MSME Registration – Avail Benefits under Government Schemes

MSME Registration is one crucial step towards getting enrolled as MSME in the current scenario to benefit from schemes. MSME is the backbone of our Indian economy. In India, MSMEs contribute nearly around 8% of the country’s GDP, 45% of the manufacturing output, and approximately 40% of its exports.

The MSME segment has proven to be one of the most highly dynamic/vibrant Indian economy sectors. MSME produces and manufactures a variety of products for both domestic as well as international markets. MSMEs have helped promote the growth and development of various small sectors like khadi, village, and coir industries. They have collaborated and worked with the appropriate ministries, state governments, & stakeholders towards rural areas’ upbringing and raising people’s standards.  MSMEs have played a crucial role in providing ample employment opportunities in rural areas.

They have helped a lot in industrializing these areas with a low capital investment compared to the large industries.

MSME is a complementary unit to large enterprises; it has enormously contributed to socio-economic growth & development. MSMEs also contribute and play an influential role in the country’s prosperity in various areas like flexibility in operations, mobility through the locations, low-investment, low rate of imports, and a high contribution to domestic or local production. With the capability and capacity to deliver appropriate local technology, MSMEs provide cut-throat competition in domestic and international markets.

MSMEs are technology-savvy industries, contributing to creating defense-related items and generating new entrepreneurs by providing required knowledge, training, and skill up-gradation through specialized training centers.

About MSMEs Registration

The new process for MSMEs registration came into effect in the name of Udyam Registration from July 1. The Medium, Small, and Medium Enterprises declared that an MSME in our country should be recognized and known as ‘Udyam’ since the term comes closer to an enterprise’s meaning.

Udyam Registration or MSME registration may be filed online based on self-declaration with no further need and requirement for proof documents, barring Aadhaar, as per the MSME ministry’s notification. Udyam Registration or MSME registration has also been integrated with the IT as well as GST systems. Businesses with the entrepreneur’s memorandum or Udyog Aadhaar Memorandum or any other registration issued by any authority under the MSME ministry will have to re-register themselves through MSME.

Key Highlights of MSMEs Registration

The government has organized a mechanism with a full system of Facilitation for Registration Process that includes:

• An enterprise for registration will be known as Udyam and the process known as ‘Udyam Registration.’
• After MSME registration, permanent registration no. is likely to be delivered.
• The online certificate is issued after completion of the whole process of MSMEs registration.
• The issued certificate will have a dynamic QR Code from which the web page and details about the enterprises can be accessed.
• There shall lie no need for renewal of MSMEs Registration.
• The single window systems at Champions Control Rooms and DICs will help all those who wish to register themselves in the MSME Registration process.
• MSME Registration Process is free, and no fees are required to be paid to anyone.

MSMEs Registration: Must Follow

• MSME Registration is free, paperless, comfortable, and is based on self- declaration
• The MSME registration process is entirely online.
• No further documents or proof are required to be uploaded for registering an MSME as a part of its registration process.
• Only the Adhaar card or its number is enough for registration.
• PAN & GST linked related details on the investment and turnover of MSME enterprises will be taken up automatically from Government databases.
• The online system of registration is integrated with Income Tax and GSTIN systems.
• Having a PAN card & GST number is mandatory from 01.04.2021 for the process of registration.
• No enterprise shall file more than one Udyam Registration. However, any number of activities like manufacturing or service or both may be specified or added in one registration.

Benefits of MSMEs Registration

• Due to the Registration, the MSME can avail of the bank loans as the interest rate is meager, around ~ 1 to 1.5%, much lower than the regular loans.
• Under MSME Registration, enterprises are allowed further credit for the minimum alternate tax to be carried forward up to fifteen years instead of ten.
• Once registered under MSME Registration, getting a patent done or the cost of setting up the industry reduces as many rebates/concessions are available.
• MSME registration helps to acquire government tenders easily as Udyam Registration Portal is integrated with Government e-Marketplace
• The MSME can avail more significant benefits, reliefs under the Government schemes, etc., post registering itself under Udyam registration. Also, there is a one-time settlement fee for non-paid amounts of MSME.

After the registration process of MSME, MSME can avail of the benefits of various Government schemes. One such popular plan is MSME Market Development Assistance, which is the most prominent scheme to regulate the working condition and productivity of MSMEs in the international market.

A Market Development Assistance Scheme is presently operated by the Ministry of Commerce to encourage exporters, including MSME exporters, to access & develop overseas markets. The scheme offers international fairs, exhibitions, study tours abroad, trade delegations, publicity, etc. Direct assistance under MDA for small- scale units availed for individual sales plus study tours, participation in fairs/exhibitions, and promotion. SIDBI operates this direct assistance scheme for financing activities relating to MSME products’ marketing in the international market. The plan encourages the MSME to effectively sell its product through an effective marketing mechanism, which most MSMEs lack. MSME Market development assistance has proved to be essential in the long term for MSMEs to achieve success in the least time with an efficient framework. 

Conclusion

MSME Registration is part and parcel of achieving great benefits in the pipeline for MSMEs in the current scenario. Without undergoing the registration process of MSME Regsitration, MSMEs are likely to miss out on the most attractive opportunities that might lie on their way. The most effective scheme of MSME Market Development Assistance can be achieved post the registration process.