MSME registration is a program that enables micro, small and medium enterprises (MSMEs) to register with the government for tax benefits, loans, and other incentives.
This program is an important part of the Indian government’s strategy to promote entrepreneurship. It helps MSMEs become more competitive and profitable by providing them with financial assistance and other benefits.
What is MSME registration?
The success of a country’s economy is directly tied to the success of its small business sector.
India’s government has implemented several programs to assist micro, small, and medium-sized enterprises (SMEs) in thriving and expanding.
You must register as an MSME in order to participate in any of these programs. Udyog Aadhaar and Small and Medium Enterprise (MSME) Registration are other names for MSME registration.
MSME registration online
Apply for a loan online by visiting a lender’s website and filling out the application form completely and accurately. In the near future, a selected representative from the loan provider will get in touch with you to discuss the many possible outcomes for your loan and the solutions that might be the greatest fit for your needs.
Lex N Tax is a professional services firm offering a range of tax consultancy, accounting, and corporate secretarial services to businesses in India. We are committed to delivering high-quality professional services while maintaining a personal relationship with our clients.
We have worked with small and medium-sized enterprises (SMEs) from various industries, including construction, manufacturing, retail, healthcare, etc., helping them with their taxes as well as accounting. Our team comprises highly qualified professionals with years of experience working in the public and private sectors.
The current MSME classification used to be determined by the amount of money spent on fixed assets like machinery and equipment.
This means that small and medium-sized enterprises (SMEs) must restrict their spending in order to qualify for MSME advantages.
As a result of these restrictions, they lost motivation to expand their operations. There was also a long-standing call for the MSME categorization to be updated so that businesses may grow while still receiving MSME benefits.
The Aatmanirbhar Bharat Abhiyan (ABA) recently introduced composite investment and yearly turnover criteria to the government’s updated MSME classification.
Under the MSME definition, the division between the manufacturing and services industries was also eliminated. The following is the latest version of the MSME categorization, which takes into account investment and yearly turnover to determine whether or not a company qualifies as an MSME.
The original scope of MSME registration included just the production and service sectors.
However, the government announced in July 2021 that the wholesale and retail trade would be included in the MSME classification, meaning that businesses in the wholesale and retail trade, with the exception of the sale of motor vehicles and motorcycles, would be eligible to apply for MSME registration.
Therefore, manufacturing, service, wholesale, and retail businesses are welcome to apply for MSME status.
The entire registration process for MSME can be completed online. The official website for Micro, Small, and Medium-Sized Enterprise online registration is udyamregistration.gov.in. Here are the two portal sections where MSMEs can register:
New business owners not currently registered as an MSME or an EM-II.
Those who have already registered as UAM or who have registered as UAM via assisted filing.
For New Entrepreneurs who are not Registered
When registering an MSME, new business owners and those with an EM-II registration must select the option labeled “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II" on the main registration page.
To create a new MSME account, simply enter the owner’s Aadhaar and PAN details.
When a prospective business owner visits the government portal’s homepage and clicks the “For New Entrepreneurs, who are not Registered yet as MSME or those with EM-II" button, a registration page loads, requesting the prospective business owner’s name and Aadhaar number.
When finished, click the “Validate and Generate OTP Button." The PAN Verification page will load after you have clicked the button and supplied the OTP.
The business owner must click the “Validate PAN" button after providing the “Type of Organisation" and the PAN Number.
The site verifies the entrepreneur’s PAN by retrieving relevant information from official government databases.
The Udyam Registration form will appear after the PAN has been verified, and the business owner will need to provide their own information and information about their company.
The “Submit and Get Final OTP" button on the MSME registration form must be pressed once all required information has been entered.
After finishing the MSME online registration, a confirmation message and reference number will be displayed. Write down the number as a reference. The Udyam Registration Certificate is issued when the MSME registration form has been verified, which can take a few days.
Registration For Entrepreneurs Already Having UAM
On the government portal’s main page, users who have already registered as UAM will see two buttons labeled “For those having registration as UAM" and “For those having registration as UAM through Assisted filing."
This will take you to a new page where you can enter your Udyog Aadhaar Number and choose an OTP method.
You can choose to either receive the OTP through mobile as entered in the UAM or via email as entered in the UAM. Click “Validate and Generate OTP" after making your selections in the OTP Options. Registration for Udyam is complete once the OTP has been entered and the MSME registration form has been filled out.
