MSME / Udyam Registration is a registration process for classifying enterprises into micro, small and medium based on the investment made in plant & machinery or equipment. MSME Registration is necessary for availing specific government schemes, benefits and subsidies for your business enterprise. Presently, there are no mandatory requirements to register an enterprise under MSME Act. However, there are certain benefits afforded by the government with taxes etc. which will be available if one registers his entity as MSME.
The Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 contains provisions of Delayed Payment to Micro, Small and Medium Enterprises (MSEs). (Section 15- 24). State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references/filing on Delayed payments. (Section 20 and 21)
You can get your MSME registration now, Aadhaar card and pan card are required to be submitted to get your Registration. The MSME Registration Process will be fully online through the Udyam portal, and enterprise details like GSTIN approval and Income Tax numbers linked to GSTIN are available in the portal instantly. The Indian government has taken steps to ensure that all companies, including MSEs (Micro, Small, and Medium) get registered on the Udyam Registration Portal integrated with the Income Tax and GST Systems. GST is not compulsory for enterprises that do not require a GST registration under the GST law. The enterprises that need to compulsorily obtain GST Registration under the GST regime need to have GST registration for obtaining Udyam Registration. The registration process for MSMEs can be done in the Udyam Registration Portal by clicking on “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II.”
Enterprise on the basis of the following criteria: –
- A micro-enterprise is a business whose investment in plant and machinery or equipment does not exceed ₹ 1 crore, and turnover does not exceed 5 crores.
- A small enterprise is one where the investment in plant and machinery or equipment does not exceed ten crore rupees, and annual turnover does not exceed fifty crore rupees.
- A medium enterprise is a corporation where the investment in plant and machinery or equipment does not exceed fifty crore rupees, and turnover does not exceed two hundred and fifty crore rupees.
Udyam Registration, also called MSME Registration, is a government registration for Micro, Small and Medium Enterprises (MSMEs). It provides them with a unique identity number (Udyam Registration Number) and a recognition certificate.
The Micro, Small, Medium Enterprise for Udyam Registration Process:
- Any person intending to establish a micro, small or medium enterprise may register online on Udyam Registration Portal, based on self-declaration with no requirement to upload any documents, papers, certificates or proof.
- On registration, an enterprise (referred to as “Udyam” in the Udyam Registration portal) will be assigned a permanent identity number to be known as “‘Udyam Registration Number”.
- An e-certificate, namely, “Udyam Registration” shall be issued on completion of the registration process.
Documents required for MSME Registration:
- Provide Basic Information:
- Name of Enterprise.
- Type of Organization.
- Business Activity.
- Total investment in the business.
For proprietary Firm:
- Shops & Establishments Certificate Ghumasta.
- Address Proof of the firm.
- For Pvt. Ltd./Limited/OPC:
- MOA, AOA Incorporation Certificate.
- Company PAN Card.
- Company Address Proof.
- For LLP/Partnership Firm:
- LLP Agreement/Partnership Deed.
- Firm Pan Card.
- Firm Address Proof.