What Is A MSME?

Micro, Small, and Medium Enterprises (MSME) was introduced by the Government of India in 2006 regulated by MSMED (Micro, Small, and Medium Enterprises Development) Act of 2006. According to this Act, MSMEs are the establishments involved in the process, production, and preservation of goods and commodities. The Government offers various subsidies and special benefits to the MSME’s as these are considered the backbone of the economy.

• Micro Enterprises with a paid-up capital of 10 lakhs 
• Small Scale Enterprises with a paid-up capital of 10 lakhs to 2 crores
• Medium Scale Enterprises with a paid-up capital of 2 crores to 5 crores.

List of Documents required for the Registration

• A copy of Aadhar number 
• A copy of PAN number
• GST number.
• Passport size photographs
• Address proof of the business
• Enterprise bank account number
• Details of basic business activity 
• 2-digit code of NIC 
• Investment details like the, plant/equipment details
• Turnover details of the enterprise as per new MSME definition
• Copies of sales and purchase bills
• licenses and bills copies of machinery purchased
   

What is the procedure for registration?

Businesses that desire to utilize benefits notified by the Government for Micro, Small, and Medium Enterprises need to register their business on the ‘Udyog Aadhaar Memorandum (UAM) portal’.

The registration procedure is simple and free of cost. 

below steps to need to be followed for registration online: 
 

1. The UAM portal has to be visited where the applicant has to fill a form.
2. The Aadhaar number and name have to be entered and the ‘Validate & Generate OTP’ option has to be chosen.
3. After the verification is done, the applicant has to fill in the PAN details or select ‘No option’ if the PAN card is not available yet.
4. Post filling the above details, the applicant has to fill the fields numbered 5-24 in the form.
5. At the end of the form, an OTP request will be generated to the applicant’s phone again. This OTP and verification code has to be entered and post which the form would be submitted successfully.
6. Post submission, a registration number would be generated, that has to be noted.
7. This form would be processed by the UAM, this would take 2-3 business days to process.
8. Once the form is verified and approved a certificate would be mailed to the registered mail Id of the applicant.
9. This Udyog Aadhaar Memorandum (UAM)registration shall be filed by the respective DIC or MSME-DE for the enterprise or business.

What are the advantages of registration?

1. Bank loans would be available at lowest interest rates 
2. Tax rebates for MSMEs credit for Minimum Alternate Tax (MAT) can be availed 
3. Credit for MSME’s is very easily available 
4. Rebates and concessions are available on patents and industry set-ups 
5. Special preference would be given by the government to MSMEs 
6. There are concessions available on electricity bills 
7. The government offers credit guarantee schemes 
8. Special concession is given in International Trade fairs
9. There’s a subsidy for bar code registration 
10. Various support facilities available from the respective state government
11. Exclusion from excise
12. Statutory help, like, the reservation and Interest on Delayed Payments Act.