For MSME registration, only your Aadhaar card and Permanent Account Number (PAN) card are needed. There are no paper forms to fill out for MSME registration.
The Udyam Registration Portal would automatically get business investment and revenue data connected to PAN and GST from government databases. Income Tax and the GSTIN systems are connected to the Udyam Registration Portal.
Companies that are exempt from GST registration are not required to collect or report GST. Udyam registration is not a prerequisite for GST registration, although GST registration is required for businesses that are required to register under the GST regime.
Those already registered with UAM or another body under the Ministry of MSME will need to re-register in Udyam by selecting “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II" on the registration portal’s main page.
Any businesses already registered under UAM must switch to Udyam Registration by June 30, 2022. UAM registrations will expire, and MSE benefits will be denied after June 30, 2022, unless business owners switch to Udyam Registration.
The MSME certificate can be obtained by visiting the Udyam Registration page, where the entrepreneur can download it. Following are the steps required to obtain your MSME registration certificate electronically:
The ‘Print Udyam Certificate’ option is accessible from the ‘Print/Verify’ tab on the portal’s main page.
When the following page loads, business owners need to input their Udyam Registration Number and cell phone number, select the OTP option, and hit the “Validate and Generate OTP" button.
Click the “Validate OTP and Print" option after entering the OTP sent to the mobile number or email address.
Certificate of Registration for Micro, Small, and Medium Enterprises will open and can be printed directly from the browser. Once an entrepreneur has submitted an MSME registration form, they will be granted a reference number.
An entrepreneur can receive their MSME registration number by going to the homepage, selecting the ‘Print/Verify’ button, and then clicking the ‘Verify Udyam Registration Number’ option.
Startups will be taken to a new page where they will be prompted to provide a reference number and a captcha code before clicking the “Verify" button. You will see the MSME’s information and registration number on the screen.
According to the Micro, Small, and Medium-Sized Enterprises Development (MSMED) Act, registered MSMEs are eligible for the following benefits:
Under the credit guarantee fund system for micro and small firms, you can acquire a loan from a bank without having to put up any security.
Products designated for production by small businesses only.
When you receive the MSME certificate, obtaining permits, registrations, and approvals for your microenterprise becomes considerably simpler. Having your MSME certificate on hand while filling out these applications will help move things along more quickly.
The benefits of attending international trade shows, expos, and meetings of buyers and sellers are highlighted.
Additionally, international seminars and conferences that serve the interests of the micro, small, and medium enterprise sector might be organized.
Subsidies are available for a variety of services when a business is registered as a micro, small, or medium enterprise (MSME), including barcode registration; NSIC performance and credit ratings; IPS subsidies; ISO certification; energy bill subsidies; patent registration; and more.
Banks offer preferential credit rates to businesses that qualify as micro, small, or medium-sized.
Micro-businesses can receive a capital subsidy of up to 15 lakhs Indian rupees (15%) to use toward the purchase of plant and machinery under the CLCSS scheme, which was created to encourage technological advancement in the sector.
When submitting a bid for a government contract, microenterprises are afforded the following privileges by the Ministry of Micro, Small, and Medium Enterprises:
Tender sets can be issued free of cost
They are exempted from paying the earnest money
Security deposit is waived up to a certain monetary limit.
The Act provides a wide range of additional advantages, some of which are introduced each year through appropriation bills.
We are a team of professional and experienced tax consultants who have served the industry for over 10 years.
We provide our clients with MSME registration services in Delhi and help them register their business with the government. Our team works closely with our clients to understand their requirements before offering any services to them.
We take care of all the legal formalities involved in registering your business with the government so that you don’t have to worry about anything else.
Why Choose Lex N Tax Associates
Lex N Tax Associates is the leading MSME registration services provider in India. We offer a one-stop solution for all your business-related needs.
Our team of experts is highly qualified, experienced, and skilled to offer you the best solution for your business needs. We take pride in offering our clients personalized services that are specifically designed for their business needs.
We have registered thousands of companies across India, including Mumbai, Delhi, Bangalore, Hyderabad, etc. Our clients include small businesses, startups, and big corporations from various industries such as construction, real estate, media & entertainment, and many more.
Lex N Tax Associates is one of the most trusted MSME registration service providers in India because we offer:
Innovative solutions to grow your business
Personalized advice to start or expand your business operations
Reliable tax advice on tax planning strategies
We also understand that getting registered with the government can be long, so we try our best to help you through this process as quickly as possible.