MSME stands for Micro, Small, and Medium Enterprises. India is a developing country whose economy is heavily dependent on the MSME sector. The entire country’s economy grows and prospers when these sectors do. These companies are also known as small-scale industries, or SSIs. These industries benefit from the various government benefits offered to MSMEs thanks to MSME registration.
According to the MSME Act, a company can obtain MSME registration regardless of whether it is in the manufacturing or service lines of business. Although the Government of India has not yet made MSME registration mandatory, it is advantageous to do so because it offers numerous advantages in terms of taxation, business setup, credit facilities, loans, etc.
The MSME Act went into effect in 2006. Its goal is to support, facilitate, and increase the competitiveness of India’s micro, small, and medium-sized businesses.
The government updated the MSME classification by adding composite criteria for both investment and annual turnover as part of the Aatmanirbhar Bharat Abhiyan (ABA). The MSME definition also eliminated the distinction between the manufacturing and services sectors. The classification of an MSME according to the most recent revision, which takes into account both investment and annual turnover, is as follows.
Prior to now, only manufacturing and service industries were covered by MSME registration. The wholesale and retail trade, with the exception of motor vehicles and motorcycles, will fall under the MSME classification, the government announced in July 2021, and as a result, those businesses can apply for MSME registration. As a result, businesses in the manufacturing, service, wholesale, and retail sectors are eligible to apply for MSME registration.
Registration for MSME is done entirely online. The government website udyamregistration.gov.in is where MSME online registration should be completed. The following two categories in the portal can be used to register MSMEs:
For new business owners who have not yet registered as an MSME or an EM-II, for those who have a UAM registration, through assisted filing.
For new business owners with EM-II or MSME registrations that have not yet been completed
New entrepreneurs must click the “For New Entrepreneurs who are not Registered as MSME or those with EM-II” button on the home page to register as an MSME and entrepreneurs with EM-II registration. By entering the PAN number and Aadhaar card number, a new MSME registration is completed.
The button that reads “For New Entrepreneurs who are not Registered as MSME or those with EM-II” on the government portal’s home page opens the registration page and asks the entrepreneur for their name and Aadhaar number. After filling out these fields, you must click the “Validate and Generate OTP Button”. The PAN Verification page opens after this button is clicked, the OTP is received, and it is entered.
The business owner must enter the “Type of Organization” and PAN Number before clicking the “Validate PAN” button. The portal confirms the entrepreneur’s PAN number by obtaining it from government databases.
The Udyam Registration form will appear after PAN verification, and entrepreneurs must fill it out with their personal information and business information.
The “Submit and Get Final OTP” button must be clicked after all the information on the MSME registration form has been entered. A message stating that the MSME online registration process was successful and providing a reference number will then appear. For later use, write down the reference number. After the MSME registration form has been verified, which could take a few days, the Udyam Registration Certificate is given out.
Registration For Entrepreneurs Already Having UAM
The button labelled “For those having registration as UAM” or “For those already having registration as UAM through Assisted filing” must be clicked by users who are already registered as UAMs. This will bring up a page where you can enter your Udyog Aadhaar number and choose an OTP option.
You have the choice of obtaining the OTP via email or mobile with the filled-out UAM. The “Validate and Generate OTP” button must be clicked after selecting the OTP Options. After entering the OTP, the MSME registration form must be filled out with the necessary information, and Udyam registration is then complete.
Aadhaar and PAN cards are the only documents required for MSME registration. Due to the fact that MSME registration is entirely online, there is no requirement for document proof. The Udyam Registration Portal will automatically pull PAN and GST-related information on investment and turnover of businesses from the government databases. The Income Tax and GSTIN systems are completely integrated with the Udyam Registration Portal.
Businesses that are exempt from the GST law’s registration requirements are not required to pay GST. However, in order to obtain Udyam Registration, the businesses that must compulsorily register for GST under the GST regime must first have their GST registration.
You must re-register in the Udyam Registration Portal by selecting “For New Entrepreneurs who are not Registered as MSME or those with EM-II” if you already have a UAM registration or any other registration issued by a body under the Ministry of MSME.
All companies with UAM registrations must switch to Udyam Registration by June 30, 2022. The UAM registration will become invalid and the entrepreneurs won’t be eligible for the benefits offered to MSMEs if they don’t switch to Udyam Registration by June 30, 2022.
An online message confirming successful registration with a reference number will appear after submitting the MSME registration form. After confirming the registration form submitted on the portal, the Ministry of MSME will issue the Udyam Registration certificate or MSME certificate to the entrepreneur’s email address.
After a few days have passed since the registration form was submitted, the Ministry will issue the MSME certificate. The MSME registration certificate has a lifetime expiration date. Thus, it doesn’t need to be renewed.