:
If you already have an EM-II or UAM registration, go to the udyam registration portal and click the ‘For those who have an EM-II or UAM registration’ button.
Then, in the following step, input your Udyog Aadhar number and generate/verify OTP. The MSME registration procedure will be completed at this point.
What are the advantages of registering as an MSME?
- Individuals that register as MSMEs have an easier time getting bank loans at lower interest rates than conventional loans.
- Under the MSME Act, businesses that have received an MSME certificate are entitled to tax exemption.
- MSMEs that are registered are given priority when applying for government licenses and certifications.
- An enterprise can obtain simple access to loans and financing by completing the MSME registration process.
- A registered MSME also receives reimbursement for the cost of ISO certification.
- It also allows the permitted MAT (Minimum Alternate Tax) credit to be carried forward for a period of fifteen years (10 years otherwise).
- Because of various reductions and rebates, the overall cost of obtaining a product patent or establishing an enterprise falls after MSME registration.
- It facilitates the acquisition of government tenders. This is due to the Udyam registration portal’s connection with the government’s e-marketplace, which allows for quick access to e-tenders.
What documents are needed to register an MSME?
Several papers are necessary for MSME registration and must be submitted by the business organization. These are some of them:
- Proof of business address
- Copies of purchase and sales bills
- Memorandum of Association/Articles of Association/Partnership Deed
- Bills and permits for machinery purchased for usage
How to check the status of MSME registration?
Using the reference number and name, you may check the MSME registration status. The following are the actions to take:
- Visit the official website of msme registration.
- As indicated in the CAPTCHA picture, enter the 12-digit UAM number followed by the verification code.
- To verify the status of your MSME registration, click the ‘Verify’ button.
How can I print or download my MSME registration certificate (Udyog Aadhaar):
The following are the procedures to print your Udyog Aadhaar online:
- Go to the Udyam registration portal.
- Enter your 12-digit UAM number as well as your registered mobile phone number.
- To print or download your MSME registration certificate, click “Submit.”