MSME is an abbreviated term of the phrase Micro, Small, and Medium Enterprises. MSME companies provide support to the economy of our country to a greater extend. The MSME sector contributes to 50% of India’s Total Exports, 95% of all industrial units of the country, 45% of Total Industrial Employment. The growth of a country heavily depends on its industrial sector. In this article, you will learn about what are MSME registration and its prevailing benefits.
What is MSME Registration Process?
This is the step by step guide to complete the MSME registration
One can opt for the MSME registration by visiting the online portal of udyamregistration.gov.in. As soon as the new users land on the home page, they need to click the option for “New Entrepreneurs” who are not registered yet as MSME”. These users require entering their Aadhaar card number to get started with the registration process. The inclusion of the PAN number is optional here.
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Registration via PAN Card
After selecting the option “New Entrepreneurs who are not registered yet as MSME”, the applicant will be routed to a new window where they need to enter their name as well as the Aadhaar number. Next, click on the “Validate and Generate OTP Button” to proceed further. After hitting the aforesaid option, the applicant will receive the OTP which they need to enter on the portal to complete the authentication process. Next, the portal guides the applicant to the PAN verification window. If the applicant holds the PAN card, the portal fetches the PAN information from the relevant government database to complete the filing formalities. However, the detail regarding the Income tax return needs to be filled by the applicant itself.
As soon as the applicant fills up the PAN card detail, a notification prompts on the screen stating “Udyam Registration has already been done through this PAN”. Upon receiving this message, the applicant requires to opt for the Validate PAN button located on the same page. Once this ends, the new window will prompt on the screen asking the user to enter their personal as well as business details.
After fulfilling the aforesaid prerequisite, choose the option “Submit and Get Final OTP”. The message of successful registration shall appear on the screen along with a reference number. Upon receiving the data, the authority conducts a thorough verification of the same and once they are satisfied, the Udyam Registration Certificate shall be issued.
Registration in the Absence of a PAN Card
In such an event, the applicant needs to choose an option “For New Entrepreneurs who are not Registered yet as MSME” on the home page of the portal. It commands the portal to open the registration page where an applicant requires filling up their name and their Aadhaar numbers.
Once done, the applicant will receive an OTP on their registered mobile number. The same OTP needs to be entered in the given field on the portal to reach the PAN Verification window.
Here the applicant needs to select “No” located under the heading “Do you have PAN?” followed by option “ Next”.
The Udyam Registration page shall open on the screen where an applicant is required to fill up the personal along with the business details.
Once done, the applicant needs to click the Final Submit option. The notification shall appear on the screen regarding the successful registration along with the registration number. After getting GSTIN and PAN, it requires to be submitted on the aforesaid portal within 01/January/2021 to avert the chances of the suspension of the registration.
Registration for Applicant Already Having UAM or EM-II
Those who have already obtained the registration as UAM or EM-II, need to select an option called “For those having registration as EM-II or UAM ” located on the portal’s home page. This will open a window where an applicant needs to fill up the Udyog Aadhaar Number and then select the OTP option for verification purposes.
The applicant has a dual option in this regard i.e. he/she can either choose the email or mobile option to receive the OTP. After opting for the OTP option, click “Validate and Generate OTP”. This commands the portal to send the OTP on the selected option. After filling up OTP in the required field, the applicant must enter the registration detail. This shall end the registration process.
Documents required for MSME registration
Benefits of MSME Registration
- Entities under MSME Registration have wider access to credit provided by the reputed financial institutions[1]. The rate of interest for MSME registered companies fall in the range of 1 to 1.5% which is considerably lower than regular bank loans.
- MSME registered entities are eligible to carry forward the credit for minimum alternate tax for up to fifteen years.
- MSME registered entities can rejoice rebates and concessions in the event when the cost of setting up the companies reduces.
- MSME registration helps the enterprise to gain access to government tender as the Udyam Registration Portal is synched with the Government driven portal that gives access to e-tender and marketplace.
Conclusion
MSME registration offers tons of benefits that include access to government tenders, ease of availing financial credit, and relaxation in terms of income tax. Resources and schemes are abundant under the MSME registration hence it becomes important for the small business to take advantage of it to ensure seamless growth.
These are the reasons which make the MSME registration an obvious choice for the business owners who have issues in scaling their business. Hopefully, by now you have learned everything about what is MSME registration. Do not hesitate to get in touch with CorpBiz’s professional just in case if you need to fulfill the registration prerequisites without any technical or other obstacles.
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