MSME registration is favourable for MSMEs as it enables them to take advantage of various MSME schemes offered by the government. In this blog, we shall discuss how to obtain MSME registration and what are the documents required for it.
MSMEs are the backbone of the Indian economy. And to promote them, the Indian government offers a number of benefits which they can avail after the MSME registration. Here, you will get to know about the various benefits that you can reap as an MSME after the registration and how to register MSME online.
What is MSME Registration?
MSME stands for Micro, Small, and Medium enterprises. Promoting the development of the country, MSMEs can be called as the backbone of our economy. Therefore, the Indian government supports and promotes the MSMEs and their growth through the MSME Act. And MSME registration is required in order to avail the benefits of the MSMED Act from Central Government or State Government and the Banking Sector. MSMEs operating both in manufacturing and service sector can obtain the MSME registration under the MSMED Act.
How can I get an MSME Registration?
Let’s now take a look at how to get MSME certificate online. You can simply follow these steps to get an MSME registration online:
Visit the Udyog Aadhaar Website.
Enter your Aadhaar number and the name of the entrepreneur. Noteworthy, the name of the entrepreneur should be the same as on the Aadhaar Card. In case the entrepreneur’s name is Lal Kumar Singh and has his name on the Aadhaar is Lal K Singh, he must enter the one written on the Aadhaar Card.
Click Validate and generate the OTP. An OTP number will be sent to the number registered with the Aadhaar Card. Enter and submit.
Next, select the category— General, Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Caste (OBC). The proof of belonging to the chosen category may also be asked by the authority.
Choose the gender of the entrepreneur. The applicant can also select the physically handicapped status of the entrepreneur.
Next, enter the name of the enterprise by which it is known to the customers or public. Noteworthy, one applicant can have more than one enterprise on his name and linked to a single Aadhaar Card. Each one of them can be registered separately as Enterprise 1, Enterprise 2, and so on.
Next step is to select the type of organization. Notably, only one Udyog Aadhaar Number will be issued for each enterprise.
A PAN number has to be submitted in case of Private Limited, Co-Operative, Limited Liability Partnership, and Public Limited. However, submitting the PAN number will be optional in case of other types of organization.
Enter the location of the plant by clicking “Add Plant” button.
Next, the applicant has to submit the complete postal address of the Enterprise, including the state, district, pin code, e-mail, and mobile number.
The date of the commencement of the enterprise must be entered—the date on which the entity started its operations.
Mention previous registration details, if any, at the appropriate place.
Provide the details of the bank account used for running the business. Also, mention the IFS code of the bank’s branch.
Mention the major activity of the entity—manufacturing or service. In case the entity is working in both the sectors, select the major activity.
Mention the NIC Code (National Industry Classification Code). The entity can choose multiple NIC Code by choosing the “Add More” button.
The total number of people who are employed directly under the entity for whom they are paying the wages and salaries must be mentioned in the appropriate field.
Mention the total investment. And while computing the total investment, the original investment must be mentioned, i.e. the cost of pollution control, industrial safety devices, research and development, and other items specified in the notification by RBI must not be taken into the account.
Based on the location of the enterprise, the applicant must fill the location of the District Industries Center (DIC).
Enter submit to generate the OTP which will be sent to the email mentioned for registration.
Enter the OPT and captcha for the final submission.
What are the Documents required for MSME Registration?
In order to obtain an MSME registration certificate, the entity is required to submit the following documents:
Business Address Proof
The following documents are required if the premise is owned by the MSME owner:
- Allotment Letter
- Possession Letter
- Lease Deed or Property Tax Receipt
If the premise is rented, the following documents are required:
- Rent Receipt
- No Objection Certificate from the Landlord
- Utility Bill or any other document evidencing the landlord’s ownership
Copies of Sale and Purchase Bill
The entity has to submit the copy of the sale bill for each product it will supply. A purchase bill for the raw material that it will purchase is also required to be submitted.
Partnership Deed / MoA and AoA
A partnership deed has also be submitted if the business is a partnership firm. And if the partnership firm is registered, the registration certificate has also to be submitted. A copy of Memorandum of Association and Articles of Association and the certificate of incorporation has to be submitted in the case of company.
Copy of License & Bills of Machinery Purchased
In some cases, the entity has to submit a copy of the industrial license which can be obtained by giving an application to the Indian Government. Additionally, sometimes the bills and receipts of the purchase and installation of machinery or plant are also required to be submitted.
What is the Validity of MSME Registration Certificate?
The MSME registration will be valid for 5 years from the date of the issue of PRC (Provisional Registration Certificate). PRC will automatically lapse after the end of 5 years.
Notable, an MSME registration is very beneficial for the MSME and brings them number of benefits. And with the help of before-mentioned easy steps of registration, you can also register your MSME and take advantage of all the benefits.