About MSME Registration in India

The Ministry of Micro, Small and Medium Enterprises has issued a notice of June 26 2020, concerning revisions to the definition of MSME registration process in India. In addition to the previous criteria for categorizing MSMEs based on investments in Plant and Machinery / Equipment, another factor of turnover has been added.

In announcing the economic package, which is a part of Aatmanirbhar Bharat Abhiyaan, FM Nirmala Sitharaman on Wednesday announced changes to what is considered to be Micro, Small and Medium Enterprises (MSME). In the past, MSMEs were defined according to the investment made, but the new definitions will include business turnover.

FM Sitharaman also declared that there would be no difference in Manufacturing and Service MSMEs. "Earlier, the requirements of manufacturing and service units were distinct. The distinctions between Service and Manufacturing MSMEs are being eliminated. They will be described in the same way," she said.

Benefits Of MSME Registration in India

1. There are many advantages of Udyam Registration. You can benefit from government subsidies such as MSME/ Subsidiesor Low-Interest loans/Collateral No-cost Loans by signing up under the new MSME schemes. The ex-direct tax law rules exemption, patent subsidies for registration, interest rate subsidy of Bank loans, collateral-free bank loans, ease of getting registrations, licenses, and approvals, etc.

2. There is no need to renew the registration

3. The registration process is completely digital and is based on self-declaration

4. A variety of activities, including manufacturing, service or both, can be included in one registration.

5. Paperwork is reduced, and there is a less cumbersome process

6. In contrast to the standard minimum Alternate Tax (MAT) period, which is 10 years to credit, MSMEs can extend this period to 15 years of Credit against MAT.

Documents Required for MSME Registration in India

No documents or evidence are required to be uploaded to apply for MSME registration.

Only an Aadhar Number is required.

The Aadhaar number is of the owner of a proprietorship company or a managing partner in the instance of a partnership-based firm and a Karta in the event of a Hindu Undivided Family (HUF)

If a company or Limited Liability Partnership or a Cooperative Society or a Society or Trust, the entity or the signatory who is its authorized representative must give its GSTIN and its PAN, along with its Aadhaar number.

A GST and PAN Numbers are mandatory starting 01.04.2021

Method of Registering:

Note:

If you have EM-II or UAM registration, or any other registration issued by an authority within the Ministry of MSME, you will be required to renew their registration.

The company must not submit multiple MSME Registration.

A. FOR REGISTERING AS A NEW ENTREPRENEUR

 1. For registering for New entrepreneurs, click the link "For New Entrepreneurs that are not yet MSME registration process or have EM-II" on the homepage.

2. When the button "For new entrepreneurs who have not yet registered as MSME or have UAM-II" is clicked, it opens an application page. To register, the user must input the Aadhaar Number and the business name in the columns on the page. Then, click "Validate & Generate OTP" and "Validate & Generate OTP".

3. After pressing this button, PAN card information is to be filled in, and after confirmation that the PAN card and filling Udyam information, MSME registration is completed. If the business owner does not possess the PAN card, they can start filling in the Udyam registration details, and the registration process will be complete.

B.FOR ALL THOSE WHO ALREADY HAVE REGISTRATION

1. For those already with UAM registration and wish to move to Udyam or re-register UAM by clicking the link "For those already registered as well as "For those who already have registration as UAM via assisted filing".

2. When "For those already with registration status as EM-II, or UAM" or "For those who already have registration as UAM through assisted filing" is clicked, it will open a registration webpage. To register, the user has to input the Udyog Aadhaar Number, and an OTP option must be selected.

3. The options available to receive OTP via mobile devices or email when filled out in UAM. When selecting one of the OTP Options, click "Validate & Generate OTP". After entering OTP and registration information, the details need to be completed, and the registration will be completed.

THE POST- MSME REGISTRATION PROCESS

1. A Permanent registration number will be issued following registration

2. After completion of the registration process, the certificate will be issued on the internet. To download the Certificate, click on "Print/Verify" the option will be "Print Udyam Registration Certificate". When you click on it, the screen will pop up, requiring MSME Registration Online and mobile numbers (used to register). An OTP can be created. Once this is done, you'll be able to save the Certification.

Penalties in the event of misrepresentation or misinformation of facts:

Penalties for false representations or attempts to obfuscate self-declared facts and figures will be punished as follows:

• In the event of a 1st Conviction and a fine that could be as high as Rs. 1000or more.
• In the case of a second or subsequent conviction, there will be a fine not lower than. 1000/- however, it may be increased up to 10,000 rupees. 10,000.