NO FEES is being charged by anyone, whosoever wants to register their organization under MSME Act, 2006. Udyog Aadhaar or MSME Registration is made free by the Government of India since 2016. You can visit the Udyog Aadhaar website and directly get your MSME registration done without paying for it.
MICRO, SMALL & MEDIUM ENTERPRISES (MSME): Driver of Indian economy
Over the years MSME has been a game changer and plays an important role in driving the economic growth of India. MSME has emerged as the most dynamic & vibrant sector for Indian economy. Irrespective the line of business you are in, be it manufacturing, servicing, registration can be obtained through MSME Act.
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What is Micro, small & medium enterprises (MSME)?
According to Micro, Small & Medium enterprise development act, 2006 MSME’s are classified in two broad categories:
1. Manufacturing enterprise: Engaged in production of goods which comes under the purview of Schedule (I) of Industries act, 1951 or which requires installation of plant & machinery in the formation of final product.
2. Service enterprise: Engaged in providing or rendering services to individuals/corporates/groups of persons which requires equipment installation for the same.
The following enterprises are categorized depending on the Investment in plant & machinery/ service enterprise.
|Less than 25 Lakh
|Less than 10 Lakh
|25 Lakh – 5 Crore
|10 Lakh – 2 Crore
|5 Crore – 10 Crore
|2 Crore – 5 Crore
What is the MSME Registration process?
Before getting into the step by step process of MSME registration one should be aware about the documents which are required to be attached with your application.
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DOCUMENTS REQUIRED FOR MSME/UDYOG AADHAAR REGISTRATION
Aadhaar card: Aadhaar number is now compulsory for registration of MSME under the act. Since Aadhaar number acts as a nationwide identification for every individual therefore it helps in a complete transparent process.
PAN card: For all the financial transaction related with one’s personal income or an organisation, PAN card helps it to automatically track the
Business address proof:
Self-owned property- Allotment letter, Possession letter, Purchase deed, Property tax receipt.Rented property: Rent agreement, NOC from landlord, any other receipt, evidencing the landlord ownership over the property.
Sale bill/Purchase bill: Invoice related to the product which you have purchased or you want to supply further is required to be submitted.
MOA/AOA/Partnership deed: In case of partnership firm, it has to submit its partnership deed & certificate for the same. Copy of MOA/AOA/Resolution passed in AGM is also to be submitted.
License copy: Industrial license so obtained by the Government of India should be submitted while submitting application for MSME.
Bills of machinery purchased: Since the installation of machinery is helpful in identifying the category in which the MSME will fall into. Therefore, its bills & receipts must be kept safe and are required to be submitted.
STEP BY STEP MSME/UDYOG AADHAAR REGISTRATION PROCESS
1. Fill in Aadhaar number in the appropriate field to start of your SSI Registration application form.
2. Once your Aadhaar is verified then only you can proceed further in the form.
3. Applicant must fill the details as mentioned in the Aadhaar card issued by UIDAI.
4. OTP Verification: OTP will be sent to the registered mobile number with UIDAI.
5. Category: Applicant must mention the social category to which it belongs (General, SC, ST, OBC). The proof for the same can be demanded by the authority, as and when required.
6. Gender: Male/female/transgender whichever category you fall under.
7. Name of Enterprise: Legal name of enterprise under which all the transactions of the business will be done, should be mentioned.
8. Permanent Account Number (PAN): Applicant must mention the PAN details in case of co-operative, public limited, Limited liability partnership while it will be optional in any other type of organization.
9. Official address: postal address of the organization including the state, district, Pin code, mobile no.
10. Date of Commencement of business must be specified in the appropriate field.
11. Bank details: IFSC code of the bank branch and the account number where an individual account exist must be mentioned.
12. Person employed: Details of employees who are directly working under the payroll of the company must be mentioned while applying for MSME registration.
13. Investment: While computing the total investment, the original investment (purchase value of items) is to be taken into account.
14. Submit: The Applicant must click on the Submit button to generate OTP which will be sent to email id mentioned for registration.
15. The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.
16. Enter Captcha: The Applicant must enter Captcha before clicking Final Submit button.
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Benefits associated with MSME Registration
· Ease in getting government tenders.
· 15% import subsidy in fully automatic machinery.
· Approvals & Registration process becomes easy.
· Low interest on loans.
· Tariff & tax subsidies.
· Exemptions under direct tax.
· Benefits of all the government schemes.
· Financial support from the government for participating in international expos.
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Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.