As we know, India is a developing nation, People of India mainly depend upon agriculture and this is one of the features of the developing country. But in recent decades we have seen a lot of changes in our economic activities like shifting of agriculture activities towards the other activities including the manufacturing and service sectors activities. Many industries in India came into operation whether it is the manufacturing or service sector. The advancement of technology leads India to operate these activities. And our government also made an unprecedented effort in this sector.
In India, unemployment is increasing day by day, every man needs a job. The people of India mainly depend upon government jobs for their earnings or their livelihood. People have a lack of will to do their own business, and this may be because of the lack of facilities provided by the government in this field or sector. There was no additional help or benefits by the government to support the people to the businesses.
So the government started or launched an initiative for the small enterprises that intended to run their business in the market. Finally, the government of India established a ministry under the MSME act 2006 to curb the problems encountered by the new enterprises in the market. And this new ministry’s name was the ministry of MSME.
Here the MSME means the micro, small and medium enterprises. so the government has an option through launching this scheme to build the nation self-sufficient and self-dependent in every aspect of necessities.
Also, read – Udyog Aadhaar Number
This ministry of MSME is the highest governing body and also the executive body for small enterprises. This MSME ministry regulates all rules and laws for the MSMEs. All the rules and regulations are framed by the MSME ministry and its key function is to register the small enterprises. So many men who intend to start their business in the Indian market can get this registration through the MSME ministry and avail the additional benefits for their business. MSME ministry provides the enterprises with a number of benefits through its scheme or initiatives. These schemes support the enterprises in many ways to operate their business or enterprises.
Classification of MSME :
For the Microenterprise sector: in this sector, the investment in the plant or on the machinery is below Rs 1 Cr. and the annual turnover is below Rs 5 Cr.
For the Small enterprise sector: for the small enterprise sector the investment in the plant or on the machinery is below Rs10 Cr. and yearly turnover is below Rs 50 Cr.
For the Medium enterprise sector: the investment in the plant or the enterprises or the machinery should be below Rs 50 Cr. and the annual turnover should be below Rs 250 Cr.
These are the classification for the different enterprises in India. according to the classification, enterprises can register accordingly.
The Registration process for MSME :
The registration process is fully online and can be done by the government udyam portal as well as the Private udyam registration portal.
For Government udyam portal – Click here.
For a Private udyam registration consultant – Click here
Registration under MSME can be done under the two categories on the portal –
1. For new enterprises that are not registered under the MSME.
2. And those who have already registered under the MSME.
Now let’s see the new process for MSME registration online.
MSME registration process online :
The stepwise registration process is mentioned below :
- Click here to start the process of registration.
- Here you fill out the Application form: you have to provide all the basic information in the registration form that includes the details of business like name of firm, aadhar number, GST number, and so on.
- You have to fill in the personal details: all the personal details you are required to provide like owner name, mob no, email add, bank account details, and so on. you have to upload your recent photo.
- Now one of the MSME executives will review your form and notify you if there is any discrepancy.
- After the entire process of online registration, you receive a certificate in your mail for MSME registration. Here you can download the registration certificate because the government does not issue any hard copy for the registration certificate, only you get a virtual MSME certificate.
Here I described the complete details of registration for the enterprises. keep in mind that there are no charges for the registration, it is free of cost. However, there are many online portals that can charge certain fees for registration.
Now let’s know the benefits of MSME registration in detail .
Benefits of MSME registration :
It is important to know that the registration under MSME is not mandatory for the owner of firms or enterprises but the MSME registration can maximize the benefits that enterprises’ owners can reap from the offeror scheme provided by the government.
- The enterprises can get patents on a subsidy of 50 %. The main idea behind the patent subsidy is to encourage enterprises to invest and innovate. so here only the registered enterprises can avail these benefits.
- One of the best schemes or benefits for the registered enterprises under the MSME registration is that they can get the bank’s loan without depositing any collateral. This means any enterprise can get several loans like working capital loans and credit line loans without giving any collateral.
- Can get overdraft facility: Enterprises who have good credit scores and also good relations with their banks can easily get an overdraft facility.
- reservation policy for some MSME sectors: under the Government Stores Purchase Programme, the government has made a provision to purchase more than 300 products, especially from these sectors. so that it can boost the MSME market in many ways and is not affected by any stiff fray.
- The main advantage of registered enterprises under this MSME scheme is that it has protection against delayed payment.
So here we elaborately discuss the procedure of MSME registration and related topics such as MSME, criteria for the MSME, registration process under MSME, and so on.
I hope you all will get better information through this blog.