MSME Registration in India : MSME stands for Micro, Small and Medium enterprises. In a developing country like India, MSME Industries are the backbone of the economy. When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small scale industries or SSI’s.
Even if the Company is in the manufacturing line or the service line, registration for both these areas can be obtained through the MSME Act. This registration is not yet made mandatory by the Government but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.
MSME Online Registration process
MSME Registration is completely online. MSME online registration is to be done in the government portal of udyamregistration.gov.in. The registration of the MSMEs can be done under following two categories in the portal:
- For new entrepreneurs who are not registered yet as MSME or those with EM-II
- For those having registration as UAM and For those already having registration as UAM through Assisted filing
Documents required for MSME Registration
Before applying for Udyam registration, the proprietor or owner of the enterprise is required to have the following documents:
- Aadhar card
- PAN card
- GSTIN(GST Identification number) if the enterprise is required to be registered under GST law.
Benefits of MSME Registration
Registration of your MSME is not mandatory. If you choose to register, then your business can enjoy an excise exemption scheme from direct taxes, avail special schemes from banks custom made for MSMEs, and many more.
Also, registered businesses with an MSME certificate will benefit from various government departments, including electricity.
Here are some of the benefits:
- Lowest interest rates on bank loans
- Avail tax rebates customized for MSMEs credit for Minimum Alternate Tax (MAT)
- Very easily accessible credit for MSMEs
- Reimbursement of ISO Certification
- Avail special rebates and concessions on patents and industry set-ups
- One time settlement fee for the amount unpaid
- Government preference to MSMEs
- Concession in electricity bills
- Get credit guarantee schemes from the Government
- Bar code registration subsidy
MSME Registration Fees
MSME Registration is totally free on the udyam portal. There are no fees charged for filling and submitting the MSME registration form. It can be obtained by applying only on the Udyam portal.
MSME Registration certificate
After submitting the MSME registration form online, a message of successful registration with a reference number will appear. The Ministry of MSME will issue the Udyam Registration certificate or MSME certificate to the email ID of the entrepreneur after verification of the registration form submitted on the portal.
The Ministry will issue the MSME certificate after a few days from the submission of the registration form. The MSME registration certificate validity is for a lifetime. Thus, it requires no renewal.