MSME Registration and the procedure to obtain the MSME Certificate for Free

Small-scale enterprises are critical to every country’s economic development. The government of India has introduced a number of initiatives to assist small and medium-sized enterprises in sustaining and growing. To take advantage of any of these advantageous programs, you must first register as an MSME. MSME registration is sometimes referred to as Udyog Aadhaar registration or SSI registration. MSME is an abbreviation for Micro, Small, and Medium Enterprises. Micro, Small, and Medium Enterprises are categorized into one category based on investment and annual turnover criteria. The government does not currently require MSME registration, yet it is beneficial to businesses in a variety of ways.

Meaning of MSME

The word “MSME” refers to businesses that are extremely tiny, small, or medium-sized. The Indian government formally recognized micro, small, and medium-sized enterprises (MSME) with the passing of MSMED (the MSMED Act, 2006). According to the statute, MSMEs are businesses that process, manufacture, and store products and commodities.

The Benefits of MSME Registration

The following are the benefits of MSME registration:

• Under the credit guarantee fund system for micro and small businesses, you can obtain collateral-free loans from banks (CGS)
• Some goods have been designated for production solely by small-scale businesses.
• Once you have obtained the MSME certificate for your microenterprise, obtaining permits, registrations, and approvals becomes considerably easier. The ability to exhibit your MSME certificate when submitting these applications will expedite the process.
• Participating in international trade fairs, exhibits, and buyer-seller meetings earns you preferential treatment. You may also host international seminars and conferences that are beneficial to the MSME industry.
• Many things are cheaper if you have an MSME registration: barcode registration, NSIC performance and credit ratings, industrial promotion subsidy (IPS) subsidy, ISO certification, power bill, and patent registration.
• Banks charge a lower loan rate for MSME registered firms than the standard interest rate.
• The CLCSS scheme, which gives a 15% capital subsidy up to 15 lakhs for the acquisition of equipment and machinery, was launched to encourage technological advancement among smaller companies.
• The Ministry of Micro, Small, and Medium Enterprises provides the following incentives to a microenterprise when applying for a government tender:-  Tender sets can be distributed for free,  they are not required to pay earnest money, and the security deposit is waived up to a specific amount.

The Act also includes numerous more advantages, which are established through annual budgets.

Who is eligible to apply for Udyam Registration?

Udyam Registration is available to anybody who wants to start a micro, small, or medium-sized business.

Proprietorships, Hindu Undivided Families (HUF), Partnership Firms, One Person Companies, Private Limited Companies, Limited Companies, Producer Companies, Limited Liability Partnerships, any association of persons, co-operative societies, or any other undertaking can apply for MSME Udyam Registration in India.

The Importance of MSME Registration

Micro, small, and medium-sized enterprises (MSME) constitute the backbone of the economy in emerging countries such as India. To put it another way, as these businesses develop, so does the nation’s economy. The MSME Act, 2006 allows registration whether the business is in the manufacturing or service sectors. Given the importance of MSMEs to the Indian economy, the government provides a variety of benefits to MSME companies through MSME Registration.

Legal Window can provide you with all of the services you require under one roof, as well as all of the necessary registration and counseling for further compliance. Contact our team at 072407-51000 or admin@legalwindow.in for MSME Registration.

Registration of MSMEs

Micro, Small, and Medium Enterprises (MSME) are divided into two groups under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006.

Manufacturing Enterprises: Manufacturing Enterprises are those businesses that make or produce items. The Manufacturing Enterprise is characterized by the amount of money invested in plants and machinery.

Service Enterprises: These are businesses that provide or offer services and are identified by their investment in equipment.

Required Documents for MSME Registration

The following documents are required for MSME Registration:

• Individual/Authorized Signatory Adhaar Card
• Entity PAN Card
• GSTN, if applicable.
• Cheque Cancelled

MSME Registration Types: The categories of MSME registration are as follows:

MSME Provisional Registration: This is given to entities that have yet to begin operating. The MSME can do the following with provisional registration:

• Obtain lodging, land, and other necessities.
• Obtain critical clearances and NOCs
• Obtain permission from regulatory agencies such as the pollution control board and the labor department.
• Under priority sector lending, obtain term loans and operating capital from financial institutions and banks.

A PRC (provisional registration certificate) is issued to new businesses without a field investigation and is valid for 5 years.

Permanent MSME Registration: It is awarded to existing operational industrial units. MSMEs can take use of all available incentives.
The following requirements must be completed in order to get permanent registration:

• The unit has secured all necessary statutory and administrative permissions.
• The unit does not breach any rules or regulations.
• The value of the unit’s plant and machinery does not exceed the allowed limitations.
• There should be evidence that the firm is not owned, controlled or a subsidiary of another industry.

Udyam Registration Procedure (MSME): The procedure for MSME registration is as follows:

• Step 1: Complete the brief questionnaire supplied by our staff.
• Step 2: Attach all of the above-mentioned papers to the questionnaire.
• Step 3: We will proceed to register your entity with Udyam.
• Step 4: Once your company has been registered under the MSME Act, 2006, we will send you the registration certificate via email.

Certificate of Registration for Udyam

After completing the Udyam Registration process, a certificate will be provided online. This Udyam Registration Certificate will have a dynamic QR Code that will allow you to access information about the company.

• How to Download MSME Certificate For Free?: The Enterprise would gain MSME registration by an online application on the government portal https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm, and after successful registration, the enterprise would receive an MSME certificate from the Ministry of MSME, which would be valid for a lifetime.

• Simple Steps for Obtaining an MSME Certificate: MSME certificate is termed an Udyam/MSME/Udyog Aadhaar Certificate, and it may be readily acquired online MSME certificate free by following the procedures below:

• Step 1: Navigate to the Udyam site at http://udyamregistration.gov.in.
• Step 2: In the top right corner, select the print/verify option.
• Step 3: In the Print/Verify menu, select the “Print Udyam Certificate” sub-option.
• Step 4: On the Udyami Login with OTP Option, enter the required information.
  • Enter your 16-digit registered Udyam Registration Number in the format “UDYAM-XX-00-0000000” into input box 1.
  • Enter your 10-digit mobile number in box 2 as it appears in the Udyam Aadhaar application data.
• Step 5: To validate and generate an OTP, choose either OTP on mobile or OTP on email as specified in the application.
• Step 6: Enter the OTP acquired on the cellphone number or email address, then press verify OTP and Print.
• Step 7: Examine the Udyog Aadhaar Certificate Data on the Home Screen
• Step 8: To acquire a copy of the certificate, select either print or print with Annexure from the top center menu.

Only the MSME Certificate will be accessible for printing.
MSME Certificate with UAM Application (Udyam Aadhaar Memorandum Application) Print with Annexure Option.

Endnote

Through websites such as https://msmeregistrar.org/, which provide quick and easy online registration from the comfort of your own home. Online MSME registration using the aforementioned portals also saves time by eliminating the extra time necessary to register offline with government authorities and obtain a recognized MSME certificate.