The full form of MSMEs is Micro, Small, and Medium Enterprises. MSME is controlled by the Ministry of Micro, Small and Medium Enterprises in India. MSME registration is mandatory, as it allows to avail of all the benefits from the various scheme initiated by the Government. The MSME enterprises contribute to 45% of the total employment of the country, 50% of the Total Exports of India and 95% of all the industrial units of the country, and more than 600 different types of products manufactured in the industries and all the related data provided on the website of MSME.
According to the MSMED Act of 2006, it is classified into two types which are as follows:
Manufacturing enterprises are engaged in the manufacturing and production of goods in the industry.
Service Enterprises are engaged in providing services or rendering.
Benefits of MSME Registration in India
Following are some essential benefits of MSME that you can avail of once you complete the registration process of MSME in India:
Several tax subsidies offered to the MSMEs that are registered.
MSME industries get easy access to credit.
Banks also provide the loan to the MSMEs is extremely cheaper because the interest rate is very less. The rate of interest on loans is much lower than the interest on regular loans.
Registered MSMEs are allowed credit for Minimum Alternate Tax (MAT) to be carried for the time (Up to 15 years).
All the businesses registered under MSMEs are given high preference for license and government certification.
There is One Time Settlement Fee for all the non-paid amounts of MSMEs.
Industries having MSME registration are qualified to get reimbursement of ISO Certification.
Concession in electricity bills.
Avail of credit guarantee schemes from the Government.
Bar code registration subsidy.
What are the crucial documents required for MSME Registration in India?
Following is the list of all the necessary documents required at the time of MSME Registration:
Aadhar card of the applicant.
PAN card.
Address of business.
Property paper.
Canceled Cheque.
Submit the copies of Sale or Purchase bills.
In the case of a Self-owned premise, submit property tax receipt, allotment letter, Lease Deed, etc.
In case of the rented premise, submit NOC (No Objection Certificate) from the landlord, latest utility bills, rent receipts, etc.
Partnership Deed.
Memorandum of Association (MOA) and Articles of Association (AOA) of the company.
Submit the copies of licenses and bills of machinery purchased.
Provide turnover details.
Investment details (Equipment or plant details).
NIC code.
Name of the enterprise.
Physical status of the applicant.
Category of the applicant (General, OBC, SC, or ST category).
Bring all the information related to employment, such as the total number of employees working in the company or organization.
The activity of the enterprise (between Service and Manufacturing).
Step by Step process of MSME Registration in Indian – Udyog Aadhar Registration
To complete the process of MSME Registration in India through the Udyog Aadhar portal, follow the steps as mentioned below:
Step 1: Visit the online portal of Udyog Aadhar Registration (UAM) for MSME Registration in India.
Step 2: After that, a new page will open on your window screen. Enter your 12-digit Aadhar Number and the Name of the entrepreneur.
Step 3: Once you enter your Aadhar number and name of the entrepreneur, then click on the “Validate & Generate OTP” button and enter the OTP for the verification. After the verification, you can fill the online form for registration.
Step 4: In the application form, you have to fill in all the following details:
Business owner’s name.
Applicant's category, i.e. General, OBC, SC, ST, and Others.
Details of PAN.
Complete detail of postal address i.e. PIN, district, state, Email Id, and Mobile number.
Details of previous registration of your business.
The commencement date of business.
Details of your Bank Account with the IFSC code.
Type of Organization – Manufacturing or Services.
Annual Turnover of the business.
NIC code.
DIC (District Industries Centre).
List of all workers employed.
Step 5: Once you enter all the above details, then click on submit to generate an OTP which will be sent to your email id which is mentioned by you in the registration form.
Step 6: Enter aadhar OTP received on mobile for the second time and then clicked on the "Final Submit" button.
Step 7: Once you complete the registration process, you will receive an acknowledgement number through email.
Step 8: Once the details you provided in the form are verified, the UAM number will be generated for your business, and you can use this UAM (Udyog Aadhar Memorandum) number to avail all the benefits for MSMEs. You can also register under MSME in India through an offline process.
How can you get MSME Registration without an Aadhar card?
It's necessary to have an Aadhar card to get MSME License. In case, if you do not have an Aadhar card, then the UAM registration shall be done by the DIC or MSME-DE for the enterprise. As an alternative for identification, the individual can also provide the documents as mentioned below:
Request a copy of Aadhar Enrollment.
Enrollment copy of Aadhar Card.
Voter Id, Passport, Driving License, Employee ID, PAN card, and Passbook.
How can you check the Application status of MSME Registration Online?
You can check the application status of the MSME registration online from the step mentioned below:
Step 1: First, visit the official portal of UAM, or you can click this link
Step 2: Once a new window will open, you have to enter your 12-digit UAM number and enter a captcha code shown in the image. You can check the image for the same as mentioned above.
Step 3: Once you enter the UAM number and captcha code, then you can click the "Verify" button to check the application status of MSME Registration online.
Steps to download Udyog Aadhar Registration or MSME Registration Certificate Online
If you want to download the registration certificate of MSME, then you have to follow the steps mentioned below:
Step 1: To print or download the registration certificate, you have to visit the official portal of UAM (Udyog Aadhar Memorandum).
Step 2: After that, you have to enter your 12 digit UAM number and mobile number as you can see in the image mentioned above.
Step 3: Once you enter the mobile number and UAM number, then you can download the registration certificate.
Conclusion
Now, the MSME has been accepted as the engine of economic growth. It has the power to develop the business and reach new heights with low investment requirements and operational flexibility. MSME registration is mandatory, as it allows to avail of all the benefits from the various scheme initiated by the government. It also contributed to the country's GDP.