MSME Registration of Partnership Firm is a process that helps it get the official identity of a small business so that it can avail of the targeted MSME benefits offered by the Government. The process is extremely convenient and streamlined. The managing partner of the firm has to take the initiative and apply for registration on the Udyam Portal. Once registered, the MSME registration number will be assigned immediately, whereas the MSME Registration Certificate will be issued within a week.
MSME Registration allows a Partnership Firm to get several financial benefits like collateral-free loans, interest subvention, credit guarantees, rebates on IPR registration, and subsidies on utility bills. Moreover, banks and financial institutions prefer giving credit benefits to small firms due to their entrepreneurial drive and growth potential. MSME Registration strengthens this motive all the more. Let’s see how the MSME registration process enhances the future of a small Partnership Firm.
Eligibility Criteria For MSME Registration of Partnership Firm
Partnerships Firms are eligible for MSME Registration only if they do not exceed the prescribed investment and turnover limits. These limits indicate the overall turnover excluding the export turnover, and overall investment in plant, machinery, equipment, excluding those meant for their repair, maintenance, and installation. As per the revised classification of micro, small, and medium enterprise, the limits are mentioned on the following table.
| MSME Classification | Turnover Limits | Investment Limits |
|---|---|---|
|
Micro Enterprises |
Up to Rs.5 crores |
Up to Rs.1 crore |
|
Small Enterprises |
Up to Rs.50 crores |
Up to Rs.5 crores |
|
Medium Enterprises |
Up to Rs.250 crores |
Up to Rs. 10 crores |
Partnership Firm MSME Registration Process
The Partnership Firm Registration process involves registering on the Udyam Portal and filing the MSME Registration form online. The details in the form must be filled in correctly and verified using authentic documents which we will discuss later. Once all the details are filled out, the application is submitted on the portal free of cost. Within a week’s time, the firm receives an MSME Registration certificate in its name. Here’s the stepwise breakdown of the procedural steps:
1. Visit the online Udyam Portal https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm
2. Select the option “MSME Registration for New Entrepreneur”.
3. For registering on the website, submit the Adhar number and name of the firm’s managing partner. Aadhar Number will be used to generate an OTP on the managing-partner’s mobile number. Once the OTP is submitted, the applicant can access the MSME Registration form.
4. Select the Type of Organisation as “Partnership Firm”.
5. Enter and Validate the Firm’s PAN. PAN validation will automatically be done from the Income Tax database.
6. Continue further by selecting the ITR filing status of the Firm in the previous financial year. Also confirm the availability of GSTIN.
7. Enter the mobile number and email of the managing partner.
8. Enter the Social Category of the managing partner and specify other details like gender and specially-abled status.
9. Next, enter the firm’s name, as well as the name and address of its manufacturing plant. The option to add as many plants as the firm operates is available.
10. Enter other details like incorporation / registration status of the firm, status and date of business commencement, bank details, and the details of its business activity classified as per the NIC Code.
11. Enter the number of male, female, and other category employees.
12. Self-declare the turnover and investment details.
13. Confirm the last few details and then agree to the given declaration. Validate using OTP.
14. Within a week, the MSME Certificate of the Partnership Firm will be issued by the MSME Department.
Information Required for MSME Registration of Partnership Firm
MSME Registration for Partnership Firm does not require any document submission. However, to verify the details in the application, certain documents must be kept in handy. These include the ID proof of the managing partner, and other business associated documents of the firm. Here’s the complete list:
- Firm’s PAN
- Managing Partner’s Aadhaar, linked with the Registered Mobile Number
- GSTIN, if applicable
- Proof of Residence / Ownership at the Business Premises
- Blank Cheque to verify the firm’s bank account details,
- Partnership Deed, and Incorporation Certificate if the firm is registered by the registrar
How to Download / Print the MSME Certificate of the Company?
Downloading or Printing the MSME Registration Certificate provides evidence of the firm’s MSME Status. The process is quite simple. A soft copy of the Certificate can be downloaded from the Udyam Portal after submitting the MSME Registration number and mobile number of the managing partner. The detailed steps are mentioned below:
1. Go to the Udyam Portal and Click on the “Print” option. From the dropdown, click on “Print Udyam Certificate”.
2. Enter the Udyam Registration Number and the Mobile Number to generate OTP. Get OTP on the registered email or mobile number.
3. Finally, click on the “Print Certificate” option and download or print the MSME Certificate of the Partnership Firm.
MSME Registration of Partnership Firm is a simple online process where the managing partner is supposed to file the application on the Udyam Portal. However, at times he may face issues due to a lack of experience and expertise. It is here that our consultants will rescue and assist throughout the application filing process. Consult us now for more information!
FAQs
Q1: Is MSME Registration of Partnership Firm compulsory?
MSME Registration of Partnership Firm is optional. However, eligible firms must register as MSME to get exclusive financial benefits.
Q2: What is the validity of MSME Registration?
The validity of MSME registration is 1 year. To continue beyond this period, ITR filing status must be updated in the MSME Certificate.
Q3: Is MSME Registration of partnership firm possible without PAN?
No, MSME Registration of Partnership Firm is not possible without the firm’s PAN.
Q4: How long does it take for MSME registration of a Partnership Firm?
The MSME registration number of Partnership Firm is assigned immediately. The MSME Certificate gets issued within a week.
Q5: How can I get the MSME Certificate of my Partnership Firm?
You can download the MSME Certificate of your Partnership firm from the Udyam Portal, once it’s issued.
Related Articles:
- MSME Registration of a Wholly-Owned Subsidiary
- MSME Registration for Private Limited Company
- MSME Registration for Sole Proprietorship
- Can a Partnership Firm Undertake Udyam Registration?
- MSME New Definition & Revised Limits
- What are the Benefit of MSME Registration in India?
- Trademark Registration fee for Startups and MSMEs in India
I was impressed by how straightforward and user-friendly the online registration was.