MSME Registration: Online Process, Fees, Documents Required & More

To encourage entrepreneurship, the government offers special benefits to small businesses in the form of subsidies and incentives. In addition, banks offer low-interest loans to help these businesses get started.

Small businesses must register under the Micro, Small, and Medium Enterprises (MSMEs) Act in order to take advantage of these benefits.

If a business is registered under the MSMEs Act, it can benefit from a variety of government programs and incentives, including lower interest rates on bank loans, tax breaks, preference in the procurement process, and access to various government schemes and incentives.

MSME Registration Process

MSME registration is not required by law. The MSME registration process in India, on the other hand, has been designed to provide maximum benefits to all types of businesses. After registration, any business is eligible to receive the benefits provided by the MSMED Act.

Some of the benefits provided by the Central Government include easier bank loan approval (priority sector lending), lower interest rates, an excise exemption scheme, exemption from certain tax taws, and statutory support.

The state governments and union territories have also put together their own package of MSMEs-friendly facilities and incentives. The state government provides MSMEs with benefits such as the development of specialized industrial estates, tax breaks, power tariff breaks, capital investment breaks, and other assistance.

Both the federal government and the state, whether by law or otherwise, target their incentives and support packages to units that have registered with them. Banking laws, excise laws, and direct tax laws have all included the term "MSME" in their exemption notifications.

As a result, the registration certificate issued by the registering authority is regarded as proof of MSME status and is required to avail of MSMEs' benefits.

MSME Classification

The Micro, Small, and Medium Enterprises (MSMEs) were classified solely on the basis of their investment under the MSME Act-2006. However, in 2020, Finance Minister Nirmala Sitharaman broadened this definition and introduced a composite criterion.

The term "turnover" was also added to the definition. The most recent classification of MSMEs is provided below.

Documents Required for MSME Registration

The documents required for registration vary depending on the type of entity wishing to apply for the MSME certificate. In general, documents such as business address proof, sales, and purchase bills are required.

A property tax receipt, lease deed, allotment letter, or possession letter will be required if the proprietor owns the premises. If the proprietor or the business, or any of the partners or directors of the business, has a municipal license, no other documents are required.

In the case of a rented property, the landlord must provide a NOC (no objection certificate) and a rent receipt. In addition, an electricity or water bill (showing utility usage and property ownership) must be submitted.

If the entity is a corporation, a copy of the 'MoA' (Memorandum of Association) and 'AoA' (Articles of Association) must be submitted along with the certificate of incorporation. A copy of the general meeting resolution authorizing one of the directors to sign is also required.

In the case of partnership firms, the partnership deed must be submitted, as well as a copy of the registration certificate if it is a registered partnership firm.

Aside from the mandatory documents mentioned above, there are some documents that must be submitted on demand, such as purchase bills and receipts related to the installation of the plant and machinery. A copy of the proprietor's industrial certificate, if applicable, must also be submitted.

Steps for MSME Registration

The following are the steps to take for the MSME Registration online process:

MSME Registration Benefits

MSME Application Form Components

MSME Registration Status Check

To check the status using your name and registration number, follow the steps below:

MSME Registration Fees and Charges

The fee for MSME registration is determined by the organization through which you will complete your registration. There is no fee for MSME registration when you register through the government website. However, in the case of government registration, the process is time-consuming and difficult. You will face numerous challenges. You'll need to fill out and re-fill your forms. As a result, when you approach an organization with expert consultants to complete your registration, you will be charged a very small fee for MSME registration.

MSME Registration Online - Related FAQs

Ans: Yes, MSME registration has been phased out in favor of Udyam registration. If any micro, small, or medium-sized enterprises want to start a business, they must register with MSME/Udyam Registration. This MSME/Udyam Registration registration is entirely online. This facility offers numerous benefits and subsidies to businesses.
Ans: Yes. An Aadhaar card is required for registration under the Udyam scheme. If the applicant is not the proprietor, the Aadhaar card of both the partner and the director will be required.
Ans: Yes, both existing and new businesses can apply for MSME/Udyam Registration, as long as the existing unit is operational and meets the registration threshold limits. To take advantage of MSME benefits, UAM Registration must be re-registered for Udyam Registration.
Ans: The Udyam Registration Certificate has no expiration date. The certificate will not expire as long as the entity is ethical and financially sound.

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