Overview of MSME Registration

The Ministry of Micro, Small and Medium Enterprises, broadly known as MSME, is the premier Government body that deals with the formulations and management of rules, guidelines, and laws pertaining to small scale industries in India. The MSME came to effect on October 02, 2006. It aims to incentivize, facilitate, and boost the competitiveness of MSMEs working pan India.

MSME, i.e. Micro, Small and Medium Enterprises, is considered as the backbone of the Indian Economy. The MSME sector encompasses a massive number of small scale industries under its belt, making it one of the prominent GDP contributors of India. MSME is a government-backed initiative that seeks to boost the growth of small scale industries operating in the organized and unorganized sectors.

What Do You Mean by MSME Classification?

Previously, the prevailing MSME Classification was based on the criteria of investment in production facility and machinery. So to access MSME benefits, the MSMEs have to confine their investment to the lower level, as shown below:

Previous MSME Classification

Standard Documents Needed for MSME Registration

PAN and Aadhaar cards are the only essential documents required for MSME registration. This registration is fully web-based, and no proof of documents is needed. GST and PAN linked particulars on annual turnover and enterprises' investment will be secured automatically by the portal from the government databases. 

How to Apply for MSME Registration on Udhyam Registration?

The Udyam Registration portal is a government-backed portal that is in sync with Income Tax and GSTIN systems. Acquiring GST registration is not a mandate for enterprises that fall outside the scope of GST law. But, the enterprises that fall under the GST regime need to secure GST registration to obtain Udyam Registration.

• The MSME registration can be secured by applying on the Udyam portal and the portal shall charge no fees for rendering such a registration. 
• After applying, a confirmation message shall appear on the computer screen enclosing the reference number of the said application.
• The MSME ministry shall grant the MSME certificate or Udyam Registration certificate to the applicant’s email id after completing the verification formalities. The MSME shall grant the MSME registration after a couple of days from the date of application submission. 
• The MSME certificate remains valid for a lifetime and seeks no renewal. 
• The entrepreneurs can download the MSME certificate from the respective account created on the Udhyam Registration portal. 

Points to Ponder:

• Those who possess UAM registration or any other registration accorded by any authority under the MSME must seek re-registration on the Udyam Registration Portal by selecting the option “For New Entrepreneurs who are not registered yet as MSME or those with EM-II”.
• The enterprises with UAM registration need to opt for Udyam Registration through the migration process by 31/12/2021.
• If the entrepreneurs fail to comply with the above condition, then the UAM registration shall be flagged invalid, and they will not receive any benefits under the MSME scheme.

Benefits offered by MSME Registration to the Small Scale Units

• MSME registration holders have access to cheaper loans with an interest rate as low as 1.5%. 
• Ensures credit relating to MAT, i.e. minimum alternate tax to be carried forward for up to five years instead of 10 years. 
• MSME registration ensures the availability of any rebates and concessions for the 
• MSME registration holders can avail concessions on patent registration. 
• MSME registration holders can use Udyam Registration Portal to get access to Government e-Marketplace and e-tenders.
• One Time Settlement Fee for MSMEs confronting payment issues with vendors. 
• The Udyam Registration shall aid the MSMEs in securing benefits of following government schemes.

1. Public Procurement Policy 
2. Credit Linked Capital Subsidy Scheme
3. Credit Guarantee Scheme

• Entities with MSME registration are eligible for priority sector lending from banks.
• MSMEs have access to the government security deposit waiver, which is beneficial while taking part in e-tenders.
• Ensures subsidy for Barcode registration
• Ensures Exemption on Direct taxes through different tax saving schemes
• Fees relaxation for ISO certification 
• Electricity bills concession.
• Ensure exposure to trade fairs conducted at the domestic and global level

Why Connect with Corpbiz Support for registration and licensing services?

Corpbiz is one of the most trustable platforms for government registration and licensing services. We ensure that our clients get top of the line services regardless of the quantum of compliances and rules set out under different Acts. 

Top reasons for choosing Corpbiz services

• Presence of highly experienced professional and field experts 
• Ability to simplify complicated pre-registration requirement for the sake of client’s understanding
• Proven track record of rendering flawless services to different clients 
• Ensure on-time delivery of government license and registration