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