The Union Cabinet headed by Prime Minister Narendra Modi has formally revised the MSME definitions. The investment and turnover figures were changed to larger values.
Documents required to register as MSME
- Aadhar number
- PAN number
- Address of the business
- Bank account number
- The basic business activity
- NIC 2 digit code
- Investment details (Plant/equipment details)
- Turnover details (as per new MSME definition)
- Partnership deed
- Sales and purchase bill copies
- Copies of licenses and bills of purchased machinery
How to Apply for MSME Registration on Udhyam Registration?
Businesses who want to avail benefits announced by the Government for MSMEs will need to register their business on the ‘Udyog Aadhaar Memorandum (UAM) portal’. The registration process is quite simple and free for every user.
Follow the below steps to register your business online:
- Visit the Udyam registration Portal where you will be required to fill a form.
- If you are registering your business as an MSME for the first time, click on the first link on the page.
- Enter the Aadhaar Number and Name and click on ‘Validate & Generate OTP’.
- Once verification is done, you will have to fill in the PAN details. You can select the No option if you don’t have a PAN card yet.
- Post this, you will have to fill the form having field numbers 5-24.
- At the end of the form, an OTP request will be sent to your phone again. Enter the OTP and verification code to submit the form successfully.
- After successful registration, a “Thank You” message will appear with a Registration Number. Keep that number handy for future reference.
- Once the application form is submitted, it can take 2-3 days for the approval and registration to complete.
- If the application gets approved, the registration will be done and the MSME certificate will be delivered to you via email.
Please note that the MSME registration on the government portal is free of cost.
How to register an MSME without Aadhaar Card?
First of all, the applicant who doesn’t have an Aadhaar card according to the section-3 act. Till the time the individual receives the Aadhaar, UAM registration shall be filed by the respective DIC or MSME-DE for the enterprise or business.
Meanwhile, the individual can provide the below documents as an alternative for identification.
- Aadhaar enrolment copy
- Aadhaar enrolment request copy
- Anyone of the following: Voter Id, passport, driving license, PAN card, employee ID, and bank passbook
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 the list 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
- Special consideration on International Trade fairs
- Bar code registration subsidy
- Support from your state government
Frequently asked questions
1. Can I register for MSME online?
Yes, businesses who want to avail the benefits announced by the government for MSMEs will need to register their business online on the ‘Udyog Aadhaar Memorandum (UAM) portal’. The registration process is simplified and free for every user.
2. How can I check my MSME registration?
Upon successful registration, you will receive a registration number that will be required for future reference. Once your form is submitted, it generally takes 2-3 days for the overall approval and registration process to complete. Your registration certificate will be sent to you via email.
3. What are the new criteria for MSME?
MSME qualification is nothing but the eligibility criteria for businesses to register themselves under the tag of MSME. Any business falling under eligibility criteria may register itself/himself under the single registration system for MSMEs.
4. Is the MSME certificate valid?
MSME certificate is valid till the time the business is operational. However, a provisional MSME certificate is valid only for 5 years.
5. What is the cost of MSME registration?
The MSME registration process is free of cost, completely peerless, and online.
6. What are the types of MSME?
According to the provisions of the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, MSMEs are classified into Manufacturing Enterprises and Service Enterprises.
7. Which industries come under MSME?
All the manufacturing and service industries are covered by MSME.
How do you benefit from MSME?
Hey Kani, you can read the details about MSMS here: https://razorpay.com/learn/new-msme-definition-turnover-2020/ Hope this helps!