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MSME stands for Small and Medium Enterprises. These are the backbone of developing countries that have emerging economies like India. When these industries grow, so does the entire economy of the country as a whole. They’re also known as small-scale industries or SSIs. MSME registration helps these industries reach the government’s various benefits to help them grow and flourish.
Although MSME registration is not yet mandatory in India, it can provide a lot of benefits for business owners. Registration allows you to take advantage of tax exemptions, setting up the business, credit facilities and loans. The MSME Act provides MSME registration to businesses in both the manufacturing and service sectors.
The MSME Act became reality in 2006 and seeks to promote, facilitate and develop the competitiveness of micro, small and medium enterprises in India.
MSME Online Registration Process on Udyam
Registering an MSME business is quick and easy. You’ll be able to do it quickly and easily on the government portal at udyamregistration.gov.in. There are two categories of registration available:
- For New Entrepreneurs who are not Registered yet as MSME or those with EM-II
- For those with both registration and company search as UAM and For those who are registered as a UAM through the assisted filing process
Details to be Mentioned in MSME Application Form
As an entrepreneur, there are certain details you’ll fill out when submitting the MSME application form:
- Aadhar number
- Name of entrepreneur as per Aadhar card
- Type of organisation (Proprietorship, partnership firm, private or public limited company, limited liability partnership, co-operative society, Hindu undivided family, self-help group, society or trust)
- PAN card
- Social category (General, OBC, SC/ST)
- Gender
- Name of enterprise
- Location of plant/unit
- Office address of the entreprise
- Date of commencement of business or incorporation or registration of enterprise
- Bank account number and IFSC code
- Business activity of an enterprise
- NIC code of the primary activity
- Number of employees
- Investment amount in plant and machinery (if there is no investment in plant and machinery, entrepreneurs can write it as zero)
- Turnover (if there is no turnover, entrepreneurs can write it as zero)
Benefits of MSME Registration for Small Scale Businesses
- Due to the MSME Registration, interest rates are at an all-time low. Typically, they’re around 1 to 1.5%, which is lower than what you might be used to. Not bad considering that’s a lot lower than most rates.
- The new MAT rules allow credit for minimum alternate tax to be carried forward up to 15 years instead of 10 years.
- One of the great things about registering your work is that many rebates and concessions are available with registered patents.
- MSME registration helps to acquire government tenders more easily because our website has been integrated with Udyam’s government e-Marketplace, as well as various other state government portals. This will give you easier access to buy and sell from governments.
- The Udyam registration process helps MSMEs in availing the benefits of government schemes such as Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Public Procurement Policy, Protection against delayed payments.
- You may include any number of activities, including service and manufacturing, in a single registration.
- Barcode registration subsidy.
- Exemption scheme from Direct taxes.
- ISO certification fees reimbursement.
- Electricity bills concession.
- Special consideration in International trade fairs.
Conclusion
The MSME sector is an important part of the Indian economy and offers a vast array of opportunities for entrepreneurs. With the right support, MSMEs can thrive and play a significant role in boosting economic growth. We hope this article has provided you with some useful information on what MSMEs are and how they can contribute to the development of the country.
