The Micro, Small, and Medium Enterprises (or MSMEs) in India are one of the most significant reasons for the growth of the economy.
As MSMEs grow, they boost the economy of the country and generate a variety of employment opportunities. This has led to the inception of countless businesses throughout the country.
An MSME registration could be seriously beneficial for your business. The government of India provides a variety of incentives, subsidies and offers to MSMEs from time to time via the MSMED Act. To avail of these benefits for your business, it is important to get your MSME registered.
Also Read: An Overview Of MSME Registration In India: Process & Benefits Discussed
Benefits of Registering Your MSMEs
As you register your company, you practically unlock various benefits from organizations and institutions around you, even the government. Some of these benefits include:
Cheaper Loans: Registering your MSME allows you to get approval on your business loan faster than usual. You also enjoy loans with lower interest rates as compared to regular loans.
Cheaper patents: MSME registration unlocks reduced patent prices as it provides a variety of concessions across many purchases.
Government schemes: MSME registration also allows you to enjoy a variety of government schemes like Protection against delayed payments, Credit Guarantee Scheme, and Public Procurement Policy.
Security deposit waiver: MSMEs can also avail a government security deposit waiver that helps them participate in e-tenders.
Other benefits: MSME registration also allows other benefits like barcode registration subsidy, exemption scheme from direct taxes, electricity bill concessions, ISO certification fees reimbursements, and more.
Also Read: Evolution of SME Lending In India
Documents Required For An MSME Registration
To get your MSME registered, there are a few important usual documents that you can keep ready. These documents include:
- Your personal Aadhaar number
- Your address proof
- Your company name
- Your company account details
- The details of the owner(s) of the company
- The PAN card details of the owner (the registration can happen without the PAN card as well)
- Copy of sales/purchase bill
- Partnership deed and an MoA
- Company licenses
These documents are important for you to get started with the registration process of your company. As you are submitting your SSI registration application online, you can also keep a digital copy of these documents so that you can upload them instantly.
How To Register Your MSME In India
MSME registration in India is a fairly simple and convenient process.
It all starts with visiting the Udyam Registration official website.
MSME registration can be done for the following two categories:
- New entrepreneurs not registered as an MSME yet
- Entrepreneurs having a UAM or EM-II registration
Also Read: Highlights Of The MSME Budget 2022-23
New Entrepreneurs Not Registered As An MSME Yet
As an entrepreneur who hasn’t registered their MSME yet, you can choose the option “For new entrepreneurs” on the home page of the website.
After you click the button, your registration process (with the help of your Aadhar card) will begin.
Registration can happen in two ways:
Registration with PAN card details
As you fill in your Aadhaar number on the website, you can enter your details along with your name. After you click on “validate and generate OTP”, the next page opens and asks for PAN verification. As you own a PAN card, your details are taken from the database of the govt and filled in automatically. After that is done, you have to file the ITR details as an applicant entrepreneur.
After the details are filled, the message, you will see the message “Udyam Registration has been done through this PAN”. You have to click on “Validate PAN”. As soon as your PAN is verified, the portal shows the Udyam Registration box that asks for your personal details and the details of the industry that your business is a part of. After filling in all the details, you can click on “Submit and get final OTP”.
This completes your MSME registration with a PAN card. You can expect the Udyam Registration Certificate a few days after that.
Also Read: Udyam Registration Online For MSME’s
Registration without PAN card details
Your MSME registration without a PAN card is initially the same as that of registering with a PAN card up to the step of “Validate and Generate OTP”. As you enter the OTP, the next step is to click on “No” when the prompt “Do you have a PAN?” appears. This opens up the Udyam Registration page, where your personal details and the details of your industry need to be entered.
After everything is filled, you can click on the “Final Submit” button, and you will get your registration number.
One thing worth noting is that even though you can register yourself as an MSME without a PAN card, you have to apply for the PAN and GSTN after registration.
Entrepreneurs Having A UAM or EM-II Registration
If you are already registered as UAM or EM-II, you can click on the latter option that says “For those having EM-II or UAM registration” on the Udyam registration website.
Clicking this button sends you to the page where you must fill in your Udyog Aadhaar Number and request an OTP.
After you enter your OTP, you can click on “Validate and Generate OTP” further has to be entered into the popup that appears on your screen. After validating the final OTP, your Udyam registration procedure is complete.
Conclusion
The MSME act allows all kinds of businesses in India to be registered under it.
While registration is not mandatory, registering your MSME can help you avail of different benefits from the government. The process will also help in making your business more streamlined and established.
Not just that, but registering allows you to reap benefits for your business in terms of loans, taxation and credit facilities. Small and medium organizations can harness the most benefits from the MSME act.