MSME Registration Portal Crosses 30-lakh Mark Almost a Year

The small scale industry registration or SSI helps businesses register as micro, small or medium-sized enterprises in India. These companies fall under the MSME category and can avail of various subsidies and welfare packages from the Indian government. The coronavirus prompted the government and business owners alike to encourage such registrations. As a result, the Udyog Aadhaar, or MSME registration portal, witnessed a rush of new enrolments. Read on to learn more about the MME registration process and the benefits it offers.

What is MSME Registration?

Small-scale industries are an integral part of the Indian economy. As a result, the government tries to encourage such ventures through various welfare programs and schemes. Micro, small and medium-sized enterprises can sign up under the MSME scheme established by the government. Businesses enrolled under the MSME Development Act, 2006 can avail various benefits, some of which are as follows:

  1. Priority sector lending

  2. Tax exemptions

  3. Ease of capital investment

 

All the enterprises that wish to qualify for such benefits must obtain an MSME or SSI certificate from the Indian government. Both small-scale Industries, known as SSI and MSMEs, come under the purview of this Act. Businesses can register under the MSMED Act online, but the process is lengthy and complicated. To fasten the registration procedure and prevent hassles and delays, business owners can take the help of third-party legal service providers, such as Vakilsearch.

Eligibility Criteria for MSME Registration

Various sectors have different eligibility criteria and thresholds for registering under the MSMED Act. Some of these guidelines are as follows:

  1. All manufacturing units housing machinery having capital investment below ₹10 crores qualify as an MSME

  2. All service-sector enterprises have a maximum capital investment limit of ₹5 crores.

  3. If the business exceeds the upper threshold limit at any time in the future, it loses its MSME status.

 

While the MSME registration is a voluntary process, businesses who wish to secure tax benefits from the government require the SSI or MSME certificate. Hence, small business owners should ensure they apply for this certificate to avail of the government’s welfare schemes.

Documents Required for MSME Registration

  1. Address proof of your manufacturing plant or office

  2. Copies of sale bill and purchase bill

  3. Partnership deed/incorporation certificate/memorandum or articles of association

  4. Copy of bills of machinery purchased

  5. No-objection certificate from the pollution board

 

Firms that are a part of the industrial licensing exemption notification schedule -III don’t require an industrial license. All other businesses must have a provisional registration certificate.

Benefits of MSME Registration

Enrolling under the MSMED Act provides businesses with the following benefits:

  1. Lesser interest rates while applying for loans

  2. Excise exemption scheme and stamp duty exemption

  3. Subsidies in tax

  4. Capital investment subsidies

  5. Concession on electricity bills and power tariff

  6. Improved ease of doing business through the Udyog Aadhaar memorandum

  7. ZED scheme to help small-scale manufacturers export their goods 

  8. Improved chances of gaining government tenders

  9. Reduced fees when filing patents, trademarks and intellectual property rights.

MSME Registration Milestone

The total number of micro, small and medium-sized enterprises registered on the MSME or Udyam portal crossed 30 lakhs recently. The MSME ministry portal announced that the total number of registrations had hit 30.3 lakhs on 17 May 2021. Such registrations include enterprises from various sectors, including manufacturing and services. Data shows that service-sector enrolment vastly outweighs those from the manufacturing industry. The top five areas with the highest registration include food, textiles, clothing, metals and machinery.

 

As per an annual report published by the MSME ministry, micro undertakings constituted 93% of the total sector in 2020-2021. Following far behind are the small-sized enterprises, which make up 6% of total registrations, and medium-sized businesses constitute only 1%. The most enrolments were from the following states in India.

  1. Maharashtra 

  2. Gujarat

  3. Uttar Pradesh

  4. Madhya Pradesh

  5. Punjab

  6. Delhi

  7. Kerala

 

However, the enrolled businesses are only a minuscule part of the total number of enterprises in India. As per the data released by a research organisation called IBEF, India houses over 6.3 crore micro, small and medium-sized businesses. The Indian government launched the Udyam portal last year to aid registration amid the COVID-19 pandemic, and it started accepting registrations in July. The government announced several welfare schemes for such businesses under the Atma Nirbhar Bharat package to uplift such ventures. One of the primary incentives offered that helped such businesses was the offer of ₹3 lakh-crore collateral-free loans. 

 

Additionally, the government also revised the basic definition of MSMEs. These moves will be highly beneficial to business owners as the economy has been badly affected by the coronavirus pandemic. A study done by care ratings showed that over 84% of respondents believed the COVID-19’s second wave had boosted business uncertainty.

 

How Vakilsearch Can Help

Vakilsearch has decades’ worth of experience in aiding all kinds of business registrations. We offer a comprehensive MSME registration package that includes a free consultation to help our experts understand your needs and requirements. After that, our representatives will verify some essential data and check all your files thoroughly to ensure they comply with government guidelines. Our team will then connect you to a dedicated affiliate who will process your MSME application online and provide you with the certificate in 15 days. With us by your side, you will no longer have to worry about missed deadlines and rejected applications. What are you waiting for now? Start the business of your dreams today with us by your side!


 

Know more: msme/ssi registration online

Dofollow

Share
LEAVE A REPLY
Related Post
COMMENTS
  1. author
    27 Aug 2019
    Tomas Mandy

    Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius

    1. author
      27 Aug 2019
      Britney Millner

      Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius

  2. author
    27 Aug 2019
    Simon Downey

    Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius