The expansion of the burgeoning MSME sector across the globe is seen at the moment. This sector contributes significantly to the Gross Domestic Product (GDP) and socioeconomic development, with a CAGR of 18.5%.
The Ministry of MSME runs a number of initiatives to provide needed help to entrepreneurs, boosting the sector’s growth, and providing clear employment options. Regardless of whether you are beginning a new business or already have one, MSME/ Udyam Registration is required to get the most out of it.
What is MSME/Udyam?
Let’s go through the basics of MSME/ Udyam before we go into the registration process. Micro, Small, and Medium Enterprises (MSME) is the full version of Micro, Small, and Medium Enterprises. In other words, an enterprise can be classified according to its equipment, machinery, and investment cap.
The annual turnover of businesses was then included in the list of determinants under the ABA or Atma Nirbhar Bharat Abhiyan. If you have several MSMEs, you need to register each one separately and obtain the appropriate MSME certificates.
The interpretation of these categories, on the other hand, has ramifications. Any MSME business profit that exceeds the expenditure limit defined for its category (Micro/Small/Medium in the MSME complete form) is wiped out.
Benefits of MSME/ Udyam Registration
Loans and assistance are required for any firm, especially those in their early stages, in order for the owner to acquire the necessary resources and flourish. However, carrying a heavy load of EMIs and loans with high interest rates in the start of a firm is no easy task.
As a result, in order to aid in the upliftment of MSMEs, the Ministry of MSMEs offers a number of schemes to owners, which they can only access after registering. The following are the advantages you can get from the Government of India (GOI) once you have finished your MSME/udyam registration:
- Receive a tax exemption, i.e., income that is not subject to federal or state taxation.
- Minimum Alternate Tax can be extended for up to 15 years instead of the customary ten.
- Priority is given to individuals who have registered with the Ministry of MSMEs on licence applications and other matters.
- Take advantage of concessions, partial refunds, or rebates for the costs of establishing the industry or patent.
- It’s simple to get credit for your company.
- Take advantage of government-sponsored programmes such as the Prime Minister Employment Generation Programme (PMEGP), SFURTI, CGTMSE, and others.
- For government tenders, e-marketplaces, and other comparable portals, use the Udyam Registration Portal.
To enjoy the benefits of these attractive MSMEs perks, you must first complete your MSME registration.
Documents Required for Registration
Before you begin the registration procedure, make sure you have the necessary documents on hand:
- Proof of your industry’s address
- A copy of the purchase bill book as well as sales receipts
- Industrial License Bills and Receipts of Expenditure for Required Machinery and Equipment Copy the Aadhaar number and the IFSC code from your bank account.
- COde NIC
- Make use of data (only if it is applicable)
- Employees Number of Employees Date of Business Inception
- Required details of a partnership in the case of a partnership enterprise.
- GSTIN (GST Identification Number) certificate
- In the event of a registered partnership firm, a registration certificate is required, whereas in the case of an unregistered partnership firm, a partnership deed is required.
- Association Memorandum (MoA)
- Association Articles (ADA)
- Certificate of Incorporation (Certificate of Incorporation)
- The director authorised and signed a copy of the board resolution passed at the company meeting.
- A PAN card is recommended. There is, however, a way to register an MSME without a PAN.
You’re ready to submit your MSME application once you’ve gathered all of this documentation.
The Udyam Registration portal allows you to register online. Given the convenience and safety requirements provided by the COVID-19 pandemic, the latter seems more acceptable.
The portal allows both new and pre-registered businesses to register. To ensure a smooth and efficient MSME/udyam registration, follow the steps below, according to the category in which your business falls:
Also read: Udyam Registration Benefits
For New Entrepreneurs Who Have Not Yet Registered
- To register for Udyam, go to the Udyam Registration Portal.
- Select the relevant category of not being a registered MSME on the homepage.
- Fill in your Aadhaar number and name on the Registration Page that appears.
- Validate your entry to generate OTP.
- After entering the received OTP, the PAN Verification page appears.
If you do not have a PAN card, you must:
- Because you don’t have PAN, select “no” and then “Next.”
- Fill in the personal and professional information requested on the Udyam Registration Page.
- Select “Final Submit” from the drop-down menu.
- A registration number and a “Thank You” message would appear.
- To avoid your MSME registration being suspended, get your GSTIN and PAN updated on the platform as soon as possible.
However, if you have a PAN card:
- If you have a PAN card, however:
- The portal automatically collects and fills in all of the relevant information from the government database.
- Complete the required ITR information.
- Select “Validate PAN” from the drop-down menu.
- Fill in your personal and professional information.
- Send it in and wait for the OTP.
Once you have completed the MSME registration, an MSME certificate will be allotted to you. The MSME certificate acts as evidence of your registration and vital contribution to the nation’s economy.
Also, this becomes your golden ticket to avail of any schemes or aid by the government that requires valid documents as proof.
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