Partnership firm comes under the ambit of Partnership Act, 1932. The partnership also regulated by the norms of the Indian Contract Act, where the former act is silent. The partnership is a structure that primarily benefits businesses with moderate management size and a smaller footprint. Therefore, these firms often have tough times propelling business activities due to the shortage of funds and other resources. Indian government do take necessary steps to revive their existing situation by introducing different scheme every now and then. MSME registration is one such government initiative that aims at helping these entities via a wide array of schemes and seamless funding. In this write-up, you will learn how to avail of MSME registration for Partnership firm.
- MSME (Ministry of Micro, Small and Medium Enterprises) is a government-backed institution that underpins rules, norms, and regulations for industries operating in the MSME sector.
- Typical services provided by MSME includes the facilitation of collateral-free loan, Quality & technology up-gradation support to small businesses, managerial & entrepreneurial development of SMEs via incubator and creating awareness regarding IPRs.
- MSME ministry seeks to empower small and medium-sized businesses via strings of growth-oriented schemes.
- MSME registration is broadly known as Udyog Aadhaar Registration.
- MSME classification revolves around Composite Criteria, as illustrated below in the table.
Read our article:Procedure to Avail MSME Registration Certificate in India
Composite Criteria: Annual Turnover & Investment in Plant & Machinery/equipment
Manufacturing Enterprises & Enterprises rendering Services
Investment in Plant & Machinery or Equipment:
Not higher than INR 1 crore & yearly turnover; not more than INR 5 crore
Investment in Plant & Machinery or Equipment:
Not higher than INR 10 crore & yearly turnover ; not more than INR 50 crore
Investment in Plant and Machinery or Equipment:
Not higher than INR 50 crore & yearly turnover ; not more than INR 250 crore
An Overview on Udyog Aadhaar Registration
Recently, to render much-needed support to the MSME sector, the GOI had initiated the Udyog Aadhaar Registration (UAM) process. But, presently, the Udyog Aadhaar Registration (UAM) is migrated to Udyam Registration.
- The MSME’s operating across this country has to visit the Udyam portal to obtain the Udyam Registration.
- Previously, if you intended to commence a business and get MSME registration, you needed to address heaps of paperwork. You needed to file different forms such as Entrepreneur Memorandum-I & Entrepreneur Memorandum-II (EM-II).
- The Udyog Aadhar Registration was formerly recognized as the MSME or SSI registration. Industries under Udyog Aadhar registration become eligible to access different government schemes.
- At present, the industries under Udyog Aadhaar Registration have to migrate to Udyam Registration to get access to benefits provided to MSME by 31.12.2021.
- If the entrepreneur fails to migrate to Udyam Registration, then their registration shall not stand invalid & they need to register again for availing available benefits under the MSME ministry.
What is the UAM (Udyog Aadhaar Memorandum)?
Udyog Aadhaar Memorandum, aka UAM, refers to a registration form wherein the small-scale entities certify their existence & facilitates requested information. After submitting the said application, the portal generates an acknowledgement slip, which will be routed to the applicant’s email id. The said slip entails a unique UAN (Udyog Aadhaar Number).
How MSME registration ensures growth for small businesses?
MSME Registration is not a mandatory certification, but it is certainly important from a growth standpoint.
Small businesses are not that financially stable, unlike a bigger corporations. They hardly have access to sources that facilitate easy funding for propelling business activities. Also, such firms aren’t good at securing government-backed orders. This is where MSME registration comes in so handy. Once you registered under MSME certification, you become eligible to access the following benefits:
- Access to collateral-free loans and at a lower rate of interest
- Access to fiscal backup for taking part in foreign expos
- Exclusive access to government-backed subsidies
- Open access to micro-business loans & other related schemes.
- Access to government-oriented tenders
Therefore, entities having MSME registration can;
- Expect visible growth in a prompt timeframe owing to uninterrupted access to government orders.
- Expand their footprint beyond the existing market.
- Strengthen existing facilities by procuring better machinery and equipment.
- Mitigate the hassle of identifying a reliable source of funding.
Details to be provided for MSME registration for Partnership Firm
Procedure to Avail MSME Registration for Partnership Firm
- The small business owners are required to fill a one-page e-form either offline or online. For web-based registration, head over to the official portal of MSME.
- If someone intends to register for more than one industry, then they are required to choose separate registration.
- In this form, the business owner has to self-certify its existence, business activity, bank-related details, ownership & employment details & other imperative information.
- MSME certification process seeks no registration fees.
- After facilitating the required details, the portal will generate and share the registration number with the applicant on the registered email ID.
Key points relating to MSME registration for Partnership firm
- A permanent certification no will be granted to the application after a successful registration.
- After completion of the certification process, the authority will grant the certificate electronically.
- This certification shall entail a dynamic QR Code that permits the user to get prompt access to the portal.
- There is no need for periodic renewal for MSME registration.
- For hassle-free processing of the application, you can also visit reputed third-party firms like CorpBiz.
MSME registration is a government initiative that aims at incentivizing small companies. Apart from ensuring the availability of collateral-free loans, MSME registration also provides businesses with an opportunity to access government-backed tenders. MSME registration for partnership firm ensures improved stability for the firm owing to availability of the benefits is offer. All in all, MSME registration seems to be a winning proposition for small and medium-sized enterprises seeking substantial backup both in terms of money and business opportunities.
Read our article:How MSME Registration Can Ensure Business Growth?