What is MSME Registration?
The Micro, Small and Medium-sized Enterprises Development Act allows MSMEs in the manufacturing and service sectors to register as MSMEs or SSIs. It is not compulsory to register as an MSME. But, you should still register as it provides several projects benefits such as tax benefits and protection against non-payment.
Who is eligible for MSME Registration?
Only manufacturers, producers, and service providers must use the MSME tag and register under it. Any manufacturer or service provider who meets the eligibility requirements may use the MSMEs single window registration system to register. The revised eligibility requirements effective from July 1, 2020, are applicable for the three types of Enterprises. This includes Micro Enterprises with Investment up to Rs 1 crore and turnover up to Rs 5 crore, for Small Enterprises with Investment up to Rs 10 crore and turnover up to Rs 50 crore, for Medium Enterprises with investment up to Rs 50 crore and turnover up to Rs 250 crore. Any form of business entity may obtain Micro, Small & Medium Enterprises (MSME) registration or Udyog Aadhaar registration. This includes Partnership Firms, Private Limited Companies, Public Limited Companies, Limited Liability Partnerships, Hindu Undivided Families, Self-Help Groups Societies, Co-operative Societies, Trust Others.
Is Registration Compulsory for MSMEs?
Registration under the MSMED Act is not compulsory for MSMEs and Small Scale Industries (SSIs). But, it is always better to register, because a registered SSI or MSME gets a lot of benefits. The procedure for registering is completely online and is very simple. You require your entity’s name, Aadhaar number, bank account and PAN details. After you fill in your details, a reference number gets generated and you receive your certificate after verification of details.
MSME Registration Certificate
Once you are registered and the process of verification is complete, you will obtain an MSME registration certificate. This certificate is proof that your entity or company is now registered as an MSME. This MSME/SSI registration certificate is valid for your entire lifetime. If you want to get your registration cancelled, you would need to write an application to the nearest Udyog Aadhaar Registration Centre and specify the business and the reasons behind cancelling the registration.
Can an Individual Register for an MSME Registration?
Anyone who wants to start a micro, small, or medium business may use the Udyam Registration portal to fill out a self-declaration form with no need to upload any records, papers, certificates, or evidence. During MSME registration, business owners must provide correct personal information such as name, Aadhar, industry name, PAN, mobile number, and bank account details. Furthermore, for MSME registration, business owners are not expected to pay any fees. A permanent identification number, known as the Udyam Registration Number, will be given to the entity when it registers. On completion of the registration process, an e-certificate, also known as the Udhyam Registration certificate, will be issued.
Udyog Aadhaar Memorandum - Online Verification process helps individuals figure whether the MSME’s are registered. With the help of the 12-digit UAM number, verification is possible through the https://udyamregistration.gov.in/UA/UA_VerifyUAM.aspx link.
How do I check if a Company is MSME Registered?
MSME database is available on the website of Udyam registration. You can search if an entity is MSME registered or not by typing the name and product/activity of the MSME. The search yields result by activity/products manufactured. You can then further filter the search to find out of a specific company is MSME registered or not.
Difference between Udyog and MSME registration
Udyog Aadhar is a government registration mechanism that provides the company with a registration certificate and a unique number known as Udyog Aadhar number. This programme is aimed specifically at small and medium-sized businesses. Udyog Aadhar aims to provide companies with the most access to government programs possible. However, on the other hand, The MSMED Act promotes a variety of schemes, subsidies, and benefits to support MSMEs, which are the backbone of the Indian economy. The MSME registration process is required to reap the benefit from governmental schemes, state schemes, and public services, although it is not obligatory. Further, The Udyog Aadhaar Memorandum Scheme, which the central government introduced, allows entities with an Aadhaar number, which is mandatory for MSMEs, to take advantage of easily accessible loans, credit, and government subsidies.
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Why is MSME Registration Important?
MSME Registration is important because:
It identifies medium and small-scale industries and provides them with the assistance which they require to grow and develop.
It provides tax benefits to MSMEs and SSI.
It provides protection against non-payment of dues.
Even individuals and sole proprietorships can obtain an MSME/SSI Registration and hence, it formalizes the business activities being carried at micro, medium and small scale.
The inception of this sector distinguishes medium enterprises and attempts to combine the three levels of these businesses, namely micro, small, and medium. This structure establishes a legislative consultative process at the national level, with a balanced representation of all stakeholders, especially the three types of businesses, and a broad range of advisory functions. Also, With the help of a policy structure and efficient steps taken by the government, the development of MSMEs in the Indian economy has seen tremendous growth and will continue to flourish at this rate of progress.