If you’ve been wondering whether your company qualifies for udyam registration, you’ve come to the right place. Let’s take a quick look at what MSMEs are before we go into the details of MSME registration eligibility.
MSME stands for Micro, Small, and Medium Enterprises. MSMEs are such an important element of India’s growing economy that the Indian government has established a special ministry to support and promote them. The MSMED Act of 2006 gives specific benefits to MSMEs in the form of lower-cost loans, tax incentives, and a variety of programs and subsidies.
If you are a current or aspiring entrepreneur, MSME registration can provide you with a number of advantages. It is not necessary to register as an MSME. However, if you are serious about taking advantage of the government’s perks for small businesses and entrepreneurs, you should take advantage of them.
Who is eligible to apply?
MSME or Udyog Aadhaar registration is available to any business entity. MSME registration can be obtained by proprietorship firms, LLPs, public and private limited companies, Hindu Undivided Family (HUF), Partnership firms, One Person Companies, Co-operative Societies, Association of Persons, or any other kind of business. MSME registration requires an Aadhaar number. A valid Aadhaar number is required for any entrepreneur who wants to register his or her business with the government.
Classification of MSME:
A new classification system has been implemented under the MSME Development (Amendment) Bill, 2018. A ‘micro-enterprise is defined as a company with a revenue of less than 5 crores. Other slabs are 5-75 crore for ‘small business and 75-250 crore for ‘medium business.’
Documents Needed to Register an MSME:
MSME registration is available both online and offline. There are no registration fees, and the process is simple and painless. The following are the MSME registration documentation you’ll need:
Any of these documents would work as verification of your address: a possession letter, property tax receipt, lease deed, allotment letter, municipal license, utility bills, rent receipts, and a No Objection Certificate from the landlord.
Copies of Sale and Purchase Bills: A purchase bill must be filed for each raw material utilized in the manufacturing process. A sale bill must also be submitted for every manufactured goods or service provided.
Documents of Legal Incorporation: The partnership deed and registration certificate are necessary if the organization is a partnership firm. A copy of the Memorandum of Association (MoA) and Articles of Association (AoA), as well as a certificate of incorporation, must be submitted if the entity is a corporation. In addition, a copy of the board resolution authorizing the company’s registration as an MSME is necessary.
Other Required Documents: In some situations, the applicant is required to present a copy of an industrial license received from the Indian government after filing an application. All invoices for the acquisition and installation of machinery and equipment must be presented as well.
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MSME registration is available online and is completely free. Although it is not required before starting your business, it is strongly suggested because of the advantages it provides. You must complete an application form that includes the following information:
- The applicant’s Aadhar number
- The applicant’s name, gender, PAN number, email address, and mobile number
- The organization’s PAN, location, and address
- The number of people you intend to hire and the date you intend to open your business
- IFSC code and bank account number
- The company’s primary business activity
- 2 digit NIC code
- Plant and machinery/equipment purchases
You will receive the MSME certificate once the registration process is completed. It will not be issued in hard copy by the Ministry. You will be given a virtual certificate.