MSME
MSME denotes micro small and medium scale companies and any other enterprise, that might come under these groups. For any economy, MSME companies form its spine, as they foster a greater economic growth. These organizations ensure an equitable growth for all. The Indian government promotes and supports the MSMEs through various schemes, incentives and subsidies. The MSMED Act has been passed to support these companies. MSME companies are medium and small business firms, that comes under the MSME or SSI category. You need to obtain the MSME Registration in order to enjoy the advantages of this act from the Banking sector, State government and the Central government. Firstly, it is necessary to register your company as an MSME with the respective authorities.
How are the enterprises classified?
• Micro enterprises refer to companies in which the investment made in equipment, machinery and plant is not more than INR 1 crore, and the turnover is not more than INR 5 crore.
• Small enterprises refer to companies where the investments made in machinery, equipment or plant is not more than INR 10 crore, and the turnover is not more than INR 50 crore.
• Medium enterprises, where the investment made in equipment, machinery and plant is not more than INR 50 crore, and the turnover is not more than INR 250 crore.
How to become a small, micro or medium enterprise?
Follow the process presented below to register your company as a small, micro or medium enterprise:
• If you want to establish your company as a small, micro or medium enterprise, visit the Udyam Registration website and file the application online. You need not upload any certificate, paper or document as proof. The process takes place on the basis of self-declaration.
• Once the registration is competed, a permanent identity number will be allocated for your enterprise. This number is known as the Udyam Registration Number.Each enterprise is referred to as a Udyam in the portal.
• Once the registration process is completed, the authorities will issue the Udyam Registration Certificate online for your enterprise.
How to register for MSME?
1. Get the form for registration from the Udyam Registration website.
2. No registration fee has to be paid.
3. You would require your Aadhar number for registering your enterprise.
4. In case you have a proprietorship company, you need to furnish the Aadhar number of the proprietor. If it is a partnership business, the Aadhar number of the managing partner would be required. If it is an HUF (Hindu Undivided Family), the Aadhar of the Karta would be needed.
5. For a Cooperative Society, Trust, Society, Limited Liability Partnership or a Company, it is necessary to obtain the authorized signatory or the organization’s PAN and GSTIN, as well as the Aadhar number.
6. If the enterprise is registered with PAN as an Udyam, any missing detail for the previous years have to be furnished, particularly when the company did not have a PAN. This information has to be provided on the basis of self-declaration.
7. It is not possible for an enterprise to file more than a single registration for Udyam. However, the condition is that, a single registration would include all the activities including service, or manufacturing, or both.
8. Anyone who misinterprets intentionally or tries to suppress facts and figure during the self-declaration process is liable to face a penalty under section 27 (Act 7).
How to register an existing enterprise?
1. Every existing company that has been registered as per UAM or EM–Part-II have to register once again on the website of Udyam Registration on or after 1st July 2020.
2. Enterprises that have already been registered prior to June 30th, 2020 would be classified again, according to this notification.
3. The registration for existing enterprises, that had completed registration before June 30, 2020 would be valid up to 31st March 2021.
4. In case an enterprise had registered under the Ministry MSME with any other organization, it has to register once again in the Udyam Registration website.