The biggest contributors to the growth and development of the Indian Economy are Micro, Small and Medium Enterprises. These entities are on a small scale, but their contribution is remarkable. That is one of the reasons the government has taken various steps to uplift the MSMEs in India. MSME Registration is one of the gifts of the Indian government to the MSMEs, which makes them recognised and eligible to take various available benefits or advantages specifically for the MSME sector. It is compulsory to get this registration, called MSME or Udyam registration, to get the various available benefits of an MSME registration. The current write-up will discuss the benefits of an MSME registration in detail so that it will be clear why MSMEs should take this registration.
Key Benefits of an MSME Registration
This registration is called udyam or MSME registration, has a number of benefits, out of which a few most important and relevant are mentioned below for the reference of those who want to register their MSMEs:
- MSME Registration is a kind of registration that is a permanent registration. Once any MSME obtains it, it will be given for a lifetime
- It works as the basic identification number with respect to an enterprise.
- It is a paperless online registration that can be completed by the owner of the MSME itself.
- It is a one-time license that indicates that once the MSME obtain it, there will be no need to renew this registration. It is one of the key benefits of MSME registration.
- On the registration certificate of MSME, any number of activities can be mentioned. For example, if one is involved in manufacturing as well as selling the goods, then both can be mentioned on the single certificate of registration.
- This registration, called MSME or Udym registration, also helps in getting the benefits or advantages of the various schemes of the government that include but are not limited to the Credit Guarantee Scheme, Public Procurement Policy, and additional edge in Government Tenders and protection.
- This registration makes the MSMEs to become eligible to get the benefits or advantages associated with priority sector lending from the different Banks.
- Can avail the benefit of MSME Samadhaan as well as MSME Sampark Portal
- Easy recovery of the pending amounts is possible after getting this registration
- Can file an online case for recovery of the pending amount
- Trademark registration fees will be lessor for MSME registration holders
Salient Features of MSME Registration
Some of the salient features or benefits of an MSME registration are:
- Anyone may obtain the Udyam Registration for their micro, small and medium enterprise.
- It can be registered through the online government portal, which is specifically for the registration of MSMEs
- The process for Udyam or MSME Registration is fully digitalised as well as paperless, which is another one of the crucial benefits of an MSME registration.
- There is no need to upload any document while completing the process of online registration for the MSMEs.
- The registration process is totally free, and there are no costs or fees to be paid to the government.
- After the completion of the registration process and submitting the form, the applicant will get the certificate of registration
- The certificate of registration has a unique QR Code through which the web page on the portal MSME collects all the details about the enterprise.
- The online system is fully associated with the income tax as well as the GST portal and it can collect all the related information from there.
- Exports will not be taken as part of the turnover of the micro, small and medium enterprises.
- No enterprise shall file or be allowed to get more than one Udyam Registration.
What are the Seven Steps to Get Your Business Registered?
Given below is the step-by-step process to get Udyam registration to avail the various benefits of an MSME registration:
- Go to the official web portal of the MSMEs
- On the home page, you will find the option of “New Registration.” click on the same available option
- Now validate your Adhaar Number
- Choose the type of entity
- Fill in the details that are asked to fill
- Check the form after completing it and submit the application
- After that, you will get your registration certificate
Things One Must Know Before Starting the MSME Registration Process
There are multiple things one must know regarding the registration of MSME before starting the registration process to access all the benefits of an MSME registration. Without knowing about the basic things with respect to this registration, it is not easy to obtain this registration, and without this registration, one cannot get the multiple benefits of MSME registration. Hence, you must know about the following things before starting the registration process:
- Must have the phone number through which Adhaar has been connected for the authentication
- Although no government fees are involved in the registration of MSMEs, you have to pay professional fees for the expert who will do your registration.
- One can get the registration certificate within 2-3 days.
- You must have the essential details regarding your business as well as the person associated with the business.
- Must take the help of the expert so that there will be no issue while registration for MSMEs for availing the multiple benefits of MSME registration
Conclusion
There are many benefits of an MSME registration for micro, small, and medium enterprises. This government-initiated registration provides lifetime recognition, serves as a primary identification number, and involves a hassle-free, paperless online process. Its one-time license eliminates the need for renewal and allows multiple activities to be mentioned on a single certificate. Moreover, MSMEs can leverage this registration to access schemes and the available benefits of an MSME registration, such as priority sector lending, government procurement policies, and easier recovery of pending payments. The registration process is entirely free and digital, with no document uploads required. It’s a vital step for MSMEs looking to enhance their credibility and tap into a range of benefits that can foster growth and sustainability.
