New MSME Registration Benefits For Small Scale Business

MSME is basically referred to as micro, small and medium enterprises. It is recognized as the most significant sector and the backbone of the Indian economy. MSME sector contributes to the total industrial employment of India. When there are growth and development in this industry, the economy also grows and progresses further. The MSME registration for companies of manufacturing and service is there through the MSME act implemented by the Indian government. The registration is not necessary but it provides benefit to get a business registered in terms of tax, setting up process, credit facility, loans facility, etc. This sector contributes about 50% of India’s total export and 95% of the industrial units of the country.

The MSME came into being in the month of October in 2006. It was established for promoting, facilitating, and developing the competition between micro, small and medium companies. MSME sector in India contributes to the manufacturing, exports, and employment units. MSME provides the development of small businesses and with it, the growth of the economy is there. It contributes to the socio-economic development and growth of the country. Not only are employment, job, work opportunities are developed, but there is also rural growth in the country. MSME's practices are straightforward, non-discriminatory, and objective.

Features Of MSME

MSME works for the welfare of artisans and workers by providing them with employment.

Provide credit limit to banks for support in funding.

Encourages the growth of entrepreneurship by providing some special training.

Supports the up-gradation of modern technology, development of infrastructure, and modernization of the sector.

Modernized testing facilities and quality certification services are being provided by these MSMEs.

Process of Registration of MSME

Step 1: Visit the msme registration portal

Step 2: Fill the MSME Registration Application form

Step 3: Pay the application fees for your application for Udyam registration

Step 4: The concerned representative will verify your MSME Registration Application

Step 5: In just 1-2 working hours you will get your MSME Registration certificate to your registered email address.

Note: You need to share the OTP with the representative for further process

Registration without a pan card is also possible by just entering the details and validating OTP provided.

Various Documents Required For MSME Registration

Aadhaar card

PAN Card

GSTIN Number

Some Benefits of MSME Registration for Small Scale Businesses

Bank loans are provided with collateral-free. This reflects the initiative for micro and small-scale companies. Both old and new enterprises can avail the benefit.

The subsidy is provided on patent registration of about 50%.

As a gain of 1 percent should be included as used in the scheme, the overdraft interest rate is exempted and varies from bank to bank.

Industrial promotion subsidy is provided to the enterprise registered under MSME.

Protection against delayed payments for micro, small enterprises by providing assistance by providing them with the right for a collection of interest on the payments which are sometimes delayed from the buyer.

Enterprises enrolled under the MSME Act could benefit from a reduction in electricity bills.

High preference is provided by the government in terms of license and certification.

One time settlement option is provided for the unpaid amount.

Tax exemption is provided under the MSME act.

Various MSME Schemes

Various schemes are launched by the government which includes-

Technology and quality up-gradation scheme for efficient energy technology in the manufacturing sector for reducing pollution and to adopt a clean environment mechanism.

Grievance monitor system -The scheme benefits the business owner’s complaints being listened to. The status of the complaint can be checked.

Incubation - This scheme assists in implementing new ideas, products, and other services. It provides financial help for the set up of business incubators. The scheme helps in the promotion of ideas, designs, and products.

Credit linked capital subsidy scheme - New technology is provided through this scheme and capital subsidy is also provided to the business for its up-gradation and have better means for doing their business. These subsidies can be directly provided by banks to the micro, small industries.

Zero defect scheme - In the scheme, the manufacturing of exported category goods is there. Tax rebates and concessions are provided on export goods.

Women entrepreneurship scheme - Women are encouraged and provided with capital, training, counseling, and various delivery techniques. It aims to encourage women to expand and to run businesses in a successful manner.

Many more schemes are launched by the government for providing support and help to the MSMEs. It is not necessary to register under it but it provides various benefits to micro and small-scale businesses.

Important Note:

The new process of MSME Registration is introduced by the Ministry of MSME. Udyog Aadhaar registration replaced in the name of Udyam Registration from 1st July 2020. The new process of Classification and Registration of enterprises was started on 1st July 2020. So now any business should undergo Udyam registration in order to register under the Ministry of MSME.

New Micro, Small, and Medium Enterprise Classification

The updated MSME classification as per the new defination based on the criteria of investment and turnover for both Manufacturing and service enterprises. Below is the table of new MSME classification.

Enterprise	Turnover	Investment
Revised MSME Classification
Micro	Not more than 5 Cr.	Not more than 1 Cr.
Small	Not more than 50 Cr.	Not more than 10 Cr.
Medium	Not more than 250 Cr.	Not more than 50 Cr.

The highlight of Udyam Registration

Udyam registration process is fully online, paperless, and based on self-declaration. No hardcopy documents or evidence are needed to be submitted for new MSME registration.

The business owner Adhaar number for registration will be required;

After identification, a registration number ie is Udyam Registration number (URN) will be indicated on the certificate;

Once the registration process is complete, Udyam Registration Certificate will be issued;

This credential would have a dynamic QR Code from which you can reach the web page on our Portal and business details;

No need for renewed registration for new MSME Udyam registration;

PAN & GST relevant account details on business spending and turnover will be automatically taken from the respective government databases;

The online infrastructure of the MSME Ministry will be fully compatible with the income tax and GSTIN schemes.

No organization should file more than one Udyam registration. However, any number of operations can be listed or applied to one Registration, like manufacturing or operation, or both;

The Facilitation Mechanism of the Government will support people in this process in the name of single window systems at Champions Control Rooms and DICs;

The Union Ministry, The Government of India has expressed and supports this procedure for business registration, as it is incredibly simple, smooth, and pleasant for entrepreneurs. The central government is focusing on the growth and making a digital India, in the Ease of Doing Business. Which will help business owners, in terms of reduction of time and prices for purchases. Entrepreneurs businesses will concentrate on their actual job and become competitive internationally.

Note: Previous MSME registration process-Udyog Adhaar (UAM) will be valid only till 31st March 2021. All existing MSME's will have to re-register themselves at Udyam Registration Portal.

Click here to Apply for Udyam Registration.

Who we are - udyogadharcertificate.in

We are professionals when coming to MSME registration online as we are private consultants helping small-scale-medium enterprises in legal registration works. Get our help for msme registration online and make the payment for the service.

We will assist you in each and every process of getting an MSME Registration Certificate. Here are the various MSME Registration Services we offer:

Udyam Registration

Update Udyog Aadhaar Registration Certificate

Update Udyam Registration Certificate

Registration of existing udyog Aadhaar

Print Udyog Aadhaar Certificate

Print Udyam Registration Certificate

Trace Udyam Registration Certificate

Trace Udyog Aadhaar Registration Certificate

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