MSME stands for Micro, Small, and Medium Enterprises, and it is the Indian economy’s underpinning framework. It gives our economy the necessary 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 over 45 percent of the country’s total exports.
In India, becoming a part of the MSME sector necessitates Udyam registration. Regardless of whether a company is in the manufacturing or service sectors, it must complete MSME registration as outlined by the MSME Act.
MSME registration provides a number of advantages to businesses in terms of taxation and financial resources to help them grow. Let’s delve a little more into MSME registration in India.
Micro, Small, and Medium Enterprises (MSME) are defined as businesses that are small and medium in size.
Determining the size of a business in terms of investments is an important aspect of MSME registration. Previously, MSME classification was based on the amount of money spent in machinery, equipment, or plants.
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 broad categories:
- Entrepreneurs who have not yet registered as an MSME should do so.
- For those 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 categories.
Entrepreneurs can now register for a new MSME:
To register an MSME, simply go to https://udyamregister.org/. This can be done with or without a PAN card and an Aadhar card number.
The following are the steps for registering an MSME with a PAN card:
- On the portal, click the “For New Entrepreneurs who are not yet Registered as MSME” button.
- 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 details of your factory or industry after validating your PAN.
- Once you’ve completed 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 days for your MSME registration to be verified, after which you will obtain your Udyam Registration Certificate.
Most of the stages for MSME Registration without a PAN card are the same as above, however, 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 fields – industry and personal.
To avoid Udyam registration suspension, remember to update your PAN and GSTIN on the portal.
- For those who already have an EM-II or UAM, MSME registration is available.
If you already have an EM-II or UAM registration, go to https://udyamregister.org/ and click the ‘For those with an EM-II or UAM registration’ tab.
Then, in the following step, enter your Udyog Aadhar number and generate/verify OTP. The MSME registration process 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 normal loans.
- Under the MSME Act, businesses that have earned an MSME certificate are entitled for tax exemption.
- MSMEs that are registered are given priority when applying for government licences and certificates.
- An enterprise can gain 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 allowable MAT (Minimum Alternate Tax) credit to be carried forward for a period of fifteen years (10 years otherwise).
- Because of many incentives 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 linkage with the government’s e-marketplace, which allows for simple access to e-tenders.
What documents are needed to register an MSME?
Several documents 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 permissions for machinery purchased for usage
How can I find out if my MSME registration is active?
Using the reference number and name, you can check the MSME registration status. The following are the measures to take:
- For MSME registration, go to the official website.
- As displayed in the CAPTCHA image, enter the 12-digit UAM number followed by the verification code.
- To verify the status of your MSME registration, click the ‘Verify’ button.
How do I print or download my MSME registration certificate (Udyog Aadhaar) from the internet?
The following are the methods to print your Udyog Aadhaar online:
- Visit the Udyam registration page for further information.
- Enter your 12-digit UAM number as well as your registered mobile phone number.
- To print or download your udyam registration certificate, click “Submit.”