{"id":38912,"date":"2021-12-24T10:55:32","date_gmt":"2021-12-24T05:25:32","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=38912"},"modified":"2025-01-02T17:49:29","modified_gmt":"2025-01-02T12:19:29","slug":"msme-registration-for-traders-explained","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/msme-registration-for-traders-explained\/","title":{"rendered":"MSME registration for Traders: Explained"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Udyam Registration, broadly known as MSME registration is now\navailable for traders. This clarification has already been shared with public\ncouple of months back. &nbsp;If you are\nengaged with trading activities (retail or wholesale) then you can opt for this\nregistration and avail all the benefits as available to other registered\nentities.&nbsp; This write-up intends to\ndisclose all the detail regarding MSME registration for traders. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/msme-registration-for-traders-explained\/#MSME_registration_for_traders_Announcement_date\" >MSME registration for traders: Announcement date<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/msme-registration-for-traders-explained\/#Impact_on_smaller_wholesaler_and_Retailer\" >Impact on smaller wholesaler and Retailer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/msme-registration-for-traders-explained\/#Benefits_under_MSME_Registration\" >Benefits under\nMSME Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/msme-registration-for-traders-explained\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"MSME_registration_for_traders_Announcement_date\"><\/span>MSME registration for traders: Announcement date<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>On July 2, 2021, the\nGOI included wholesale and retail traders under the MSME classification, making\nthem eligible for priority sector lending offered by banks and other\ninstitutions as per RBI\u2019s norms.&nbsp; &nbsp;&nbsp;<\/p>\n\n\n\n<p>The beneficiary\nsegments of this announcement would be retail and wholesale trade and repair of\nfour-wheelers and motorcycles, wholesale trade except of four-wheelers and\ntwo-wheelers and retail of four-wheelers and two-wheelers<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_smaller_wholesaler_and_Retailer\"><\/span>Impact on smaller wholesaler and Retailer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The decision of providing MSME registration for traders has ensured a positive impact on the smaller retailers as well as wholesalers with turnover up to Rs 250 crore in availing prompt credit as part of various schemes released under <em><strong>Atamnirbhar Bharat<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Atmanirbhar_Bharat\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>.\u201d<\/p>\n\n\n\n<p>According to the RBI circular released in the month of July,\nenterprises with Udyog Aadhaar Memorandum under aforesaid three NIC codes are\nnow permitted to migrate to Udyam Registration Portal. <\/p>\n\n\n\n<p>UAM refers to a one page application form for registration which\nentails a self-declaration format which allows MSME to certify its existence,\ndetails regarding bank account, aadhaar details of the promoter and other\nmandatory details. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_under_MSME_Registration\"><\/span>Benefits under\nMSME Registration <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Udyam registration, formerly known as <a href=\"https:\/\/corpbiz.io\/msme-registration\" title=\"MSME Registration\"><strong>MSME Registration<\/strong><\/a> renders following benefits to the registered businesses: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Availability\nof Collateral Free bank loans <\/h3>\n\n\n\n<p>The GOI has ensured the availability of colletral-free loan for the\nsmall and micro-business sectors. This would allow small businesses to stop wondering\naround traditional institutions that excels on stringent loan disbursement\npolicies. <\/p>\n\n\n\n<p>The trust known as Credit Guarantee Trust Fund Scheme was launched\nby the GOI,&nbsp; Small Industries Development\nBank Of India &amp; the Ministry of MSME to ensure this scheme is deployed for\nall financially aggrieved enterprises. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Cost\nRelaxation on Patent Registration<\/h3>\n\n\n\n<p>Under the prevailing laws, MSMEs registered entities stand eligible\nfor 50% subsidy on their patent registration fees. This would allow small\nbusinesses to keep innovating the new projects and technologies.&nbsp; To become eligible for this subsidy, the\nentity needs to furnish a prescribed application from to the concerned\nministries. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Overdraft Interest\nRate Exemption<\/h3>\n\n\n\n<p>MSME-registered entities can avail benefit of 1 per cent on the Over Draft in a scheme that varies bank-wise. This would empower the small entities to address unexpected financial crisis with ease. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Industrial\nPromotion Subsidy Eligibility<\/h3>\n\n\n\n<p>Businesses under the MSME registration would stand eligible for\nsubsides relating to Industrial Promotion as provided by the GOI. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Coverage\nagainst Deferred payment <\/h3>\n\n\n\n<p>The risk of delayed payments is quite prominent in the MSME sector. Small businesses often found helpless as they failed to recover full payment from the vendors which eventually lead to supply chain disruption and poor financial performance.\u00a0 MSME registration holders can effectively address this loophole as they are under the protection of the government that seeks to penalise defaulters in such a case. <\/p>\n\n\n\n<p>As per the Supreme court judgement, individual or entity having business affair with MSME are mandated to make the payment within 15 days or agreed date from the date of business transaction. Any delay in this regard would compel the defaulter to make payment along with the interest. The rate of interest would be charged as per the RBI\u2019s norms. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Concessions on\nelectricity bills<\/h3>\n\n\n\n<p>All MSME-registered entities are eligible to avail concessions on\ntheir electric bill. This allows business to scale-up the production rate and\nsecure more orders from clients without worrying about capital expenditure on\ncosts like maintenance and electricity. To avail such a benefit, the concerned\nMSME needs to furnish a prescribed application form to the state electricity\ndepartment along with the registration certificate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">ISO\nCertification Charges Reimbursement<\/h3>\n\n\n\n<p>Any MSME-registered entity can claim claim reimbursement of the expenses made to secure the <a href=\"https:\/\/corpbiz.io\/iso-registration\" title=\"ISO certification\"><strong>ISO certification<\/strong><\/a>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Ministry facilitating MSME registration for traders would provide great deal of advantage to thousands of retails and wholesale \u2013based businesses across India. Since MSME registration aims at rendering various growth-driven schemes and boost business growth, traders and wholesalers would definitely finds it productive to avail the same.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-the-procedure-of-msme-registration-online\/\">MSME Registration \u2013 Know the Entire Procedure <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Udyam Registration, broadly known as MSME registration is now available for traders. This clarification has already been shared with public couple of months back. &nbsp;If you are engaged with trading activities (retail or wholesale) then you can opt for this registration and avail all the benefits as available to other registered entities.&nbsp; This write-up intends [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":38923,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[2059],"acf":{"service_id":"71"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":11757,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/38912"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=38912"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/38912\/revisions"}],"predecessor-version":[{"id":68124,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/38912\/revisions\/68124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/38923"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=38912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=38912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=38912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}