MSME/SSI Registration

Overview

The Ministry of Micro, Small and Medium Enterprises, commonly known as MSME, is a key governmental body responsible for formulating and managing regulations, guidelines, and laws concerning small-scale industries in India. Established on October 2, 2006, MSME aims to incentivize, facilitate, and enhance the competitiveness of MSMEs across the nation.

Considered the backbone of the Indian economy, the MSME sector encompasses a vast number of small-scale industries, significantly contributing to the country’s GDP. Backed by the government, MSME is an initiative designed to foster the growth of small-scale industries operating in both the organized and unorganized sectors.

MSME Classification

Previously, MSME classification was determined based on the investment made in production facilities and machinery. So to access MSME benefits, the MSMEs have to confine their investment to the lower level, as shown below:

Documents Required

The documents required for MSME/SSI registration are as follows:

• Aadhaar card of the proprietor/partners/directors
• PAN card of the enterprise
• Bank statement
• Business address proof
• Details of the business activities and the products/services offered

How to Apply for MSME Registration on Udyam Registration

Visit the Udyam Registration Portal: Access the government-backed Udyam Registration portal, which is integrated with Income Tax and GSTIN systems.

Check GST Requirement: For enterprises outside the GST law’s scope, GST registration isn’t mandatory. However, those falling under GST regulations must obtain GST registration to apply for Udyam Registration.

Apply on the Portal: Complete the MSME registration process on the Udyam portal. No fees are charged for this registration.

Confirmation Message: Upon submission, a confirmation message with a reference number will appear on the screen.

Receipt of MSME Certificate: After verification, the MSME ministry will email the MSME certificate or Udyam Registration certificate to the applicant.

Validity and Download: The MSME certificate remains valid for a lifetime with no renewal required. Entrepreneurs can download the certificate from their respective accounts on the Udyam Registration portal.

Points to Consider

• Re-Registration: Those already registered under UAM or any other MSME authority must re-register on the Udyam Registration Portal, selecting the option “For New Entrepreneurs who are not registered yet as MSME or those with EM-II”.
• Migration for UAM Registration: Enterprises with UAM registration need to opt for Udyam Registration through the migration process before 31/12/2021.
• Consequences of Non-Compliance: Failure to adhere to the above conditions will invalidate the UAM registration, resulting in the loss of benefits under the MSME scheme.

Benefits Offered by MSME Registration to Small Scale Units

Access to Cheaper Loans: MSME registration holders can access loans at significantly lower interest rates, sometimes as low as 1.5%.

MAT Credit Carry Forward: Credit relating to Minimum Alternate Tax (MAT) can be carried forward for up to five years instead of the usual 10 years.

Rebates and Concessions: MSME registration ensures eligibility for various rebates and concessions offered by the government.

Concessions on Patent Registration: MSME registration holders can avail concessions on the registration of patents.

Access to Government Platforms: Registration on the Udyam Portal grants access to Government e-Marketplace and e-tenders.

One-Time Settlement Fee: MSMEs facing payment issues with vendors can benefit from a one-time settlement fee.

Government Scheme Benefits: Registration aids in securing benefits from various government schemes including:

   – Public Procurement Policy

   – Credit Linked Capital Subsidy Scheme

   – Credit Guarantee Scheme

Priority Sector Lending: Entities with MSME registration are eligible for priority sector lending from banks.

Government Security Deposit Waiver: Waiver of government security deposits is available, which is advantageous when participating in e-tenders.

Subsidy for Barcode Registration: MSMEs are eligible for subsidies for barcode registration.

Exemption on Direct Taxes: MSMEs can benefit from exemptions on direct taxes through various tax-saving schemes.

Fees Relaxation for ISO Certification: MSMEs receive fee relaxation for obtaining ISO certification.

Electricity Bills Concession: Concessions on electricity bills are provided to registered MSMEs.

Exposure to Trade Fairs: MSMEs registered with the Udyam portal get exposure to domestic and global trade fairs, fostering business growth and networking opportunities.

Why Connect with Corporate Raasta Consulting for MSME Registration

Corporate Raasta Consulting is recognized as one of the most reliable platforms for government registration and licensing services. We prioritize delivering top-notch services to our clients, ensuring compliance with various regulations and acts.

Some reasons to choose Choosing Corporate Raasta Consulting Services:

• Experienced Professionals: Our team comprises highly experienced professionals and field experts who provide expert guidance throughout the registration process.
• Simplified Process: We simplify complex pre-registration requirements, ensuring our clients understand every step of the process clearly.
• Proven Track Record: With a proven track record of delivering flawless services to diverse clients, we guarantee high-quality service delivery.
• Timely Delivery: We are committed to delivering government licenses and registrations on time, ensuring our clients’ business operations proceed smoothly.