What is MSME?
MSME stands for Micro, Small, and Medium Enterprises. They are also known as small-scale industries or SSIs. Registration can be done in accordance with the MSME Act, 2006, however, it is not compulsory. Registration does provide the company with many benefits in terms of taxation and credit, so it s recommended.
The classification of MSMEs are as follows (on the basis of investment and annual turnover) :
Manufacturing Enterprises and Enterprises rendering Services
Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore
Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore
Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore
Any proprietorship, Partnership, LLP or Company which satisfies above condition can get registered as MSME unit.
The entire MSME registration process can be carried out online a udyamregistration.gov.in
Registration can be done according to the following two classifications :
For New Entrepreneurs who are not Registered yet as MSME or those with EM-II
New entrepreneurs can click on the button 'For New Entrepreneurs who are not Registered yet as MSME or those with EM-II' which will lead them to a page whererin they will be asked to enter their Aadhar number and name. Once this is done, they will receive an OTP and upon entering that, the page asking for PAN details will open.
The user must then enter the type of organisation that they are registering and then enter their PAN details. The portal will then validate the PAN number. Once this is done, the Udyam registration form will appear where the user will have to enter details regarding the plant and industry along with their personal details.
Once this is done, the user can click the 'submit and get final OTP' button. Registration will be completed and a reference number will appear. After a few days, the user will get an Udyam Registration Certificate to show that the registration was successful.
Registration For Entrepreneurs Already Having UAM
For those already having UAM, they need to click on the option titled 'For those having registration as UAM' shown on the home page. The user will then be asked to enter their Aadhar number upon which an OTP will be generated. When the OTP is received, the user must enter the number and proceed to filling in their registration details on the form that will be provided.
The government has simplified the process of registration of MSMEs to the extent that only two documents are required - PAN Card and Aadhar Card.
Registration is also completely free as there is no fee charged.
MSME Registration Certificate
The MSME registration certificate will either be sent to the users email address or can be downloaded from the Udyam Registration Portal.
Benefits of MSME Registration :
While applying for Trade Mark Registration, there will be reduced Govt. fee for MSME registered units.
MSME unit can claim a 3 times the govt. security rate as interest on delayed payments made to them.
MSME unit has certain exemptions/non applicability of Accounting Standard.
Cheaper bank loans (around 1% - 1.5%)
Credit for MAT can be carried forward to 15 years instead of 10 years
Exemption scheme from Direct Taxes
ISO certification fee reimbursement
Electricity Bills concession
Government security deposit waiver is applicable which can be used when participating in e-tenders.
Under Insolvency and Bankruptcy code MSME unit has option for pre-packaged Insolvency.
MSMEs are eligible for priority sector lending from banks
The Udyam Registration will help the 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, etc.
For any further details please write to firstname.lastname@example.org