Udyam Registration which is also known as MSME Registration helps to enhance economic growth as well as helps in the creation of more employment. The benefits of this registration ranges to the tax relief as well as the government tenders and exemptions.
Want to learn a good comprehension of the MSME registration that involves its definition, advantages, documents, charges and the procedure step by step, then get all your answers here.
Getting acquainted with the concept of MSME Registration
MSME means Micro, Small and Medium Enterprises that governs companies under MSME Development Act 2006. It is also referred to as Udyam Registration that has substituted the Udyog Aadhaar Registration. MSME should be registered who will make the business be considered or accepted as Micro, Small and Medium Enterprises according to the Indian law. In this case, the business receives a distinctive Udyam Registration number and an e-certificate that has a number of benefits too.
As per the new classification that came into force effective 1 st July, 2020 under Atamnirbhar Bharat Abhiyan, the MSME are given three levels of classification based on the Annual Turnover. These are under the following classifications:
| Category | Investment | Annual Turnover |
| Micro | Not more than ₹1 crore | Not more than ₹5 crore |
| Small | Not more than ₹10 crore | Not more than ₹50 crore |
| Medium | Not more than ₹50 crore | Not more than ₹250 crore |
MSMEs Registration Benefits
Advantages of MSME Registration are multiple, and some of them are mentioned below-
- The banks are known to offer preferential interest rates to the registered businesses by the MSMEs and also credits are available without any pledge to assets.
- Various government incentives and programs such as credit-oriented programs, market access programs and subsidy program are also availed to a registered MSMEs. It is also helpful in government bedding; it raises the opportunities of obtaining tenders.
- It offers legal cover to the delay by buyers in payment and also be reimbursed any costs incurred in ISO Certification.
- The registered MSMEs are also eligible to a number of tax exemptions and tax rate of 25 percent.
- Many of the benefits available to a registered MSMEs include presumptive taxation system whereby it becomes easy to file tax returns.
- It is a booster factor of a credible business that makes it attract clients, investors and suppliers. It makes it easier to join international trade as well.
Micro small and medium enterprises registration-documents
Given below is the full list of MSME Registration:
- Aadhaar Card of the owner/partners/Directors
- PAN Card of owner/Partners/Directors
- Business Proof of Address
- Start-up Day
- Enterprise Categorization
- Bank Details
- Name and Type of business
MSME Registration Process
Go through the procedure of MSME Registration step by step here-
Step 1: Log in to the MSME/Udyam registration portal at – https: //udyamregistration.gov.in.
Step 2: Input your Aadhaar number- In case you need to enter Aadhaar of the proprietors in case of proprietary concern and partnership and company, you need the Aadhaar number of the authorized signatory.
Step 3: Just type in the OPT that is sent to the linked mobile number in order to verify.
In step 4, provide the business information which include, the name of the business, the address of the business, the nature of the business, the bank details and other information which may be required.
Step 5: Micro, small and medium enterprise category should be chosen on the basis of business investment and turnover.
Step 6: Submit the Application after getting the form filled properly.
Step 7: On completion your URN (Udyam Registration Number) and e-certificate are created and sent by mail.
MSME Registration fees
The MSME Registration or the Udyam Registration does not incur any government fees. Small business does not face a torment of the application and process cost to register itself on the official portal. Yes, when you file it by any professional then it will have extra charges basis the service radius.
Registration time of MSME
The process of registration in the MSME is designed as being effective and time-saving. As a rule, the process of registration on MSME registers or Udyam Registration is produced automatically. However, the whole procedure might last minutes to the most 24 hours. This fully online procedure makes it unnecessary to go to a visit and a presentation of documents. After the authority has issued the certificate you are in a position to download it immediately on the portal and it would be valid throughout life without the need to renew it.
Frequently Asked Questions
Q1. Who qualifies to the MSME Registration?
Ans. Every firm who engages in either manufacturing or service with an investment of less than 1 crore in Micro, less than 10 crores in small and less than 50 crores in Medium entrepreneurship can be registered as MSME.
Q2. What is the 15 percent subsidy of MSME?
Ans. The MSMEs can avail capital subsidy under the Credit Linked Capital Subsidy Scheme (CLCSS) up to 15 per cent of the margin money with a limit of 15 lakhs.
Q3. Who will issue MSME Certificate?
Ans. MSME certificate is issued by the Ministry of Micro, small Medium enterprise, government of India. The government official portal allows the applicant to get this certification.
Q4. Who is considered to be MSME?
Ans. According to the definition provided in the MSME Act, any businesses which are engaged either in manufacturing or in service industry and meet the investment and turnover threshold benchmarks are classified under MSME.
Q5. Is it possible to register my MSME alone?
Ans. Well, you may code your MSME single-handedly but this may turn out to be a complicated process and thus the need to seek professional advice.