Registration of MSME is a crucial step to register as MSME and benefit of schemes in the current scenario. MSMEs are the backbone of our Indian economy. Manufacturing industry and about 40% of its exports. The MSME segment has proven to be one of the most vibrant sectors of the Indian economy. MSME produces & manufactures a variety of products for national as well as international markets.
MSME helps them, foster growth and the development of various small sectors such as khadi, village and coir industries. They collaborate and work with relevant ministries, state governments and stakeholders for education purposes in rural areas and to improve people’s living standards. They played a crucial role in offering numerous employment opportunities in rural areas. They have contributed lots to industrialization of these areas with small capital investment compared to big industries.
The MSME is the corresponding entity for large companies; it has come up with tremendously to socio-economic growth and development. MSME also performs and plays an influential role in the country’s prosperity in various areas such as flexibility in operations, mobility across locations, low investments, low import quotas, and high contributions. To national or local production. With the ability and capacity to deliver appropriate local technology, MSME faces stiff competition in domestic and international markets.
MSMEs are branches of technological knowledge that contribute to the creation of defense-related articles and generate new entrepreneurial knowledge, training, and skills updates through specialized training centers.
About MSME Registration
The new MSME registration procedure is on behalf of Udyam Registration from July 1st. Small and medium-sized organizations elucidate that an MSME must be acknowledged and known as “Udyam” in our country, as the phrase is closer to the meaning of an enterprise.
Udyam Registration or MSME Registration can submit online on a self-declared basis with no further need and requirement for supporting documents, except for Aadhaar as per MSME Ministry Notice. The Udyam registry or MSME registry has also been merged into IT and GST systems. Companies with an Entrepreneur Memorandum or Udyog Aadhaar communication or other registration issued by an agency of the MSME Ministry must re-register through MSME.
Key Highlights of MSME Registration
The Government has put in place a mechanism with a complete system of registration process which includes: A company to be registered will be known as Udyam and the process will be known as “Udyam Registration”. After MSME has been registered, a permanent registration number is needed to be assigned. The online certificate is issued upon completion of entire MSME registration online process. Companies can access it. It is not necessary to renew the MIPYMES registration. The single window systems in Champions Control Rooms and DICs will help all those who wish to enrol in the MSME registration process.
MSME Registration – Must Follow
MSME registration is free, paperless, convenient and self-declared. The MSME registration process is entirely online. There are no more documents required. Proof of registration of an MSME is required to be uploaded as part of its registration process. Only Aadhaar card or its number is sufficient for registration. Investment & turnover details of PAN and GST-affiliated MSME companies are automatically pulled from government databases. The online registration system is integrated with the income tax and GSTIN system. Possession of PAN card & GST number is mandatory from April 1st 2021 for the registration process. No company allowed submitting more than one Udyam registration. However, any number of activities such as manufacturing or service or both can be specified or aggregated in one data record.
Benefits of MSME registration
- Due to the registration, MSMEs can take out bank loans because the interest rate is low, around ~1 to 1.5%, much lower than regular loans.
- Under the MSME registry, companies can receive an additional credit for the alternative minimum tax, which will carry over for up to fifteen years instead of ten.
- After registering in the MSME register, obtaining a patent or the cost of starting the industry is reduced as many discounts/concessions are available.
- MSME registration helps to get public tenders easily as Udyam registration portal is integrated with the state e-marketplace.
- After registering under the Udyam registry. Also, there is one-off processing fee for MSME unpaid amounts.
After the MSME registration process, the MSME can take advantage of various government schemes. The plan is support for the development of the MSME market, the most well-known plan regulating working conditions and productivity of MSMEs in the international market.
Currently, the Department of Commerce is running a market development support program to encourage exporters, including MSME exporters, to enter and develop foreign markets. The program provides international fairs, exhibitions, study trips abroad, trade delegations, promotion, etc. Direct support under MDA for small entities available for individual sales as well as study trips, fair/exhibition attendance and promotion. SIDBI operates this aid program to fund activities related to commercialization of MSME products on international market. Plan incentivizes MSME to sell their products effectively through effective marketing mechanism which most MSME lack.
MSME market development assistant has proven to be essential over long term for MSME to achieve short-term results with efficient framework.
MSME registration is essential part of achieving great benefits for MSME in current scenario. While MSME registration process with Meraprofit, MSMEs are likely to give you the most attractive opportunities available to them. The most effective scheme of market development assistance for MSMEs can be achieved.