MSME Registration Services
Expert assistance, simplified process. MSME Udhyam registration made easy. Empower your business growth with C M Patel and company.
What is MSME Udyam registration?
MSME registration is also called Udyam registration. The entities that fulfil the MSME classification can apply for MSME registration from the government portal, the Udyam portal. The MSME registration is entirely online and can be obtained from the Udyam registration portal. It is not mandatory for MSMEs to obtain this registration, 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.
Key Advantages of MSME Registration in India include:
1. Collateral Free Loans
As mentioned earlier, obtaining loans is often a challenge for MSMEs. However, with MSME registration, banks and financial institutions are more likely to offer credit without requiring the MSME to pledge assets as security. This is because the government provides credit guarantee schemes to banks, making it less risky for them to lend to MSMEs. This benefit helps MSMEs access much-needed funds to grow and expand their business operations.
2. Overdraft Interest Subvention
MSMEs can avail the benefit of interest subvention or reduced interest rates on their overdraft facilities, up to a certain limit. The government provides interest subvention, meaning reduced interest rate to MSMEs who promptly repay their loans. The interest subvention makes it easier for MSMEs to manage their cash flow and reduces their financial burden, especially during challenging times.
3. Subsidy on Patent Registration
MSMEs can avail a 50% subsidy on the total cost of patent registration, which makes it more affordable for them to protect their inventions and innovations. Patent registration is crucial for MSMEs that invest heavily in research and development, as it helps them protect their intellectual property rights and prevent competitors from copying their ideas.
4. Industrial Promotion Subsidy
MSMEs can avail industrial promotion subsidies for purchasing plant and machinery, which helps them upgrade their technology and machinery. The subsidy provides financial assistance to MSMEs to improve their production processes, increase efficiency, and become more competitive.
5. Timely Payments by Buyers
MSMEs often face the problem of delayed payments by buyers, which affects their cash flow and financial stability. To address this issue, the government has launched the Samadhan portal, which enables MSMEs to file complaints against buyers who delay payments. This initiative ensures that MSMEs receive timely payments for their products and services, thereby improving their financial stability.
6. Free ISO Certification
ISO certification is essential for MSMEs to establish credibility and trust among their customers and suppliers. However, obtaining ISO certification can be costly, especially for smaller businesses. MSMEs can avail the benefit of free ISO certification, which provides them with financial assistance for obtaining the necessary certification. This benefit helps MSMEs improve their quality standards and become more competitive in the market.
MSME Registration Eligibility
All manufacturing, service industries, wholesale, and retail trade that fulfil the revised MSME classification criteria of annual turnover and investment can apply for MSME registration. Thus, the MSME registration eligibility depends on an entity’s annual turnover and investment. The following entities are eligible for MSME registration:
- Individuals, startups, business owners, and entrepreneurs
- Private and public limited companies
- Sole proprietorship
- Partnership firm
- Limited Liability Partnerships (LLPs)
- Self Help Groups (SHGs)
- Co-operative societies
- Trusts
Documents Required For MSME Registration
1. PAN Card
PAN is also required to deduct TDS and should be linked with your bank account for direct credit of income tax refund (if any). It is issued by the Income Tax Department, and a salaried employee can find the PAN number either on a PAN card, Form 26AS, Form 16, Form 12BB, etc.
2. Aadhaar Card
According to Section 139AA of the Income Tax Act, individuals need to provide his/her Aadhaar card details while filing the returns. If you do not have your Aadhaar card but have applied for the same, you must provide the enrolment ID in your IT returns. Linking PAN and Aadhar helps in verifying your income tax return online through an OTP.
3. Bank Account details
Disclosures of all active bank accounts are mandatory in the ITR. Bank account details like your bank name, account number, IFSC, and number of accounts you hold must be quoted in the income return. Also, one account shall be selected as primary to assist the Income Tax Department in refunding your tax refund by electronic transfer to such account. Bank details are used to check your income disclosures, high-volume transactions, etc. These details can be easily found in the bank passbooks, cheque book, statements, net banking account’s etc.
There are no MSME registration fees and it does not require proof of documents. PAN and GST-linked details on investment and turnover of enterprises will be taken automatically by the Udyam Registration Portal from the Government databases since the portal is integrated with Income Tax and GSTIN systems.
GST registration is not compulsory for enterprises that do not require a GST registration. However, enterprises that mandatorily need to obtain GST registration under the GST law, must enter their GSTIN for obtaining the MSME Registration or Udyam Registration.