MSME Udyam RegistrationMSMEs are the lifeblood of India’s economy, creating millions of jobs each year and making significant contributions to the country’s growth and development.
Also Read: Udyam Registration
The following are three encouraging facts regarding MSMEs in India:
- By 2023, MSMEs and small companies will employ 16 crore Indians.
- MSMEs are responsible for 30% of India’s GDP.
- MSMEs account for 40% of all exports generated in India.
This clearly demonstrates that small firms and small enterprises dispersed over India have huge potential and a bright, exciting future. If you own a small business but haven’t yet registered, you’re missing out on valuable business and subsidy opportunities. MSME Udyam registration in India is advantageous and essential for a variety of legal and tax reasons.
We’ll walk you through the full MSME Udyam registration procedure and explain the benefits of MSME registration, as well as the MSME Udyam registration expenses.
But first, let’s define what MSME means.
MSME is defined as a small and medium-sized business. What exactly is MSME?
A Micro-Small and Medium Enterprises (MSME) is a small business that has been registered with the Ministry of Micro, Small and Medium Enterprises (MMSME). It is divided into two categories: manufacturing businesses and service businesses.
Here are the definitions, as per the most recent government rules (May 2020):
- A microenterprise is a business with a capital investment of less than Rs 1 crore and a revenue of less than Rs 5 crore.
- A small business is defined as one with a capital investment of less than Rs 10 crore and a revenue of less than Rs 50 crore.
- A medium enterprise is defined as a business with a capital investment of less than Rs 20 crore and a revenue of less than Rs 100 crore.
How is a company classified as a Micro, Small, or Medium Business?
The previous year’s Income Tax Return will be used to determine the amount of investment in plant and machinery or equipment (which includes all tangible assets excluding land, buildings, furniture, and fixtures).
Exports of commodities, services, or both are not included in the computation of turnover.
How to Register for MSME Udyam Online
MSME Udyam registration can be completed online at the Ministry of Micro, Small and Medium Enterprises’ website. Furthermore, further information on the numerous initiatives for MSMEs in India, including credit and lending schemes, subsidy schemes, and so on, may be found on the Ministry of Micro, Small and Medium Enterprises’ official website.
An Aadhaar card, as well as the registered phone number, are now required to begin the MSME Udyam registration procedure.
Other documents necessary for MSME Udyam registration include:
- Documents of ownership or a lease arrangement
- Check that has been cancelled
- PAN Card
- Documents pertaining to the formation of a business.
- Documents such as the lease deed, property tax receipt, and others are required for self-owned properties.
- NOC from the owner, rent receipts, utility bills, and other documents are required for rented premises.
- Deed of Partnership
- Association Memorandum
- Association Articles
- Copy of Purchased Machinery Licenses and Bills of Sale
If you have not yet registered as an MSME, these are the steps to take
Step 1: Select “For new entrepreneurs who have not yet registered as an MSME” from the Udyam Registration menu.
Step 2: Fill in your Aadhaar number and name as it appears on your Aadhaar card, then click “Validate & Generate OTP.” Select Validate after entering the OTP number that was sent to your cell phone. Your Aadhaar number will be successfully validated.
Step 3: Verification of the PAN. Choose the sort of business you want to start, then input your PAN number and click “Validate.” Your PAN number will be verified. Your PAN number will be verified.
Step 4: Filling out the registration form for UDYAM. Please fill in the following information:
- Phone number and email address
- Gender and Social Class
- Name of the company and its location
- Incorporation date
- Choose whether or not production will begin.
- Information on the entity’s bank account
- The business unit’s main activity is
- Activities are classified under the National Industry Classification System (NICS).
- The number of persons that are employed as a whole.
- The amount of money spent on machinery or equipment.
- If you want to be registered on the Government e-Market (GeM) Portal, select yes or no.
- If you want to be registered on the TReDS Portal, select yes or no.
- From the drop-down menu, pick the District Industry Center.
Step 5: After filling out the form, check the box that says “I agree to the terms and conditions” and then click “Submit and Get Final OTP.” Enter the OTP that was sent to your phone and hit the “Final Submit” button. You will be given a registration number once you click on the ‘Submit and Get Final OTP’ button. You will receive an E-registration document on your e-mail id once the government has confirmed all of your information.
Suggested Read: Udyam Registration Process