What Is Required To Register A Company Under MSME In India?

In the rapidly growing Indian economy, micro, small, and medium enterprises (MSMEs) are the backbone. Their effects on the revenue of the nation are significant, aside from the fact that they give employment to an incredibly large number of workers. The government of India has therefore resolved to simplify the business registration process and introduced the MSME registration scheme, which comes under the MSMED Act of 2006, to that effect.

This article is for an entrepreneur looking for the right path, which includes the complete process to register a company under MSME, a list of documents, and expert help for registering a company in India.

Understanding The MSME Registration

MSME registration is the legal process to register Micro, Small, and Medium Enterprises under the MSMED Act, 2006. This is the initiative taken by the government to support small businesses in India. It is now recognized as Udyam registration, introduced by the Ministry of MSME to simplify the registration process.

Who Can Register A Company Under MSME?

Any small business involved in manufacturing or providing services can register under MSME in India. The following are the eligible businesses:

• Proprietorship firms
• Partnership firms
• LLPs (Limited Liability Partnerships)
• Private or Public Limited Companies
• Self-Help Groups, Societies, and Trusts

Step-by-Step Process to Register a Company Under MSME

The Government of India has simplified the process to register a company under MSME through the Udyam Registration Portal. Here is the step-by-step guide:

Step 1: Access The Udyam Registration Portal

Just visit the Udyam government registration portal through the link – https://udyamregistration.gov.in. All the processing of MSME registration is online and paperless through this government portal.

Step 2: Enter Aadhaar and PAN Details

The applicant must upload the Aadhaar number and PAN of the business owner or the authorized person. OTP is used to authenticate and verify these details.

Step 3: Provide Business Information

Share the details like the enterprise name, organization type, business location, bank info, and employee count. You will also need to indicate your primary business activity (manufacturing or services).

Step 4: Mention Investment and Turnover Details

Invest in plant, machinery, and/or equipment, the approximate amount, and the annual turnover of your business in the mandatory fields. It is these numbers that will establish whether your company is a micro, small, or medium enterprise.

Step 5: Submit the Application

After filling in all the details, you will be asked to validate the form and press the ‘Submit and Get Final OTP’ button. You need to enter the OTP received on your registered mobile number to complete the verification process.

Step 6: Get the Udyam Registration Certificate

Once the submission is successfully done, the system then generates a Udyam Registration Certificate with a designated Udyam Registration Number (URN). The certificate is the definitive proof of MSME registration and is also downloadable on the portal.

Documents Required To Register A Company Under MSME

For MSME (Udyam) registration, a great deal of documentation is not required – just the basic personal and business details.

• Aadhaar Card of the owner or approved signatory
• PAN Card of the individual or company
• Proof of business address (rental contract or utility bill)
• Bank account information (account number and IFSC code)
• Nature of business (manufacturing or services)
• The company’s investment and turnover details

Benefits Of Registering A Company Under MSME In India

Registering your business as an MSME provides several advantages, which are supportive in different areas like the company’s development, savings, and ensuring the company is secure.

• Loans Made Easy: Expect to receive financing at lower rates with less paperwork.
• Government Subsidies: Companies can get tax deductions and credits for their development activities.
• Late Payments Protection: Buyers are required to pay interest in case they take more than 45 days payment rule to make the payment.
• Tender Privilege: MSMEs are placed at the top of the list when it comes to government contracts.
• Schemes Access: MUDRA loan, PMEGP, and different MSME schemes are open to you.
• Cost Cutting: One of the reasons is that you will pay less on your electricity bills, and patent and ISO fees are some of the advantages.
• More Trustworthy: It’s like the business becomes a customer and investor partner by gaining their trust more.

How Udyamita Helpline Helps To Register A Company Under MSME?

Udyamita Helpline makes the MSME registration process easy and supports the entrepreneurs in a hassle-free manner. They carry out the following activities:

• Accurately complete the registration form on the Udyam portal.
• Getting and checking documents needed for registration.
• Explaining and resolving issues with the application or delays in submission.
• Informing about government schemes and incentives after registration.

With the assistance of Udyamita Helpline’s specialist, businesses can obtain their MSME certificate without any trouble in no time. For this, you only have to connect with us at advisor@udyamitahelpline.com.

Conclusion

When small businesses register as MSMEs, the government acknowledges, supports financially, and protects them. The process is simple, takes place online, and offers many advantages that help in the growth of businesses. Udyamita Helpline offers professional support to entrepreneurs to register a company under MSME, and thus, they can easily and quickly start availing the benefits of being an MSME in India.

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