Planning To Register Your Business With MSME? Know Process, Benefits And More

India is a developing country. Many new businesses start their operations every day. Not all businesses run at a macro level, many of them are small businesses. In order to provide benefits and help these small businesses grow financially, the Ministry of Micro, Small, and Medium Enterprises (MSME) has been created by the government of India. If someone owns a small business or is running a micro-enterprise, then they are advised to register their companies with MSME in order to get various benefits, including cheap loans. Let’s look at the registration process, eligibility, and benefits of MSME.

Who can register themselves with MSME?

– Those companies will be considered microenterprises where the investment does not exceed Rs 1 crore and turnover does not cross Rs 5 crore.

– Companies whose investment does not exceed Rs 10 crore and turnover is not more than Rs 50 crore will be considered small enterprises.

– A medium enterprise has been classified as a business where the investment does not exceed Rs 50 crore and the turnover is less than Rs 250 crore.

How do I register with MSME?

Step 1: Go to the official website: www.udyamregistration.gov.in

Step 2: Then, select ‘New registration’ on the homepage. After clicking that, a registration form will appear.

Step 3: Enter the concerned ‘Aadhaar Number’ and ‘Name of the Entrepreneur’ and click on ‘Validate and Generate OTP’.

Step 4: Fill in the required PAN details on the verification page.

Step 5: Then, the Udyam registration box will appear. Fill in all the details as required.

Step 6: After successful registration, you will get a ‘Thank You’ message with the registration number starting with ‘UDYAM’.

Some Important information needed to register for MSME includes:

– Aadhaar number

– Pan number

– Business address

– Bank account number

– Basic business activity

– NIC (2 digit code)

– Investment details (plant or device details)

– Turnover details

– Partnership deed

– Sales and purchase bill copies

– Copies of licences and bills for purchased machinery

Benefits of Registering Under MSME:

-Loans from banks at affordable interest rates.

– Income tax exemption.

-Licence to set up an industry.

-Preference to registered industries in MSME.

-Electricity discounts.

-Huge tax rebate on excess production.