MSME sector has a significant role to play in India’s economy as it is responsible to generate 45% of the country’s industrial employment and helps strengthen its exports.
As a means to help MSMEs flourish, it was declared in the 2019 budget that MSMEs with GSTIN would avail up to 2% interest subsidy on credit above Rs.1 crore.
Similarly, the government also encouraged entrepreneurs to opt for MSME-pro credit facilities, tax benefits, etc.
Nonetheless, to avail benefits under such schemes, individuals need to complete their MSME registration first.
Registration procedure for MSME
The below-mentioned pointers highlight the steps that entrepreneurs must follow to complete the registration process –
Step 1 – Visit the official website of Udyog Aadhaar for MSME Registration.
Step 2 – Provide accurate details like Aadhaar number and your name under ‘Aadhaar Number’ and the ‘Name of Entrepreneur’, respectively.
Step 3 – Generate an OTP on your registered mobile number by clicking on ‘Validate and Generate OTP’.
Steps 4 – Post verification, you will have to fill up the Udyog Aadhar registration form.
Step 5 – Provide the necessary details and check suitable boxes then move on to the ‘Submit’ option.
Once these steps have been followed and the form has been approved, applicants would avail their registration number at the soonest.
Regardless, it must be noted that there is no fee involved to get registered.
This being said, entrepreneurs must make it a point to learn all about the MSME registration process and documentation in details.
To ensure that the MSME registration process is completed successfully, individuals need to furnish a set of vital documents and attach it with their respective registration form.
Here’s a list of such documents that you would need –
- Proof of business address.
- Copies of the latest purchase bill and sale bill.
- Copy of business license.
- Copy of bills of equipment purchased.
- Partnership deed/Memorandum of Association/Articles of Association.
Subsequently, to expand your trading business by availing the benefits extended to registered MSMEs, you would need to provide the requisite set of documents. Furthermore, it has to be ensured that the documents contain uniformly, accurate information.
Benefits of Udhyog Aadhaar registration
The following offers a fair idea of how entrepreneurs can benefit from MSME registration –
- Entrepreneurs can enjoy several tax benefits and rebates.
- The ease of availing credit is relaxed for registered MSME owners. Consequently, individuals who have been planning to avail a Business Loan from leading NBFCs like Bajaj Finserv can avail one without any hassle. Doing so, you would be able to make the most of the situation and would improve the quality of your business operations.
- Entrepreneurs would also be entitled to avail subsidy on their loan interest rate; they will be able to avail a substantial loan at affordable interest. In turn, it makes the repayment process less cumbersome.
- Registered business ventures are more likely to avail government certification and license without going through a lot of hassle.
- They can also access selected government tenders and can further carry forward MAT credit for at least 15 years.
In the case individuals have been planning to expand their business venture, they can make the most of the benefits extended for registered MSMEs and expand their operations accordingly.
Regardless, they must keep it in mind that to avail substantial funding, they need to be aware of how much working capital their business needs.
Once you have figured it out, you can proceed with the expansion strategies, and you’re your enterprise smoothly.
Subsequently, keep in handy information related to the registration process and the requisite documents to streamline the entire process effectively.