What are the pillars of economic growth in a developing country like India? The Micro, Small, and Medium Enterprises (MSME) sector, rightly termed as the “engine of growth for India” is one of the major business units that play a salient role in the development of the country. The Government of India, through various subsidies, incentives, schemes, and most importantly the MSMED, Act supports and promotes the MSME sector which is a primary contributor to industrial, manufacturing, and employment units of India.
To avail the privileges under the MSMED Act from the Government, getting an MSME registration or Udyog Aadhaar is important, which is an online process. This guide will broadly touch on the procedure and the benefits of MSME registration for trade and entrepreneurial development.
Why MMSE Registration Is Important
The micro, small, and medium enterprise sector contributes largely to the total industrial employment of India. About 50% of India’s total exports and 95% of all industrial units are bestowed by the MSME sector. The growth of these industries leads to the economic growth of our country and hence MMSE is regarded as the backbone of the Indian economy. However, not all businesses not fall under the category of MSME. To qualify as an MSME enterprise, it should hit the revenue criterion set by the government.
MSME's are categorized into two enterprises
They are defined according to the MSMED Act, also known as the Micro, Small, and Medium Enterprises Development Act of 2006 in terms of investment in plant and machinery.
In the MSME manufacturing sector:
According to the Act, if the investment is up to 25 lakhs, it is identified as a micro-enterprise. If the investment is between Rs. 25 lakh and 5 crores, it is a small enterprise, and if it is between 5 crores and 10 crores, then it is a medium enterprise.
In the service sector:
According to the Act, micro-enterprises are those with an investment of less than Rs. 10 lakh. In the case of small enterprises, the investment is between 10 lakhs and 2 crores, and for medium enterprises, it is between 2 crores and 5 crores.
Although India is facing a lot of problems in the infrastructure and market relations, this sector witnessed tremendous growth and survived most of the threats from both domestic and international markets. MSME registration renders monetary as well as non-monetary advantages associated with trade and entrepreneurial development.
How To Register Your MSME Online
You can register in MSME by simply visiting MSME Registration Website and filling the application form. msmeregistrar.org is a secure online portal that helps you in the MSME registration process. We provide all sorts of consultancy services to people who are not familiar with the online procedures. And yes, you can register offline too.
The documents required for the online MSME registration are
Industry name and address of the business
Bank account details
Bill copies (sales and purchase)
Copies of licenses
The documents should be self-certified. There is no limit to register for new or existing businesses. If you want to register in more than one industry, individual registration is possible on msmeregistrar.org
Follow the below steps to register online at msmeregistrar.org are
Fill the online form with relevant details
Use your e-Aadhar OTP for verification
Once you upload the form and documents, you would be getting your registration number
Once the application is approved, your business gets registered and the documents shall be sent to you
Within 1-2 working days, the valid MSME certificate will be issued which is for both manufacturing and service sector
There is a small MSME registration fee for the procedures. To apply for loans from banks, you can register temporarily and once you set out you can apply for a permanent license.
Benefits of MSME registration
MSME registration online is neither mandatory nor statutory. But, if you choose to register, it will help you greatly with the improvement and development of your business. The state and the central governments have conceptualized MSME to offer the best possible benefits to all types of enterprises. Any enterprise with an MSME-registered certificate becomes qualified to enjoy the benefits from various government departments and government-initiated schemes that are provided under the MSMED Act.
Following are some of the benefits of getting an MSME registration:
Easy accessibility of bank loans at lower rates of interest
To start their industry, many business owners find it very hard to secure a loan because of the absence of collateral security. An MSME registration helps you pass this. Due to the registration, banks are specifically instructed to provide loans at cheaper interest rates than usual even for regular loans. With your MSME certificate, you can reach several banking institutions for your financial needs.
Depending on long-term or short-term financing, the requirement of loans from banks may vary for different businesses. Under the directions issued by the Reserve Bank of India, banks provide certain earmarked funds that have to compulsorily be given to MSME businesses. An MSME Certificate lets you avail of this loan without any hassles.
The central as well state governments have given exclusive rights to the MSME sector to manufacture certain products so that the enterprises are not affected by the tough competition in the market. The central government, under the Government Store Purchase Program, has held the acquisition of more than 300 products solely from this area.
Market assistance from the government
Being categorized as an MSME enterprise gives you access to international platforms like exchange programs, trade-related events, exhibitions, craft fairs, etc. organized by the government and helps you nurture new business connections. The government further provides technical and tax support in the export of goods and services to MSME sectors.
For any developing or developed country, MSMEs are given every possible aid to help them sustain despite the economic conditions. If you want to enjoy the government schemes and benefits, you should register under MSME. Operate the enterprise efficiently, systematically maintain financial backing and let the world praise your success.
For more queries related to MSME - Micro, Small and Medium Enterprises, then feel free to get in touch with us just by filling up the form and our executive will call your through MSME helpline number.
Other Related Latest Post
Apply For Udyam Registration
Re register Under Udyam
Know About Your NIC Code
Udyam Registration Benefits
What is Udyog Aadhar Memorandum? Benefits, Documents, Registration Process
THIS WEBSITE IS A PROPERTY OF A CONSULTANCY FIRM, PROVIDING CONSULTANCY SERVICES.
WE EXPRESSIVELY DECLARE THAT WE ARE PRIVATE CONSULTANTS. WE HAVE NO RELATION OR WE DO NOT REPRESENT ANY GOVERNMENT OFFICIAL OR ANY GOVERNMENT DEPARTMENT