The Ministry of Micro, Small and Medium Enterprises, broadly known as MSME, is a major government body that deals with the formulation and management of rules, guidelines and laws relating to small scale industries in India. MSME came into force on 02nd October, 2006. It aims to encourage, facilitate and boost the competitiveness of MSMEs operating across India.
MSME i.e. Micro, Small and Medium Enterprises is considered to be the backbone of the Indian economy. The MSME sector comprises a large number of small scale industries, making it one of the major GDP contributors to India. MSME is a government-backed initiative that seeks to promote the development of small scale industries operating in the organized and unorganized sectors.
The earlier prevalent MSME classification was based on the criteria of investment in production facilities and machinery. So to access MSME advantages, the MSMEs have to constrain their investment to the lower level, as shown below:
PAN and Aadhaar card are the only essential documents required for MSME registration. This registration is completely web based and no document proof is required. GST and PAN related details on annual turnover and investment of enterprises will be automatically saved by the portal from the government database.
Udyam Registration Portal is a government supported portal which is synced with Income Tax and GSTIN systems. Obtaining GST registration is not mandatory for those enterprises which are outside the purview of GST law. But, enterprises that come under the GST regime need to secure GST registration in order to obtain Udyam Registration.
- MSME registration can be secured by applying on the Udyam portal and the portal will not charge any fee for such registration.
- After applying, a confirmation message will appear on the computer screen enclosing the reference number of the said application.
- The Ministry of MSME will provide an MSME Certificate or Udyam Registration Certificate on the email ID of the applicant after completion of verification formalities. MSME will provide registration after a few days from the date of submission of the MSME application.
- The MSME certificate is valid for life and does not require renewal.
- Entrepreneurs can download the MSME certificate from the respective account created on the Udyam Registration Portal.
Points to ponder:
- Those who have UAM registration or any other registration granted by any authority under MSME, should register on Udyam Registration Portal under “For New Entrepreneurs who are not yet registered as MSME or registered with EM-II” Re-registration should be done by selecting the option.
- Enterprises having UAM registration will have to opt for Udyam Registration through the migration process by 31/12/2021.
- If the entrepreneur fails to comply with the above conditions, the UAM registration will be invalidated, and they will not get any benefit under the MSME scheme.
- MSME registration holders have access to affordable loans at interest rates as low as 1.5%.
- Ensures credit relating to MAT, i.e. Minimum Alternate Tax to be carried forward for five years instead of 10 years.
- Ensures availability of any exemptions and concessions for MSME registration
- MSME registration holders can avail concessions on patent registration.
- MSME registration holders can use the Udyam Registration Portal to get access to Government e-Marketplace and e-tenders.
- One time settlement fee for MSMEs facing payment issues with vendors.
- Udyam Registration will help the MSME to avail the benefits of the following government schemes.
- public procurement policy
- Credit Linked Capital Subsidy Scheme
- credit guarantee scheme
- Entities with MSME registration are eligible for priority sector loans from banks.
- MSMEs have access to government security deposit waiver, which is beneficial while participating in e-tenders.
- Ensures subsidy for barcode registration
- Ensures rebate on direct taxes through various tax saving schemes
- Fee Exemption for ISO Certification
- Concession in electricity bills.
- Ensure exposure to trade fairs organized domestically and globally
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Yes, Aadhar Card is mandatory for MSME Registration
MSME Certificate is valid for life until you exceed the turnover criteria as defined in the MSMED Act
Q. What if my mobile number is not linked with aadhar card? Can i still apply for MSME Registration?
Yes, you can but it’s a lengthy process it is better to link Aadhar card with an active mobile number to get MSME registration certificate instantly
ST number on your Email id.registration
We will provide you MSME Certificate within 2 working days
Yes legalStartup is an online platform serving all over India no matters wherever you are doing business all you need is required documents and internet connection on your mobile or desktop and we are ready to get your job done
MSME registration is the process of registering a business as a micro, small, or medium enterprise with the Ministry of Micro, Small and Medium Enterprises (MSME) in India.
Any business that is involved in manufacturing or service activities and meets the criteria for micro, small or medium enterprises can register for MSME.
Some benefits of MSME registration include access to government schemes and subsidies, priority sector lending, exemption from certain taxes, and protection against delayed payments.
The process for MSME registration involves submitting the necessary documents and details such as Aadhaar, PAN, bank account details, and business registration documents to the Udyam registration portal.
No, there is no fee for MSME registration.
The MSME registration process is usually completed within a few days of submitting the application.
Yes, a business can register for MSME even if it is not registered under any other act.
No, MSME registration is not mandatory, but it is recommended for businesses that wish to avail the benefits offered to MSMEs.
No, MSME registration is valid for a period of five years, after which it must be renewed.