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MSMEs are the growth accelerators of the Indian economy, serving as an engine of economic growth and supporting equitable development. Here are specific guidelines for registering as an MSME.
Micro, small, and medium-sized firms (MSMEs) may not have large turnovers, but their sheer numbers propel the Indian economy forward. MSMEs are classed according to their investments and annual turnover (see table below). To encourage more firms to enter the official sector, the Indian government made MSME registration portal essential.
Benefits of MSME Registration
Registering your business can provide various benefits. Some of these include:
Get bank loans at the lowest interest rates (about 1-1.5 percent lower) with ease.
Take advantage of tax savings by taking credit for MAT (minimal alternate tax) for up to 15 years.
Concessions and rebates on establishing an industry or obtaining patents
Reimburse the ISO certification fees.
Registered MSMEs gain preference in government tenders.
State governments promote MSMEs.
Take advantage of government policies such as Credit Linked Capital Subsidy policies and Credit Guarantee Schemes.
Obtain priority sector loans from banks.
Get a bar code registration subsidy.
Concession on MSME electricity bills, with special consideration for International Trade Fairs.
Learn how to register your MSME online, including the process for new and EM-II firms.
You can register your MSME via the Udyog Aadhaar Memorandum (UAM) portal.
How to Apply for MSME Udyam Registration Online:
Go to the MSME Udyam registration online portal.
For new or unregistered enterprises, go to the first link, “For new entrepreneurs who are not yet registered as MSME or those with EM-II”.
Submit your Aadhaar number and name.
Then choose the consent button and click the ‘Validate & Generate OTP’ button.
On the next screen, enter your PAN and organization type. If you do not have a PAN, choose the ‘No’ option.
Fill in the remaining fields on the form.
Enter the OTP you received To submit the form, enter your phone number and the verification code.
After successfully registering, you will see a “Thank You” message with your registration number.
It may take 2-3 days to receive clearance for your MSME registration. You will receive an email with a registration certificate after your application is approved.
MSME online registration process with UAM.
Visit the government website (UAM portal).
To access the migration form, UAM-registered enterprises can click on the link provided.
On the next page, input your Udyog Aadhaar number, choose an OTP option, and then click the ‘Validate & Generate OTP’ button.
Enter the OTP sent to your registered mobile number or email address.
Fill out the MSME Udyam registration form and submit it.
It may take 2-3 days to receive approval for your MSME registration migration. You will receive an email with a registration certificate after your application is approved.
Documents Required for MSME Registration
The documentation required for MSME registration are listed below:
- The basic business activity
- Please provide your Aadhar and PAN numbers.
- Business address and bank account number.
- COPIES OF bills and permits for purchased machinery
- Investment information (equipment/plant details)
- NIC 2-digit code
- Partnership deed (copy of sales/purchase bills)
- Turnover details (according to the new MSME definition)
You’ll need to reregister. Companies having UAM registration must finish their Udyam registration by June 30, 2022.
If an entrepreneur with a UAM registration does not convert to an Udyam registration by June 30, 2022, the UAM registration will be void, and you will be unable to take advantage of the benefits available to MSME.
MSME Udyam Registration Certificate.
When you submit the MSME registration form online, you will receive a successful registration notification along with a reference number. After verifying the registration form submitted on the internet, the Ministry of MSME will email the entrepreneur an Udyam or MSME certificate. MSME registration certificates are valid for life. Thus, there is no need to update.
MSME Registration Fees and Documents
The MSME registration process requires minimal documentation. All you need is your Aadhaar number. Details about your PAN- and GST-related investments and turnover will be automatically retrieved from government databases. You also do not have to pay any fees to register your MSME via the Udyam platform.
How to Download the MSME Registration Certificate
When your MSME is properly registered, you will be given a permanent registration number and an e-certificate. The MSME registration certificate does not require renewals because it is good for a lifetime unless terminated. It includes a dynamic QR code that connects to the Udyam portal, where you may view information about your company.
Check your inbox and spam folder to see if you got the certificate. However, if at any time you need to download the certificate, perform these steps:
Navigate to the Udyam Registration Portal.
Click the “Print/Verify” drop-down option in the top menu bar.
Click “Print Udyam Certificate“. If you have not previously logged in, this will take you to the login page.
Enter here.
Your Udyam registration and registered mobile phone numbers.
Select your desired option in the third section and click “Validate & Generate OTP”.
Enter the OPT you received in the next area, then click “Validate OTP and Login”.
Your Udyam Certificate will appear on the following page. You can download or print it from here.
Registering your MSME can help you take your business to new heights and contribute significantly to our country’s socioeconomic development by creating low-cost job opportunities and reducing regional economic imbalances through industrialization and income generation from rural areas.
Why does one need to register with Udyam?
Having an online Udyam Registration might bring various benefits to your organization—
After registering with Udyam, your company will be eligible for a number of benefits.
You can get collateral-free loans from banks.
Your business may possibly be eligible for National Small Industries Corporation assistance.
Take advantage of the excise exemption system, which will even compensate you for your ISO certification expenditures.
You can request a reduced interest rate on loans from NBFC banks.
With so many benefits, what’s preventing you from registering for Udyam? These simple benefits not only help your business expand, but they also save you a lot of money!
Conclusion:
Udyam Registration serves as a catalyst for the growth and development of MSMEs in India, offering a comprehensive suite of benefits and opportunities. From access to government schemes and subsidies to tax incentives and enhanced market visibility, Udyam Registration empowers MSMEs to realize their full potential and contribute to the country’s economic progress.
As India continues its journey towards becoming a global economic powerhouse, the role of MSMEs becomes increasingly significant. By leveraging the benefits of Udyam Registration, MSMEs can strengthen their competitive position, drive innovation, and create sustainable value for stakeholders.
