MSME Udyam Registration is necessary for eligible businesses to take advantage of several benefits, concessions in trademark filing, and incentives. Register your company, LLP, as an MSME now under the MSMED Act 2006.
We are a professional consulting firm specialising in company registration, taxation, accounting, payroll, compliance, and intellectual property rights (IPR) services to assist new and existing businesses in India. We provide our professional services at a reasonable fee, explaining the eligibility, process, and documents required for setting up and maintaining a business. We also prepare and file necessary applications with relevant government agencies such as the Registrar of Companies (ROC) and the Income Tax Department. We do not directly provide government documents or represent ourselves as a government agency.
Small business is the backbone of developing economies like India. These businesses operate on a smaller scale with limited capital. However, since they are mostly labour-intensive, their significance from the perspective of employment generation in the economy is quite huge. This is why the government aims to nudge the growth of the MSME industry in India consistently. The MSME stands for Micro, Small, and Medium Enterprises. These enterprises are categorised based on their plant and machinery or equipment investment and annual turnover.The definitions have been revised by the Government of India as of July 1, 2020. The new criteria are as follows:
| Enterprises Type | Investment in plant and machinery or equipment | urnover During the Previous FY |
|---|---|---|
| Micro Enterprises | Up to ₹1 crore | Up to ₹5 crore |
| Small Enterprises | Up to ₹10 crore | Up to ₹50 crore |
| Medium Enterprises | Up to ₹50 crore | Up to ₹250 crore |
The wholly owned subsidiary of a foreign company, or for that matter, any company in India that has received FDI, is treated at par with any other company in India. Therefore, if the twin criteria of investment in plant and If The machinery and annual turnover are net, the wholly-owned subsidiary company is very well covered under the definition of MSME and, therefore, can obtain MSME Udyam Registration.
The registration process for MSME Udyam Registration is fully digitalised and paperless. However, before you proceed to fill out the application form for the MSME Registration, you should prepare the following information so that it remains handy. The MSME is an Aadhar-based registration. Therefore, the aadhar number, which is linked with the mobile number of the owner or director of the business, is one of the key requirements.
Company or Unit NameEntity Type (Constitution)Date of Incorporation/EstablishmentPAN of EntityGST NumberBusiness AddressBank NameBank Account NumberIFSC CodeMajor Business ActivityNumber of EmployeesName of Authorised SignatoryAadhar NumberGenderCategorySpecially Abled (Divyang)Mobile NumberEmailContact us for a detailed Excel checklist that we have prepared so that you can capture all the information in one place, making it easy and error-free. Please note that well-prepared applicants will find it easy and simple to obtain an MSME registration. You can also visit https://udyamregistration.gov.in/ for the most updated information and guidance.
The MSME Registration process is quick, simple, and straightforward. Applicants can visit the online MSME / Udyam portal, choose the registration type and continue with the application process. Providing the correct details of the applicant organisation and its owner, director, partner, or authorised signatory is crucial for a successful and hassle-free registration. Additionally, the applicant must be ready with the entire MSME Registration documents list beforehand to avoid any chaos later.
The MSME Registration process is linked with the Income Tax Portal; hence, if the applicant filed its ITR during the previous financial year, the turnover data and investment in plant and machinery will be automatically filled out. If the applicant has not filed the ITR, then the MSME category (Micro, Small, or Medium) will be determined based on the turnover or investment details provided by the applicant on self-declaration. Therefore, the first step is to determine the MSME’s turnover and investment.
The next step is to visit https://udyamregistration.gov.in/ and click on the appropriate link for new enterprises that are not yet registered as MSMEs. On the next screen, the Aadhar and the Name of the Entrepreneur are to be filled out. The Aadhar number will be verified using an OTP sent to the linked mobile number. PAN, on the other hand, will be verified using the Income Tax / GST database integrated with the portal.
Next, the applicant has to fill in details about the business and the entrepreneur. These include the name, address, type, and nature of the business activity, bank details, employee details, and so on. The particulars must be correctly filled in the application form for error-free MSME registration. After filling in all the particulars, the form is then submitted using Aadhaar OTP-based authentication.
After the MSME Registration form is submitted, a thorough examination is carried out by the concerned authorities at the MSME Ministry. After a successful examination, the authorities will issue an MSME Registration Certificate With MSME Registration Number written on it.
MSME Registration for small businesses is a boon as it offers many benefits assisting their growth and development. Besides providing legitimate recognition to these businesses, MSME registration enables their enrollment in various favourable government schemes and initiatives. Most of these initiatives provide financial support to MSMEs during the initial stages of operation. A few prominent ones are mentioned below.
Collateral-free loansEasier access to creditSubsidised interest ratesConcessions on electricity billsIncome Tax/GST benefitsISO certification reimbursementStamp duty and registration fee waiverGovernment tenders PreferenceProtection against delayed paymentsMarketing assistanceTechnology upgradation schemeIncreased business opportunitiesNetworking opportunitiesAlong with the Udyam Registration, enterprises may register on the Government e-Marketplace (GeM), a portal for government-to-business transactions, and the SAMADHAN portal, which addresses issues related to delayed payments. Simultaneously, MSMEs can also onboard on the TReDS Platform, where the invoices of receivables are traded, through three available platforms: 1. www.invoicemart.com 2. www.m1xchange.com 3. www.rxil.in.
The Validity of the MSME Registration Certificate extends for a lifetime. There is no requirement for MSME Renewal at regular intervals. However, registered MSMEs must update the net turnover and investment limits every financial year on a self-declaration basis. The requirement for such an update is provided under the notification dated 26th July 2020. The annual update of the MSME Registration is necessary for the correct categorisation of the MSME, as the refreshed data from the Income Tax Portal concerning the turnover and the investment in plant and machinery is likely to change the type of the MSME.
