The expansion of the burgeoning MSME sector across the globe is seen at the moment. This sector contributes significantly to the Gross Domestic Product (GDP) and socio-economic development, with a CAGR of 18.5%.
The Ministry of MSME runs a number of initiatives to provide needed help to entrepreneurs, reviving the sector’s growth, and provide clear employment options. Regardless of whether you are beginning a new business or already have one, MSME registration is required to get the most out of it.
What exactly is MSME?
Let’s go through the basics of MSME before we go into the registration process. The full version of Micro, Small, and Medium Enterprises (MSME) is Micro, Small, and Medium Enterprises. To put it another way, a business can be categorized based on its equipment, machinery, and investment cap.
The annual turnover of businesses was then included in the list of determinants under the ABA or Atma Nirbhar Bharat Abhiyan. If you have several MSMEs, you need to register each one separately and obtain the appropriate MSME certificates.
The interpretation of these categories, on the other hand, has ramifications. Any MSME business profit that exceeds the investment limit defined for its category (Micro/Small/Medium in the MSME complete form) is wiped out.
The Advantages of MSME Registration:
Loans and assistance are required for any firm, especially those in their early stages, in order for the owner to acquire the necessary resources and flourish. However, carrying a heavy load of EMIs and loans with high interest rates at the start of a firm is no easy task.
As a result, in order to aid in the upliftment of MSMEs, the Ministry of MSMEs offers a number of schemes to owners, which they can only access after registering. The following are the benefits you can get from the Government of India (GOI) once you have completed your MSME registration:
- Obtain a tax exemption, i.e., income that is not subject to federal or state taxation.
- Minimum Alternate Tax can be extended for up to 15 years instead of the customary ten.
- Priority is given to individuals who have registered with the Ministry of MSMEs on license applications and other matters.
- Take advantage of concessions, partial refunds, or rebates for the costs of establishing the industry or patent.
- It’s simple to get credit for your company.
- Take advantage of government-sponsored programs such as the Prime Minister Employment Generation Programme (PMEGP), SFURTI, CGTMSE, and others.
- Preference can be obtained using the Udyam Registration Portal.
To take advantage of these attractive MSMEs perks, you must first complete your MSME registration.
Documents necessary for registration include the following:
Before you begin the registration procedure, make sure you have the necessary documents on hand:
- Proof of your company’s address
- A copy of the purchase bill book as well as sales receipts
- Expenditure bills and receipts for essential machinery and equipment
- Copy of the Industrial License
- Aadhaar Number is a unique identification number issued by the government of India.
- Number of your bank account
- IFSC (International Financial Services Code)
- COde NIC
- Make use of data (only if it is applicable)
- Count of Employees
- When did your company start?
- Required details of a partnership in the case of a partnership enterprise.
- GSTIN (GST Identification Number) certificate
- In the event of a registered partnership firm, a registration certificate is required, whereas, in the case of an unregistered partnership firm, a partnership deed is required.
- Association Memorandum (MoA)
- Association Articles (ADA)
- Certificate of Incorporation (Certificate of Incorporation)
- A copy of the resolution passed at the corporate meeting is attached.
- The director has authorized and signed a copy of the Board Resolution.
- A PAN card is recommended. There is, however, a way to register an MSME without a PAN.
You’re ready to submit your MSME application once you’ve gathered all of this documentation.
The portal allows both new and pre-registered businesses to register. To ensure a seamless and quick MSME registration, follow the steps below, depending on the category your business belongs to:
For New Entrepreneurs Who Have Not Yet Registered
- Go to the udyam registration page.
- Select the relevant category of not being a registered MSME on the homepage.
- Fill in your Aadhaar number and name on the Registration Page that appears.
- Validate your entry to generate OTP.
- After entering the received OTP, the PAN Verification page appears.
If you do not have a PAN card, you must:
- Because you don’t have PAN, select “no” and then “Next.”
- Fill in the personal and professional information requested on the Udyam Registration Page.
- Select “Final Submit” from the drop-down menu.
- A registration number and a “Thank You” message would appear.
- To avoid your MSME registration being suspended, get your GSTIN and PAN updated on the platform as soon as possible.
If you have a PAN card, however:
- The portal automatically obtains and fills in all of the relevant information from the database.
- Complete the required ITR information.
- To validate your PAN, click the “Validate PAN” button.
- Fill in your personal and professional information.
- Send it in and wait for the OTP.
Suggested Read- print Udyog aadhaar certificate
Entrepreneurs that already have the EM-II or UAM certifications:
- Go to the udyam registration page.
- Click “For those with registration as EM-II or UAM” or “For those with registration as EM-II or UAM through Assisted Filing” on the homepage.
- Select the OTP option after entering your Udyog Aadhaar number.
- Select “Validate and Generate OTP” from the drop-down menu.
- Complete the registration form.