Advantages of MSME Registration\
Below are few of the advantages of MSME Registration:
• Because the interest rate is relatively low, about 1 to 1.5 percent, bank loans become cheaper as a result of MSME registration. These loans have much lower interest rates than traditional loans.
• Instead of ten years, minimum alternative tax (MAT) credits can now be carried forward for up to 15 years.
• Once registered, the cost of acquiring a patent or starting a business is reduced thanks to a variety of reductions and concessions.
• Because the Udyam Registration Portal is integrated with the Government e-Marketplace and numerous other State Government websites that offer easy access to their marketplaces and e-tenders, MSME registration makes it easier to receive government tenders.
• There is a One-Time Settlement Fee for delinquent MSME payments.
• The Udyam Registration will assist MSMEs in taking advantage of government initiatives such as the Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, and Payment Delay Protection, among others.
• Banks are willing to lend to MSMEs as a priority sector.
• MSMEs are eligible for a government security deposit waiver, which is beneficial when competing in e-tenders.
• In a single Registration, any number of activities, including service, manufacturing, or both, can be added or described.
• Subsidy for barcode registration.
• Scheme to exclude people from paying direct taxes.
• Reimbursement of ISO certification fees
• Electricity bills are reduced.
• In international trade exhibitions, special consideration is given.
MSME Registration Process
MSME registration is entirely online. MSME online registration can be done through udyamregistration.gov.in, the government portal. MSMEs can register in the portal under one of the following two categories:
New entrepreneurs who have not yet been registered as an MSME or with EM-II, as well as those who have already been registered as a UAM through Assisted Filing, are eligible for this programme.
• For the new entrepreneurs who haven’t yet been registered as an MSME.
On the front page, click the button "For New Entrepreneurs who are not yet Registered as MSME or those with EM-II" to register as an MSME. The Aadhaar card number and the PAN number are required for new MSME registration.
When the "For New Entrepreneurs who are not yet Registered as MSME or those with EM-II" button on the government portal's homepage is clicked, a registration page appears, asking for the entrepreneur's Aadhaar number and name. After providing these details, click the "Validate and Generate OTP Button." The PAN Verification page appears after this button is clicked and an OTP is received and submitted.
The entrepreneur must then click the "Validate PAN" button after entering the "Type of Organization" and the PAN Number. The portal obtains PAN information from government databases and verifies the entrepreneur's PAN number.
The Udyam Registration form will appear after the PAN has been verified, and the entrepreneurs must fill in their personal information as well as the details of the plant or enterprise.
After filling out the details on the MSME registration form, click the "Submit and Get Final OTP" button. The MSME online registration procedure will be completed, and you will receive a notice stating that your registration was successful, along with a reference number. Do remember to take a note of the reference number for future reference. The Udyam Registration Certificate is issued when the MSME registration form is verified, which may take a few days.
• Entrepreneurs who already have UAM can register
Those who have previously registered as UAM must click the button on the government portal's home page that says " "For those who have already registered as UAM" or "For those who have previously registered as UAM through Assisted Filing." They will be directed to a screen where you can input your Udyog Aadhaar number and select an OTP option.
You can either obtain an OTP on your phone as a filled-in UAM or get an OTP as a filled-in UAM through email. After selecting the OTP options, click "Validate and Generate OTP." After entering the OTP, fill out the MSME registration form with your information, and your Udyam registration will be complete.
Components present in the MSME application form:
Below are the components that are present in the application form for MSME Registration:
• Aadhar number
• Name of Entrepreneur as mentioned on the Aadhar card
• Social category which may be General, OBC, SC/ST
• Gender of the individual
• Physically Handicapped status
• Name of Enterprise
• Type of Organization which can be Proprietorship, Partnership Firm, Private or Public Limited Company and Limited Liability Partnership etc.
• PAN Card Details
• Location/Address of Plant
• Country, State, District, City, Tehsil, PIN Code
• Office Address
• Mobile Number and Email ID
• Date of Commencement of Business
• Bank account number and IFSC code details
• Business activity of an enterprise
• Additional detail of the enterprise
• Number of employees present
• Investment amount in Plant & Machinery
1. How do I verify the status of my MSME registration?
You will obtain a registration number after completing the registration process, which you will need for future reference. It usually takes 2-3 days for the total approval and registration procedure to be completed once you submit your form. You will receive your registration certificate through email.
2. How long is MSME certificate in effect?
The MSME certificate is valid for as long as the business is open for business. A provisional MSME certificate, on the other hand, is only valid for 5 years.
3. What is the total cost to register as an MSME?
The MSME registration process is absolutely costs some basic amount, unparalleled, and available online.
4. What are the different kinds of MSME?
MSMEs are divided into Manufacturing Enterprises and Service Enterprises under the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.
5. What industries are covered by MSME?
MSME regulates all manufacturing and service businesses.
6. What is the maximum turnover for an MSME?
* Micro-enterprise turnover limit: less than INR 5 crore * Small-enterprise turnover limit: INR 1 to 25 crore * Medium-enterprise turnover limit: INR 25 to 250 crore
7. Explain the difference between Udyog Aadhar and MSME/Udyog Registration?
Udyam Registration is a Ministry of Micro, Small and Medium Enterprises (MoMSMEs) approved by the Government of India MSME registration to start a business. MSME Aadhaar is for Small and Medium Enterprises provided by the Ministry of Small and Medium Enterprises (SMEs).
8. What are the chances of an online MSME application being rejected?
Low credit score, unpaid debts, loan defaults, low cash flow, absence of a business strategy, incomplete documentation, misleading information, and so on are all causes for MSME application rejection.
9. Are banks willing to lend to MSME borrowers without requiring collateral?
Yes, they can acquire collateral-free loans if they take out unsecured business loans and have a strong CIBIL score, as well as a good financial and loan payback history. The rest is determined by the bank's qualifying conditions that must be met by the applicant.
10. How long would it take for the MSME Certificate to be issued?
The MSME Certificate is issued within 1-2 working days of the application being submitted.