A Complete Guide To MSME Registration In India

India offers the most favorable environment to build a business today. In a developing nation like ours, small businesses are the backbone of the economy. With the various emerging enterprises, it’s necessary to provide guidelines about the appropriate MSME registration process.

MSMEs, an acronym used to denote Micro, Small, and Medium Enterprises, is constituted to serve the enterprising community contributing to the process of nation-building. Businesses emerging in the MSME sector of the country contribute by keeping the country at the edge with its national counterparts worldwide. 

To become an enterprise under the MSME sector in India requires registration to the MSME. As per the MSME act, whether the business falls under the manufacturing sector or service sector, these businesses should register under MSME.  

A business registering under MSME can avail various perks to the companies in case of taxation, availing a line of credit to scale the business. This suggests business loan eligibility and considerate business loan interest rates. Let us try to understand more about how to get MSME registration in India.

But what exactly is the MSME registration process?

Companies can get their MSME registration done online through the government portal. The company registration for MSME is made under two main categories, these are:

• MSME registration for businesses and owners who have not yet registered on the portal.
• And registration of those who have done with MSME registration as EM-II or Udyog Aadhar Memorandum (UAM).

Fresh MSME registration for entrepreneurs registering for the first time:

The first step to go through the registration is to visit https://udyamregistration.gov.in/ and register an MSME. It can be done via your Aadhar card number, with or without a PAN card.

Following are the steps for MSME registration via PAN card:

• Press the “For New Entrepreneurs who are not Registered yet as MSME” option on the portal.
• Now, you enter your name and Aadhar number on the MSME registration page.
• Get and verify the OTP.
• If you already hold a PAN card, the portal retrieves the details from the government files itself, and you just need to add your ITR details.
• Verify your PAN and add the details of your factory, service, or industry.
• After adding all the details, press the submit button to get the final OTP. 
• When you complete your MSME registration, you will receive a reference number. The verification of MSME registration takes a couple of days, and you will get the Udyam Registration Certificate after that. 

MSME registration for those who already have EM-II or UAM:

If you have registered as EM-II or UAM already, visit https://udyamregistration.gov.in/ and press ‘For those having registration as EM-II or UAM. Enter your Udyog Aadhar number and fetch and verify OTP. The MSME registration process is then complete. 

What are the perks of registering as an MSME?

• With an MSME registration, businesses or individuals can get bank loans at interest at a comparatively lower rate than regular loans. So it can be said that business loan interest rates become quite flexible and business benefits out of it by way of interest savings. 
• Business loan EMI can also be easily calculated with the help of an online business loan EMI calculator and a comparison can be made for EMI payments cost. This is compared with other business loan interest rates offered and accordingly applications can be made for suitable loans. 
• Under the MSME Act, businesses that have obtained an MSME certificate are eligible to avail of tax exemptions. 
• Licenses and certificates issued by the government are easily granted to registered MSMEs.
• Flexible business loans and credit facilities are available to registered MSMEs. Business loan eligibility becomes convenient. 
• Registered MSMEs enjoy compensation on the expenses which occur for ISO certification.
• MSMEs are allowed credit for Minimum Alternate Tax (MAT) to be carried forward for fifteen years (10 years in case of NON-MSMEs). 
• After a business is registered with MSME, they become easily eligible to bid for government tenders. They can avail such facilities due to the amalgamation between the Udyam registration portal for MSMEs, with the government’s e-marketplace made for easy access to e-tenders. 

Thus there are several advantages for businesses under MSME registration. They can derive benefits in terms of being eligible for business loans at a reasonable business loan interest rate. This will enable them to successfully expand and grow their business out of the various amalgamations within the government’s schemes.