What is MSME registration?

MSME is the abbreviation of Micro, Small, and Medium Enterprises that helps the business to grow with the support of several incentives and programs. Small businesses face several issues in growing while being a part of the growing economy.

The Indian government created a number of schemes to aid small and medium-sized businesses to stimulate new and current firms. To avail of any scheme under the MSME program, the business should be registered under the MSME authority.

What are MSME registration fees?

The government takes no MSME registration fee.

What is the MSME registration online process?

The procedure for MSME registration online is as follows:

Step One: Initiating Procedure

On the MSME portal, select MSME Registration Process and share the necessary details such as company name, registration number, GST number, and others.

Step Two: Enter the Details

In the next step, fill in your personal details such as name, address, PAN, bank account details, and some common features that are mandatory for the MSME registration process.

Step Three: Executive Will Process Application

During this process, the MSME executive after a minute revision of your application shall notify you if there is any discrepancy in the procedure and initiate the required changes.

Step Four: Certification

After filling out the complete form you will get the certificate for MSME Registration. To know how it would be, you can download a copy of the Sample MSME Certificate. The Ministry will not issue you any hard copy of it. You will get a virtual certificate for MSME Registration.

How to check MSME registration by name?

The procedure for checking MSME registration by name is as follows:

Step One: Visit the official website of SME – Udyog Aadhar

Step Two: Enter the registration number of Udyog Aadhar

Step Three: Enter the mobile number that you have your Aadhaar with and verify using the OTP.

Step Four: Click on the verify the option and the status of Udyog Aadhar registration shall be displayed on the screen.

What are the benefits of MSME Registration?

The benefits of MSME registration are as follows:

● 50% subsidy on Patent registration

If you have created something new, the patent registration can be costly. However, if the MSME registration has been executed, there is a 50% subsidy by registering as an MSME. This action aims to inspire more business owners to innovate and create new things. By signing up with their relevant industry, they can take advantage of the 50% subsidy.

● Collateral Free Loans

The possibility of obtaining collateral-free business loans from banks and NBFCs is among the main advantages of MSME registration. In essence, this means that MSMEs and SMEs can now obtain a variety of loans without putting up any collateral, including credit line loans and loans for working capital.

● Exemption of Interest on Overdraft

MSMEs can use the overdraft facility if they have a good credit history and good relations with their banks. MSMEs benefit from a 1% interest rate exemption on overdraft facilities. This might be quite advantageous for MSMEs. MSMEs should check with their lender before utilising this service, as not all banks do.

Over the past few years, India’s entrepreneurial culture has grown quickly. The growth has increased, particularly in rural and semi-urban regions, opening the way for the SME and MSME sectors. The government has launched a number of programmes, deals, and subsidies to encourage more people to participate in the SME and MSME sector and support its growth. When a company registers under the MSME programme, it becomes eligible for a number of tax breaks, municipal programmes, subsidies, and other incentives. Banks assist these companies in growing their enterprises by providing loans to them at a reduced interest rate.