MSME stands for Micro, Small and Medium Enterprises. In a developing country like India, MSME industries are the backbone of the economy. When these industries grow, the economy of the country grows as a whole and flourishes. These industries are also known as small-scale industries or SSI’s.
Even if the Company is in the manufacturing line or the service line, registrations for both these areas can be obtained through the MSME act. This registration is not yet made mandatory by the Government 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.
Benefits of MSME Registration
1). Due to the MSME Registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
2). It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
3). Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
4). MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace and various other State Government portals which give easy access to their marketplace and e-tenders.
5). There is a One Time Settlement Fee for non-paid amounts of MSME.
Document requried for MSME Registration
- In the case of a Proprietorship Firm, the Aadhar number of the proprietor is to be entered in the Udyam Registration form.
- In the case of a Partnership Firm, the Aadhar number of the managing partner is to be entered in the Udyam Registration form.
- In the case of a Hindu Undivided Family (HUF), the Aadhar number of the Karta is to be entered in the Udyam Registration form.
- In the case of a Company or Limited Liability Partnership or a Cooperative Society or a Society or a Trust, the Aadhar number of the organisation or authorised signatory is to be entered in the Udyam Registration form.
AADHAR CARD
PAN CARD
The above documents need not be uploaded but the Aadhar and PAN number of the entrepreneur is required to be entered in the registration form.