MSME Registration and why it is necessary?

MSME is an acronym for micro, small and medium enterprises, and these MSMEs are the backbone of our country. They are often an engine of economic growth by encouraging equitable development for all. The Government of India is continuously taking steps to support and promote MSMEs through various subsidies, schemes, and incentives. MSMED Act has been enacted to promote MSMEs to get benefits from the Central or State Government and the Banking Sector. It requires MSME Registration.

Objectives of the Department behind the MSMED Act

• Industrialization of the country.
• Attract investment to elevate the industrial and social economy of the country.
• Revolutionize and support the industrial units to make them globally competent.
• Creating an encouraging atmosphere for the industries to compete at national/ international levels.
• Ensure an industry-friendly atmosphere and appropriate policies for the expansion of the sectors.
• Help and harmonize between industry and other stakeholders & act as a facilitator.
• Construction of Basic Infrastructure for Industrial Development.
• Creation of job openings through Self Employment Schemes.
• Focus on Training and development of entrepreneurship skills among the educated jobless youth.
• Inspire Educated unemployed youth to opt for self-employment.
• Revitalization of sick/closed industrial units.

About MSME Udyam Registration

Any Enterprise can obtain the Udyam Registration. It can be registered through the official portal of Udyam. 

• The process for Udyam Registration is online and digitalized.
• “Udyam Registration certificate” is an e-certificate issued at the end of the registration process. UR certificate contains an active QR Code scanning. It has the details about the business.
• Whoever intentionally misrepresents details in the Udyam Registration or updating process shall be liable to a penalty under section 27 of the MSME Act.
• The Udayam online system is integrated with Goods and Service Tax Identification Number (GSTIN) and Income Tax systems; details on investment and turnover of enterprises are taken automatically from Government databases.

Requirements for MSME Registration

• Having PAN, Aadhar & GST numbers is mandatory for MSME registration

Why is MSME Udyam Registration Necessary?

An MSME registered under the MSMED Act has the following below-mentioned benefits:

• MSMEs Get Benefits from Banks: After the introduction of Udyam registration, all banks and even financial institutions are prioritizing MSMEs and making plans for them. MSMEs can get a corporate loan at a lower interest rate, up to 1.5 percent lower than the interest on regular business loans.
• Remarkable Tax Benefits: Depending on the business industry, MSMEs can benefit from the excise exemption scheme. They can get direct tax exemption in the launch years of their business.
• Benefits of Electricity Bills: Small business holders listed on the Udyam portal can get some concessions on their monthly energy bills and save their resources.
• Approval of Other Licenses: For businesses registered under MSME, it has become very easy to apply for and get approval on many registrations and licenses if registered with Udyam.
• SMEs receive benefits while applying for Government Tenders Easily: Registered MSMEs are permitted to participate in government tenders and can avail of exemption of EMD and other rules.
• Interest in Overdraft (OD): Under the credit guarantee trust fund scheme get an advantage on OD and an exemption of 1 percent interest. It minimizes loan EMI.
• Benefits from State Government: The state governments provide subsidies on electricity, tax, rebates in sales tax and entry to the business sectors, and buying preference for the goods they leave.
• The Central Government Benefits: The central government has announced various valuable schemes for MSMEs such as a credit guarantee scheme, Atma Nirbhar Bharat, women entrepreneurs, Quality management standards & quality technology tools, zero effect and zero defect, and many others.
• International Business Opportunity: MSMEs can take advantage of the opportunity to join in international fairs and trade shows where they can showcase their products & services to a wide-ranging audience.
• Get Benefits from Subsidies: MSMEs can avail subsidy from National Small Industries Corporation (NSIC) and credit rating agencies and are eligible for Industrial Promotion Subsidy (IPS) subsidy.

So, if you are thinking of starting a new business on a small scale, get the benefits of MSME and register your company/firm at the official government site. 

We are here to provide MSME Registration only @499/-

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MR Hitesh Ahuja

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