Registration Procedure for MSME and Latest Updates
MSME (Micro, Small, Medium Enterprises) are Small Scale Industries (SSI) industries that promote employment to a number of people across India. The growth of these industries benefits the economic growth of the country, thereby forming the backbone of our country’s economy.
Udyam registration by MSMEs helps them obtain various benefits and schemes provided by the government. By making use of these schemes, the MSME sectors can enjoy a subsidised running of their firm whilst facing competition with other firms.
For new entrepreneurs who need to register for Udyam they just need to log on to the website and enter details such as their name and Aadhaar number. If they have a PAN number, they can enter that as well and the portal will link their PAN information available at the government database and automatically fill in the details. The rest of the details like ITR, name of industry, establishment, etc need to be filled by the entrepreneur on their own.
Without Pan Card
Only sole Proprietors can apply for Udyam certificate without a PAN number. The rest like Partnership, Pvt. Ltd, Public Ltd, OPC, LLP firms will need a PAN number in order to get registered.
The registration procedure is more or less the same as applying with a PAN number. The proprietor will be needed to fill in all the required details after selecting ‘No’ for ‘Do you have a PAN’. However, having a PAN number and GSTIN is mandatory from 1st April, 2021. Hence, every proprietor will be required to re-register before this date.
After filling all the details for both the above cases, the entrepreneur will need to click ‘Submit and generate OTP’. Once that is done they will receive a ‘Thank You’ message along with a reference number which confirms their registration. The registration will need to be verified which may take a few days after which the certificate is issued.
Benefits of Udyam Registration
MSME registration allows bank loans to become comparatively cheaper as there is a decrease in interest rate (upto1.5% lower than interest on regular loans).
A business owner can be completely exempted from Direct tax laws.
Registration also benefits in obtaining a patent or setting up an industry at a reduced cost. This is achieved through the available rebates and concessions.
There is a huge concession on electricity bills for MSME sectors.
Government tenders are issued with ease as the Udyam Registration portal is integrated with Government E-marketplace which gives easy access to their marketplace and e-tenders.
When an MSME takes part in foreign expos or trade fairs, it receives financial assistance and various benefits from the Indian government.
There’s a One Time Settlement fee for non-paid amounts of MSME.
Latest Updates Regarding MSME/Udyam Certificate
According to the notification declared by the Government of India on 1st July, 2020, 'Udyog Aadhaar Memorandum' will now be known as ‘Udyam’. The registration procedure will be known as ‘Udyam Registration’.
As per the Ministry of MSME every business unit registered under MSME/Udyog Aadhaar shall be treated as a valid MSME upto 31st March, 2021. Hence, these MSME enterprises must re-register on or before the above date.
PAN number and GSTIN have been made mandatory for registration:
All Partnership, Pvt. Ltd, Public Ltd, OPC, LLP firms need to have a PAN number and GSTIN along with their Aadhaar number.
As from 1st April, 2021 PAN and GST will be made mandatory for Proprietors as well, hence they must apply for PAN and GST before this date.
Relaxation of MSMEs During Covid-19
Due to the current pandemic situation, the Indian economy has come across a huge financial crisis. Obviously, the MSME sectors which depended on government revenues have also been affected.
To deal with this problem, the Government of India and RBI have come up with relief packages of rupees 1 lakh crores and rupees 50,000 cross respectively to solve liquidity and financial problems of these sectors.
SIDBI(Small Industries or development Bank of India) is working towards providing financial stability and assistance to search startups through schemes like Covid-19 startup assistant scheme(CSAS).
The last date for filing income tax returns has been extended to 30th June, 2021.
The government has also extended the furnishing indirect taxes such as central excise returns due in March, April, May, 2020 to 30th June, 2021.
PM CARES Fund (a Relief in emergency situation fund)has been setup to provide relief to those affected by Covid-19.
Apply for Udyam Certificate Today!
The process of registering your MSME is completely online. The sooner you apply for it the faster you gain access to the government benefits.
An enquiry form is hosted on eudyogaadhaar.org where you can contact our executives regarding any assistance related to Udyam Registration.
You can also write to us at our Contact Us page available on the website.