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MSME REGISTRATION
"GST registration is essential for legal business operations and unlocking tax benefits."
Enquiry for MSME Registration
MSME LICENSE
Alright, so MSME registration is pretty much like getting a stamp of recognition for your Micro, Small, or Medium Enterprise in a country like India. It's like your business's way of getting its official membership card, you know? Once you're registered, your business can enjoy a ton of benefits, like eligibility for government schemes, easier access to loans, or even some cool tax rebates. It's not mandatory, but it's super helpful! You go through this process via the official government portals, and the whole idea is to boost your business growth and legitimacy. Plus, it's all the more satisfying when you know you're not missing out on any of those goodies that come with state reports and assistance programs. It makes life a bit easier for a business owner, keeping you in the loop about resources that could seriously help scale your business dreams. Basically, think of it as gearing up your business with some neat advantages that can keep those entrepreneurial wheels spinning smoothly!
Types of MSME registration
1. Micro Enterprises – An enterprise is micro if its investment in Plant & Machinery or equipment is under Rs. 1 crore and turnover does not exceed Rs. 5 crore.
2. Small Enterprises - An enterprise is small if its investment in plant and machinery or equipment does not exceed Rs. 10 crore, and its turnover does not exceed Rs. 50 crore.
3. Medium Enterprises – An enterprise is medium if its investment in Plant & Machinery or equipment does not exceed Rs. 50 crore, and its turnover does not exceed Rs. 250 crore.
Eligibility for MSME Registration
• Sole Proprietors: Individuals operating their businesses on their own.
• Partnership Firms: A business with more than one owner (partner).
• Limited Liability Partnerships (LLPs): Businesses are registered as LLPs.
• A Private Limited Company: that meets the investment and turnover limits.
• Public Limited Companies: A public limited company can be an MSME if the limits on investment and turnover allow it.
• Cooperatives and Trusts: The same entities can be MSMEs if they meet the conditions.
Benefits of MSME Registration
1. Access to government schemes and subsidies.
2. MSMEs can access various government schemes, aid, and subsidies. They are designed to promote their growth and sustainability.
3. The government can usually provide aid. This may include capital grants, interest rate relief, and other financial benefits.
4. Ease of Getting Loans.
5. Registered MSMEs can get faster, cheaper loans and aid from banks and other lenders.
6. MSMEs can use reduced-fee schemes to get patents, trademarks, and designs.
7. Tax Benefits.
8. Registered MSMEs can enjoy tax breaks and incentives. These are in government policies.
9. Companies can use it to claim excise relief, income tax relief, and other tax breaks.
10. Protection against Delayed Payments.
What is the MSME registration process?
Step 1: Please visit the UAM portal and complete the form.
Step 2: Enter the Aadhaar number and name.
Step 3: Confirm and generate the OTP.
Step 4: Fill in PAN details.
Step 5:Fill out the form for numbers 5–24.
Step 6: Enter the OTP and verification code to submit the form.
Step 7: You will receive a registration number.
Step 8: Wait 2-3 days for approval.
Step 9: Get the MSME certificate by email.
How do I check the MSME registration status?
1. Visit the Udyam registration portal.
2. Select 'Print/Verify' and then 'Verify Udyam Registration Number'.
3. Input the "Reference Number," captcha code, and click on the "Verify” button.
Registration for Entrepreneurs Already Having UAM
UAM-registered users must click the "For those having UAM registration" or "For those who already have registration as UAM through Assisted Filing" button on the government portal's home page. This will launch a page where you will key in Udyog's Aadhaar Number and select an OTP button.
The choices made are to receive OTP by SMS as entered UAM (i.e., mobile OTP) or to receive OTP by email as entered UAM (i.e., email OTP). Next, you must press the "Confirm and Generate OTP" button. After entering the OTP, provide the MSME form to complete Udyam registration.
Role of MSMEs in India
1. Job Generation: After agriculture, MSMEs are India's biggest job creators. They work for millions in the formal and informal sectors. Their goal is to reduce poverty and develop rural areas.
2. Contribution to GDP: MSMEs contribute around 30% to India's GDP. They are important in many industries, such as manufacturing, retail, and agriculture.
3. MSMEs (Micro, Small, and Medium Enterprises) promote industrialization in rural and semi-urban areas: They do this by creating localized production and small-scale industries.
4. Contribution to Exports: MSMEs are vital to India's exports of goods and services. They are key to the textile, handicraft, leather, and food industries.
5. Innovation and Entrepreneurship: MSMEs drive entrepreneurship, creativity, and innovation. They let new businesses and ideas emerge. This drives new products, processes, and services.
6. Support for Large Industries: MSMEs are auxiliary units to big firms. They provide inputs, such as raw materials, components, and services.
7. MSMEs can help reduce income inequality: They can create a strong labor market in rural and poor areas.
8. Promoting Sustainable Development: Many MSMEs adopt eco-friendly practices. They make green products and use sustainable production methods.
9. Boosting Rural Economy: Rural MSMEs focus on local crafts, organic farming, and agro-processing. This boosts the rural economy.
10. Flexibility and Resilience: MSMEs usually adapt better to market changes and economic shifts.
- FAQ
1. How many days does it take to get an MSME registration certificate?
After MSME registration, it takes 1-2 days to get the certificate. The system emails the MSME Registration Certificate to the entrepreneur.
2. Is MSME registration and Udyog Aadhaar the same?
No. Udyog Aadhaar registration is a government scheme. It issues a 12-digit registration number to SMEs. The MSME registration has taken the place of the Udyog Aadhaar registration. All MSMEs must have a 19-digit MSME registration to use government facilities.
3. How do I cancel my MSME registration?
After you submit the MSME application, you cannot withdraw it. You will receive the MSME Registration Certificate in 2-4 days after you apply online.
4. Is MSME registration mandatory?
No. It is not required that small, medium, and micro enterprises register with MSME.
5. Can I get MSME registration for a partnership firm?
Yes. As a partnership firm, we meet the MSME investment and turnover thresholds. So, we can apply for MSME registration.
6. Is it necessary to have an Aadhaar card to register as a Udyam during the Udyam registration process?
Yes, an Aadhaar card is mandatory for obtaining Udyam registration. In case an applicant is not the owner, the Aadhaar card of the spouse and the director must be mandatory.
7.What is the validity of the MSME Registration Certificate/Udyam Registration Certificate?
The Udyam/MSME Registration Certificate does not have an expiry date. If the entity is ethical and financially sound, the certificate has no end.
8. Is MSME registration for traders valid?
Yes. The MSME registration before targeted only the manufacturing or service sectors. In July 2021, the national government declared the trade sector as MSMEs. Traders can apply for MSME registration for a wholesale or retail business. This excludes motor vehicles and motorcycles.
9.Is the MSME registration online free?
Yes. MSME registration on the Udyam Portal is free. But professional fees will be charged.
10. How to check MSME registration by name?
You cannot verify the MSME registration number using just the name. But it is possible to recover your MSME registration number by the process hereunder:
1. Please visit the Udyam Registration Portal.
2. Click on the “Forgot Udyam/UAM No. option found under the “Print/Verify” section on the homepage.
3. Please select the registration option.
4. Choose the OTP option.
5. Enter the mobile/email address.
6. Click on the ‘Confirm & Generate OTP’ button.
7. Please enter the OTP. The MSME registration number will be displayed.