MSME Registration In India: Procedure, Documents & Benefits
Registration can play a crucial role in your MSME’s overall growth. Get to know about MSME registration procedure & documents required to help you register easily!
MSMEs (Micro, Small and Medium Enterprises) have become the backbone of the Indian economy. These companies, although small, constitute the grass roots level where raw materials or vital products/services are provided to customers or large companies. These companies are classified into two main categories: Services and Manufacturing. However, similar to other types of companies, MSMEs also require capital to start the company and expand. Such companies also apply for business loans to fulfill their capital requirements.
Registration is the first step in starting an MSME. This blog will help you understand the MSME registration process in India, along with the documents required and MSME’s benefits.
MSME Registration In India: The Procedure
Every company in India must be registered with the respective authorities to start business operations offline or online. However, the online registration process called Udyam registration is faster and more effective for MSMEs.
Step 1: Visit The Official Website
Head over to the official website of Udyam registration- https://udyamregistration.gov.in/. Navigate to the section “Welcome to Register Here” and click on the option “For New Entrepreneurs” who are not registered as MSMEs or those with EM-II.
Step 2: Personal Information
A new window will open where you will be required to enter your twelve-digit Aadhaar number. Once entered, click “Validate & Generate OTP '' and enter the OTP you receive on your Aadhar-linked mobile number.
Step 3: PAN Number
After entering the Aadhar number, you will have to choose the type of your firm among Micro, Small or Medium enterprises, based on the annual turnover. You will need to enter the PAN number and click on “Validate.”
Step 4: Correspondence
Once you have entered all the above details, you must enter the full postal address and office address of the MSME. This includes entering the district name where the MSME is situated along with its pin code, state, email address, and mobile number.
Step 5: Bank Details
Next, enter the bank details, including the bank’s account number and IFSC code, and click on “Submit.”
Step 6: Enterprise Details
In enterprise details, mention the main business activity, i.e., manufacturing or services, and the number of employees.
Step 7: Approval
The final step is to select the District Industry Centre (DIC). Once done, accept the terms and conditions and click on “Submit” and “Generate OTP.” Enter the OTP and click on “Final Submit” to get the registration number.
Documents Required For MSME Registration
It is wise to keep the documents listed below handy to ensure no delays in the registration process. Here are the documents required for MSME Registration:
• Partnership Deed:
The partnership deed is the registration document if your business is a partnership. You must submit a copy of the Articles of Association and Memorandum of Association if your business is a company.
• Business Address Proof:
If you own business premises, you must submit business address proof documents such as a property tax receipt, allotment letter, and rent receipt.
• Purchase Bill And Sale Bill:
To provide proof of business transactions, you must present a purchase or sale bill.
• Licenses And Machinery Bills:
You must submit a copy of the industrial license and the bills or receipts of a machinery purchase.
Benefits Of MSMEs
The Indian government offers several benefits to MSMEs. Some of them are:
• Tax Rebates:There are numerous tax rebates offered to MSMEs as tax deductions.
• MAT:MSMEs can carry forward the Minimum Alternate Tax Credit for up to 15 years.
• Loans:MSMEs can avail loans at a lower interest rate.
• Tenders:MSMEs can apply to government tenders and are given priority.
Apply For A Business Loan For MSME With IIFL
IIFL Finance is India’s leading financial services company that provides comprehensive and customized business loans you can use to fulfill your capital requirement. The business loan offers instant funds up to Rs 30 lakh with a quick disbursal process. You can apply for the loan online by verifying your KYC details or visiting IIFL Finance nearest branch. The loan application is paperless, with only minimal business loan documents needed.
Q.1: Can I apply for a business loan with IIFL for MSMEs?
Ans: Yes, IIFL Finance provides business loans to MSMEs at attractive and affordable interest rates.
Q.2: How much does it cost to register an MSME online?
Ans: The registration process for MSMEs is entirely free of cost.
Q.3: Which certificate is provided after successful registration?
Ans: An e-certificate, namely, the “Udyam Registration Certificate” is issued on completion of the registration process.