Stages in setting up of MSME14/09/2022 0 By indiafreenotes
MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s. MSME registration helps these industries to obtain the various benefits provided by the government to MSMEs.
Even if the company is in the manufacturing line or the service line, MSME registration for both these industry sectors can be obtained as per the MSME Act. The MSME registration is not yet made mandatory by the Government of India but it is beneficial to get one’s business registered under this because it provides a lot of benefits in terms of taxation, setting up the business, credit facilities, loans etc.
The MSME Act became operational in 2006. It aims to promote, facilitate and develop the competitiveness of micro, small and medium enterprises in India.
MSME Online Registration Process on Udyam
MSME registration is completely online. MSME online registration is to be done in the government portal of udyamregistration.gov.in. The registration of MSMEs can be done under the following two categories in the portal:
- For New Entrepreneurs who are not Registered yet as MSME or those with EM-II
- For those having registration as UAM and for those already having registration as UAM through Assisted filing.
For New Entrepreneurs who are not Registered yet as MSME or those with EM-II
New entrepreneurs and entrepreneurs having EM-II registration need to click the button “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” shown on the home page for registering MSME. New registration of MSME is done by entering the Aadhaar card number and PAN number.
When clicked on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” button on the homepage of the government portal, it opens the page for registration and asks to enter the Aadhaar number and the name of the entrepreneur. After entering these details, “Validate and Generate OTP Button” is to be clicked. Once, this button is clicked and OTP is received and entered, the PAN Verification page opens.
Registration for Entrepreneurs Already Having UAM
For those already having registration as UAM, they need to click the button “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” shown on the home page of the government portal. This will open a page where Udyog Aadhaar Number is to be entered and an OTP option should be selected.
The options provided are to obtain OTP on mobile as filled in UAM or obtain OTP on email as filled UAM. After choosing the OTP Options, “Validate and Generate OTP” is to be clicked. After entering OTP, registration details are to be filled on the MSME registration form and Udyam registration will be complete.
Documents Required for MSME Registration
Aadhaar Card and PAN Card are the only documents required for MSME registration. MSME registration is fully online and no proof of documents is required. PAN and GST linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases. The Udyam Registration Portal is fully integrated with Income Tax and GSTIN systems.
GST is not compulsory for enterprises that do not require a GST registration under the GST law. However, the enterprises that need to compulsorily obtain GST registration under the GST regime need to have GST registration for obtaining Udyam Registration.
Those who have UAM registration or any other registration issued by any authority under the Ministry of MSME, will have to re-register themselves in the Udyam Registration Portal by clicking on the “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II”.
The enterprises having UAM registration need to migrate to Udyam Registration by 30/06/2022. If the entrepreneurs having UAM registration do not migrate to Udyam Registration by 30/06/2022, the UAM registration will be invalid and they will not be able to receive the benefits provided to the MSMEs.
MSME Registration Fees
The enterprises having UAM registration need to migrate to Udyam Registration by 30/06/2022. If the entrepreneurs having UAM registration did not migrate to Udyam Registration by 30/06/2022, the UAM registration is invalid and they will not be able to receive the benefits provided to the MSMEs. They will have to re-register themselves for Udyam registration to obtain MSME benefits.
MSME Registration Certificate
After submitting the MSME registration form online, a message of successful registration with a reference number will appear. The Ministry of MSME will issue the Udyam Registration certificate or MSME certificate to the email ID of the entrepreneur after verification of the registration form submitted on the portal.
The Ministry will issue the MSME certificate after a few days from the submission of the registration form. The MSME registration certificate validity is for a lifetime. Thus, it requires no renewal.
How to Get MSME Certificate Online
To get MSME Certificate Online entrepreneur needs to download the MSME certificate online by visiting the Udyam Registration portal. The process to get the MSME registration certificate online is as follows:
- On the homepage of the portal, the entrepreneurs have to click on the ‘Print/Verify’ tab and click on the ‘Print Udyam Certificate’ option.
- The next page will open where the entrepreneurs have to enter the Udyam Registration Number, mobile number, choose the OTP option and click on the ‘Validate and Generate OTP’ button.
- Enter the OTP received on the mobile number or email ID and click on the ‘Validate OTP and Print’ button.