MSME stands for Micro, Small, and Medium Enterprises. Many enterprises fall under this category. These enterprises form the backbone of the Country's Economy and push forward the Nation's economic growth.
Seeing its importance, the Government of India provides several benefits to these Enterprises. However, they must register under the MSMED Act (Micro, Small, and Medium Enterprises Development Act)).
The RBI in 2020 mandates all MSME Enterprises to obtain the UDYOG registration certificate. Every Lender to the MSMEs must ask for their UDYOG registration certificate.
Udyog Memorandum and Udyog Aadhaar Memorandum of the MSMEs obtained till June 30, 2020, shall remain valid till March 31, 2021. All the registered MSMEs with validity till June 30, 2020, must file for the new MSME Udyam Registration before the financial closing of 2019.
Some of the benefits of MSME registration under the provision of law are as follows:
1. Collateral Free Bank Loans
The Indian Government has made collateral-free loans available to MSME businesses. This program offers financial security to small businesses. Any new or old business can claim the benefits and for extra benefit the Government of India launched SIDBI and MSME to ensure that the Credit Guarantee Scheme is implemented properly.
2. Patent Registration Subsidiary
The MSMEs which are registered with the MSME ministry have a benefit to get 50% subsidiary patent registration. This step encourages the small businesses and firms to work on new projects and innovate new products and technology. Avail the benefit by submitting an application to the respective ministry.
3. Protection on Delayed Payments
The MSMEs are facing an issue of delayed payment and it disturbs the entire business because of a lack of payment. So, the Supreme Court has mandated that any buyer who purchases goods and services from the MSME should pay the complete payment within the 15 days of purchasing the goods and services.
If the buyer delays the payment by more than 45 days then they have to pay the interest as discussed with the MSME on the amount. The interest rate can be the three times which is notified by the Reserve Bank of India.
4. Reimbursement of ISO Certification Charges
To obtain the ISO certification, all the expenses that are incurred by Micro, Small and Medium Enterprises will be reimbursed to the entrepreneur. So, this motivates the respective business to get the ISO certification for their business, and to export high quality products abroad.
5. Fewer Electricity Bills
The registered MSMEs have a benefit to get the concession on the electricity bills. This will help the businesses to increase the production without worrying about the capital expenditure such as electricity bill, and other maintenance charges. MSME can avail the benefits by submitting the copy of certificate of registration to the electricity department.
The Ministry of MSMEs is the regulatory body for issuing MSME certificates to businesses. The Union Government also authorizes the office of MSME's Development Commissioner to the Ministry's Additional Secretary.
The Government has also authorized certain bodies to look after the development of the various MSMEs in their sector. The Khadi and Village Industries Commission is commissioned to look after the activities related to Khadi and Village Industries nationwide. Coir Board looks into the activities of the Coir Producing Industry, and the National Small Industries Corporation Limited promotes the activities related to Micro, Small, and Medium Enterprises developments in India.
What are the functions of the Ministry (MSME REGISTRATION)?
Apart from looking after the formation of MSMEs, the Ministry also takes prudence in handling all the below activities:
The Ministry of MSMEs offers MSME certificates to certain small and medium-sized businesses to promote the development of the MSME sector in every state and district of India. Setting up MSMEs boosts the Country's GDP growth and creates a revenue-generating infrastructure in the remotest parts of India. Some of the functions of the M/o MSMEs are discussed below:
MSME Registration Eligibility Criteria: Only service providers and product manufacturers can obtain MSME Registration. Following is the classification of Micro, Small, and Medium Enterprises:
Documents Required for MSME Registration in India
The following documents are required for registering an MSME in India:
1. Aadhar Card
For Company, LLP, Cooperative Society, Trust or a Society, the Aadhar number of organization or authorized signatory such as Director must be entered into the registration form.
2. PAN Card
3. GST Identification Number (GSTIN)
Required if the enterprise is required to be registered under the GST Law).
There are 4 Steps that must be completed by individuals to obtain an MSME Certificate
To that end, fill out our form and request MSME registration. In this form, you will fill your contact details and your name, and our experts will get back to you.
Once you contact us and give us a go to complete the registration, we will begin preparing and gathering the required documents.
Once all the documents have been accumulated, we will file the MSME application form and submit it to the MSME registrar.
Once the Registrar approves the MSM registration application, we will forward you your certificate via email or courier.
We provide end-to-end Assistance to get you MSME Registration.
Thus, if you want to start an MSME, reach out to Registrationwala.
Q. How to proceed for Trademark Registration for MSME?
A. Any registered MSME can apply for trademark registration. They can apply for the logo with the regional office of the Trademark Authority of India.
Q. What does the Ministry issue the MSME compliance?
A. Every MSME loan registration must file its annual compliance with the Ministry within the stipulated time frame.
Q. What is UDYOG Aadhar MSME registration?
A. Udyog Aadhar is a Unique Identification Number issued to Micro, Small and Medium Enterprises (MSMEs).
Q. Can we avail of MSME Registration in Bangalore?
A. Yes, the MSME registration is purely an online process. You can apply for registration from any part of the country.
Q. What is the MSME registration process for a Private Limited Company?
A. The MSME registration process is similar for all the business type models. Private Limited Company can apply for the MSME registration in a regular manner, but they must check their eligibility for the MSME registration.
Q. What is the eligibility for MSME registration?
A. To check the eligibility for businesses applying for the MSME registration, you can refer to the eligibility criteria section of this page.
Q. Is MSME registration for companies possible?
A. Yes. Any business model that lies in the range of being qualified as an MSME can apply for MSME registration.
Q. Is MSME registration free?
A. Yes. MSME registration is a zero-cost registration.
Q. Where can I conduct an MSME search by company name?
A. You can hire an MSME expert such as the Registrationwala to conduct a name search on your chosen MSME name.
Q. When did the MSME UDYOG registration become mandatory?
A. The UDYOG Aadhaar MSME registration was made mandatory by the Government from July 1, 2020.
Q. What is the MSME registration number format?
A. It is a 12-digit code, like Aadhar No., issued by the M/o MSME.
Q. What is the procedure for the MSME address change?
A. For the updation of such details, you must connect with the MSME experts at the Registrationwala.
Q. Where can I access data of companies registered under MSME?
A. You can check the registered MSMEs list on the MSME website.
Q. What is the MSME SSI Registration?
A. SSI MSME Registration is the Small Scale Industry MSME Registration gaining which the business becomes eligible for schemes and subsidies by the Government.