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MSME Registration in India

Looking to grow your business and get access to government schemes and subsidies? Get your MSME registration done with our consultants.

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MSME Registration- An Overview

MSME stands for Micro, Small, and Medium Enterprises, which are considered one of the backbones of the Indian economy. These industries are often referred to as Small Scale Industries (SSIs). It is highly recommended that every MSME-based business obtain MSME registration from the Government of India and enjoy subsidies, rebates, and other financial benefits to empower their business venture.

Recently, the MSME Udyam registration process replaced the old micro, small, and medium enterprise registration process, making it easier and faster to register MSME online. Businesses that meet the MSME criteria can apply for registration on the official Udyam portal, where they will receive a permanent registration number online. Get expert help to MSME register online and save your money and time.

What is MSME Udyam Registration?

MSME Udyam registration is essentially an MSME registration that every Micro, Small, and Medium Enterprise in India should obtain from the Government of India. While it is not mandatory for an MSME to have this registration, having it provides access to various government benefits, including tax incentives, establishment support, credit facilities, and loans.

To facilitate this process, the Government of India, through the Ministry of MSME, has launched the Udyam registration official portal. This initiative aims to digitize India and streamline the micro small and medium enterprises registration process, making it more efficient and accessible for business owners.

Benefits of MSME Online Registration

MSME registration allows businesses to access various benefits and support schemes from the Government of India, helping them grow effectively. Below is a list of the benefits associated with MSME online registration in India:

Access to Cheaper Loans

MSME registration holders can access loans with interest rates as low as 1 to 1.5% comparatively much lower than the regular loan.

Credit Relating to MAT

MSMEs can carry forward minimum alternate tax (MAT) credits for up to fifteen years instead of the usual ten years.

Rebates and Concessions

MSME company registration ensures the availability of various rebates and concessions for registered businesses.

Concessions on Patent Registration

MSME Udyam registration holders are eligible for concessions on patent registration costs.

Access to Government e-Marketplace

Registered MSMEs can utilize the Udyam Registration Portal to access the Government e-marketplace and participate in e-tenders.

One-Time Settlement Fee

MSMEs facing payment issues with vendors can benefit from a one-time settlement fee.

Government Schemes Benefits

Udyam Registration assists MSMEs in securing benefits from various government schemes designed to support their growth.

Priority Sector Lending

Entities with MSME company registration are eligible for priority sector lending from banks, facilitating easier access to funds.

Government Security Deposit Waiver

MSMEs can benefit from a government security deposit waiver, making it advantageous when participating in e-tenders.

Subsidy for Barcode Registration

MSME online registration ensures access to subsidies for barcode registration, enhancing product visibility.

Exemption on Direct Taxes

Registered MSMEs can benefit from exemptions on direct taxes through various tax-saving schemes.

Fees Relaxation for ISO Certification

MSMEs enjoy relaxed fees for obtaining ISO certification and promoting quality standards.

Electricity Bills Concession

Register MSME online and enjoy the concessions on electricity bills, reducing operational costs.

Exposure to Trade Fairs

Micro small and medium enterprises registration ensure participation in trade fairs at both domestic and global levels, providing valuable networking opportunities.

 

Entities Eligible to Register MSME Online

The entities eligible to register MSME online are as follows:

Checklist for MSME Udyam Registration

  • Sole Proprietorship
  • Cooperative Societies
  • Hindu Undivided Family (HUF)
  • One-person Companies
  • Partnering Firm
  • Limited Liability partnership
  • Association of Persons
  • Any other undertakings

MSME Classification

  • Micro businesses are defined as having an investment of up to ₹1 crore in plant and equipment or machinery and an annual turnover of up to ₹5 crore.
  • A small business is defined as having an investment of up to ₹ 10 crore in plant and equipment or machinery and an annual turnover of up to ₹50 crore.
  • A medium business is defined as having an investment of up to ₹ 50 crore in plant and equipment or machinery and an annual turnover of up to ₹200 crore.
Documents Required to Register MSME in India

The list of documents required to register MSME in India are as follows:

  • Aadhar Number
  • GSTIN (In case of Company or LLP, Cooperative Society or Society or Trust)
  • Registered office address
  • PAN Card
  • Address of the Business
  • Bank Account Number
  • Description of Business Activity
  • NIC 2-Digit Code
  • Details of Investment
  • Details of Turnover
  • Partnership Deed (if Applicable
  • Sales and Purchase Bill Copies
  • Copies of Licenses and Bills of Purchased Machinery

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Step-by-Step MSME Online Registration Process

Here, given below is the step-by-step MSME online registration process:

Access to the Udyam Registration Portal

Visit the official website of MSME Udyam registration to start with the application for MSME registration.

Aadhar Card Details

It is followed by entering the Aadhar Card details and the name of the applicant entrepreneur.

Details of PAN Card & Type of Organisation

Next, enter the type of organisation and details of the PAN card. However, the portal automatically validates the PAN card details from the government databases.

Filling of Personal Details

Once the PAN card is validated, the Udyam registration form will pop up, and the applicant must fill in all the necessary details and information.

Details of Investment & Turnover Details

In the later stage, the applicant needs to fill in the details of investment and turnover of the enterprise seeking MSME online registration.

Issuing of MSME Registration Certificate

After careful completion of the registration formalities and evaluation by the concerned authority, the Udyam registration certificate will be sent through the applicants’ email.

Top Industries that Prefer MSME Registration

Key Industries

  • Manufacturing Industry
  • Textiles and Apparel Industry
  • Food Processing Industry
  • Information Technology
  • Construction and Real Estate
  • Agriculture and Agribusiness
  • Pharmaceutical Industry
  • Retail and E-commerce
Other Significant Industries
  • Renewable Energy
  • Media and Entertainment
  • Chemical Industry
  • Telecommunications
  • Logistics and Supply Chain
  • Automotive Industry
  • Tourism and Hospitality
  • Leather and Footwear

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