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MSME Registration In India- Who Can Get and How?

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MSME Registration in India was created to make it easier for business owners to register their businesses under Micro Small Medium Enterprise (MSME) or Micro Small Medium Enterprise.

The process for obtaining MSME registration was complicated and time-consuming. It also required a lot of paperwork. With the introduction of MSME registration, things have changed somewhat and are now easier for small and medium-sized businesses.

You can register your Udyam through MSME Registration if you are a small, medium, or micro-enterprise owner and enjoy many benefits.

Before the UAM system, there was an earlier system of EM/II (Entrepreneur Memorandum). Entrepreneurs used to choose a heterogeneous system under this system.

Some used to rely upon the national portal. Other states had their portals for MSME Registration In India. Many of them also rely on paper paperwork.

Things have changed since the replacement of the outdated system.

What is MSME Registration in India?

Many new entrepreneurs need clarification about MSME registration. You are in the correct place if you have the identical question.

MSME Registration, also known as Udyam registration, is a government-issued registration in India. It includes a recognition certificate and a unique identification number. This is used to certify small/medium enterprises or businesses.

This facility was launched to allow the government to maximize the benefits of small and medium-sized businesses in India.

The owner, director, or proprietor must provide their 12-digit Aadhar number. This number is mandatory regardless of whether the entity or enterprise is a sole proprietorship, LLP, Private limited company, or any other type. The MSME registration process should provide the recognition certificate.

Who Can Get MSME Registration In India?

Let's clarify some things! MSME Registration is open to organizations involved in the manufacturing, processing, preservation, or preservation of goods and providing services. Online MSME Registration process is not available to traders who import, export, buy, or sell the goods.

However, you need to know that to qualify for MSME registration, an entity must meet several criteria.

Types of enterprises for opting MSME Registration In India (for the manufacturing or service sector, both)

Micro Enterprises: Investments up to Rs 1 Cr, and turnover upto Rs 5 Cr

Small Enterprises: Investments up to Rs 10 Cr, and turnover upto Rs 50 Cr

Medium Enterprises: Investments up to Rs 50 Cr, and turnover up to Rs 250 Cr

Online MSME Registration Process in India

MSME Registration is very simple. The form-filling process is also relatively straightforward. Today's system is more modern and requires less information than in the past. The MSME Registration is free, and there is no charge for it.

The process is much more straightforward and efficient. This is how to register under MSME and obtain an MSME registration Certificate.

Step 1: Go to the Official Website

Visit the MSME Registration portal to register your business online.

Click the "For first-hand entrepreneurs who aren't listed yet as MSME" button.

Step 2: Fill in your Personal Information

Your name and 12-digit unique Aadhaar numbers will be the first details you need to enter. Click "Validate & Generate OTP'' to receive an OTP on the registered mobile number. Enter the OTP.

Step 3: PAN Verification

Click on the validate button and choose the type of organization. PAN validation occurs.

Suppose a Company / LLP / Cooperative Society / Society / Trust is involved. In the case of MSME Registration In India, its authorized signatory must provide the GSTIN/PAN of the Company / LLP / Cooperative Society / Society / Trust with his Aadhar number.

Step 4: Fill in the Correspondence Details

After filling in all the details mentioned above, the following information you will have to provide will be the complete postal address of the company/enterprise/entity. Information about the District, pin code, state of your company, email address, and mobile number.

Step 5: Fill in the Bank Information

Enter your active bank account number and the IFSC code for the branch. You can get the IFSC code for the branch you are interested in on the bank's site.

Step 6: Enterprise Details

The main activity of your business must be distinguished from "services" and "manufacturing." The total number of employees and the National Industry Classification (NIC) Code for Activities will be required.

After you've filled out all the details, the final thing is to enter the total amount (in lakhs) invested in the machinery or plant.

Step 7: Choose the District Industry Center, and accept the Declaration

The final step in this MSME registration process in India is to select the district industry center from the drop-down menu. You will need to accept the Declaration, then click "Submit and get the final OTP."

Enter the OTP sent to your mobile device and click the "Final Submit" button.

After clicking "Submit and Get Final OTP," you will be issued a registration number. After the government has verified all of your information, you will be sent an E-registration letter via your email address.

About Existing Businesses

All enterprises currently registered under EM-Part-II (UAM) shall register again at the MSME registration portal after 1 July 2020.

Existing enterprises that were registered before 30 June 2020 will continue to be valid for a period of 31 March 2021.

Any registered enterprise with any organization under the Ministry of Micro, Small, and Medium Enterprises must register under MSME Registration.

The deadline for registering under MSME Registration Portal to the existing enterprise is 31 March 2021.

Documents Required For MSME Registration

The MSME registration process can be done online and is paperless.

An MSME registration does not require documentation or proof.

Registration will only be possible if you have the Aadhaar number.

PAN & GST-linked details on investments and turnover of companies will automatically be pulled from Government databases.

Starting on 01.04.2021, it is mandatory to have a PAN and GST number.

What happens if there is a discrepancy in MSME Registration in India?

If there is any discrepancy or complaint, the General Manager at the District Industries Centre in the District concerned shall conduct an inquiry to verify the details of MSME Registration submitted by the enterprise.

Then, send the matter along with any necessary remarks to the Director or Commissioner or Industry Secret concerned of the State Government. After issuing a notice and allowing the enterprise to present its case, the Ministry of Micro, Small or Medium Enterprises, Government of India may amend the details or recommend cancellation of the MSME Registration Certificate.

What are the Benefits of MSME Registration in India?

After registering a business and obtaining MSME registration Online, one will enjoy many benefits. MSME Registration is easy, and one doesn't need to deal with the paperwork. These are the top benefits.

  • MSME registration in India helps in getting government tenders
  • The MSME makes bank loans more affordable as the interest rates are much lower than regular loans (up to 1.5%).
  • MSME has a variety of tax rebates.
  • It is easy to obtain approvals, licenses, and registrations regardless of your business field. Businesses registered under MSME will be given a higher priority for certification and government licenses.
  • They have easy credit access at lower interest rates
  • Register MSMEs receive tariff subsidies and tax and capital subsidies
  • Registering helps to reduce the cost of getting a license or setting up an industry. Many concessions and rebates can be obtained.