What do you mean by MSME Registration?
MSME registration is a need for every firm to establish and function lawfully in India. MSME registration is free of charge, and it is divided into two categories: manufacturing firms and service organisations. Micro, small, and medium enterprises (MSME) refers to any business that fits into one of these three categories. Small and medium-sized businesses (SMBs) are the bedrock of every economy and an engine of economic progress, enabling fair development for all. MSME businesses are often more workers than major corporations, and they may create a lot of jobs for a modest investment. MSME also accounts for a large amount of India’s industrial production and exports. It is also crucial to the growth of the economic structure.
What are the benefits of MSME Registration?
TheMSME registration is not required by law. The MSME registration procedure in India, on the other hand, has been designed to help all sorts of businesses. After registering, any business is eligible to take use of the MSMED Act’s benefits. Easy bank loan approval (Priority sector lending), cheaper interest rates, an excise exemption plan, exemptions under Direct Tax Laws, and legislative support such as reservation and the Interest on Late Payments Act are only a few of the perks provided by the Central Government.
State governments and union territories have also put up their own set of incentives and services for MSMEs. The establishment of specific industrial estates, tax subsidies, electricity tariff discounts, capital investment subsidies, and other support are some of the advantages offered by the State Government for MSMEs. Both the Centre and the State aim their incentives and assistance packages to all appropriate calibration with them, whether by law or otherwise.
What are the processes required for the MSME Registration?
Businesses who wish to take advantage of the government’s MSMEs advantages must first register on the ‘Udyog Aadhaar Memorandum platform.’ The MSME registration procedure is straightforward and completely free for all users. The procedure that is required for the MSME Company Registration are as follows:-
- You will be needed to fill out a form on the Udyog Aadhaar Memorandum Platform site.
- Select ‘Validate & Generate OTP’ after inputting your Aadhaar number and name.
- After you’ve completed the authentication, you’ll need to fill out the PAN information. If you do not have any PAN card, you can choose No.
- After that, you must complete the form with fields 5 through 24.
- An OTP notification will be sent to your phone once more at the end of the form. To properly submit the form, enter the OTP and confirmation code.
What are the schemes launched by the Government?
Like theMSME Registration, the schemes that are launched by the Government are equally important. Some of the governmental schemes are as follows:-
- Women’s entrepreneurship – This programme was created to support and motivate the women who wished to establish their own business or produce something. Women in this country receive financial assistance, counselling, and training from the government to assist them better run their businesses.
- Quality assurance standards and quality technology tools – This programme aims to increase MSMEs’ awareness of the importance of quality in their goods. It promotes genuine competition among businesses in order to assure higher product quality.
- MSMEs may easily get accessible loans, financing, and government incentives via theUdyog Aadhaar memorandum plan.
- The scheme of Zero Defect Zero Effect- The government assures that commodities produced by MSMEs meet a specific quality and are not returned to India under this programme. The initiative, popularly called as the ZED, assists MSMEs in receiving refunds and incentives for their exported goods.
- The scheme of Credit linked capital subsidy- Licensed MSMEs can get cash to upgrade obsolete machinery and enhance their firm with modern technology through a credit-linked capital subsidy plan. MSMEs can approach banks directly to take advantage of this plan.
- The system of Grievance Monitoring- This programme was created to track and respond to company and MSME owners’ grievances and recommendations.
What are the documents required for MSME Registration?
The documents that are required for theMSME Registration are as follows:-
- Aadhaar card number.
- Name of the company or business.
- Bank account details.
- Address proof of the owner.
- Self-certified certificates provided by the owner of the company.
- The registration number that the owner will get after the successful submission of the form.
- No registration fee is required for the process.
- What are the alternative documents required for MSME Registration?
Address proof of the company- The allocation certificate, possession certificate, and property tax document or lease agreement are all you require because the premise is acquired by the business owner. If your business operates out of rented space, a rent statement and a homeowner’s No Objection Certificate will suffice for the MSME registration.
The deed of partnership, AOA and MOA- If the company is a collaboration one, it must present its partnership deed and, if it is a registered startup, its registration certificate. If the business is a corporation, a copy of the Memorandum and Articles of Association, as well as an article of incorporation, must be supplied. A copy of the most recent general meeting resolution, as well as a copy of the board resolution appointing a director to sign theMSME registration application, must be presented.
Purchase or sale bill- The company must produce copies of the invoices for the goods and services it sold, as well as copies of purchase invoices for the raw materials it bought.
Invoices and licences of machinery- The proprietor of the business may be required to present a copy of the government’s industrial licence. If necessary, the owner may be requested to produce copies of invoices and licences relating to the purchase and maintenance of machinery, equipment, and other items.
The above-mentioned documents are required to be submitted for the successful MSME registration.
What are the methods of Udyog Aadhaar Registration?
There are 2 methods involved in the process of Udyog Aadhaar Registration and they are as follows:-
Registration with Aadhaar number–
- Visit the official site and go to the registration section.
- Fill in your Aadhaar number and name in the areas provided on the page.
- To begin the Udyog Aadhaar registration procedure, select the ‘Validate & Generate OTP’ option and enter the OTP that will be delivered to the cellphone number linked with your Aadhaar.
- You will be routed to a new homepage with a form on which you must input your 12-digit Aadhaar number and the company founder’s name.
- Choose the applicant’s social category. If the applicant is a member of the SC, ST, or OBC categories, evidence of membership may be needed to be presented to the appropriate authorities.
- Choose the applicant’s gender.
- The name of the company through which the transaction will be carried out.
- The firm’s kind must be chosen from a list supplied on the webpage.
- The applicant’s PAN must be entered in the specified field.
- One or more plant sites can be included in a single registration by the applicant.
- The business’s entire official address (postal) should be supplied.
- The start date of the company can be entered in the specified field.
- If there have been any prior registrations, these must be submitted.
- The business’s bank account information must be given.
- The applicant must select a National Industry Classification Code that corresponds to the company’s activity.
- It is necessary to offer a track of the number of individuals employed by the company.
- The specifics of the plant and equipment investments must be disclosed.
- The DIC’s location must be determined based on the location of the company.
- After you’ve completed the form, double-check all of the information for any possible errors before selecting the ‘Submit’ option at the bottom.
- After that, an OTP will be produced and delivered to the email address given during the registration process.
- To complete the application, insert the OTP and Captcha code and select the ‘Submit’ button.
Registration without Aadhaar number-
- Apply for Aadhaar enrolment if you are qualified for Aadhaar under the Section 3 of the Aadhaar Act.
- The involved MSME-DI or DIC, on the other hand, must apply the UAM registration upon presentation of the following documents:
- A copy of the Aadhaar enrolment application or an Aadhaar Enrolment ID paper
- One of the required items: a voter identification card, a driver’s licence, a passport, a bank passbook with a photograph, a PAN card, and so on.l
How to get the Udyog Aadhaar Registration Certificate?
The steps that are required to be followed to get the Udyog Aadhaar Registration Certificateare quite simple and easy. After confirming the registration form completed on the portal, the Ministry of MSME will send the Udyog Registration certificate or MSME certificate to the entrepreneur’s email address. After a few days have passed after the registration form was filled, the Ministry will provide the MSME certificate.
Anybody who wishes to open a micro, small, or medium business can use the Udyam Registration portal to fill out a self-declaration form with no need to upload any paperwork, papers, certifications, or evidence.
