The SME industry alone contributes 30% of the total GDP, creating employment opportunities for over 110 million people as of September 2019.
Becoming the source of creating such extensive job opportunities for around 40% of the total workforce, there are about 42 million small and medium enterprises alone.
This indicates the subsequent rise in a number of MSME registration across India.
MSMEs and are broadly classified into two categories –
- Micro enterprises (investment below Rs.25 lakh)
- Small enterprises (investment below Rs.5 crore)
- Medium enterprises (investment below Rs.1 crore)
- Service providers
- Micro enterprises (investment below Rs.10 lakh)
- Small enterprises (investment below Rs.20 lakh)
- Medium enterprises (investment below Rs.50 lakh)
Individuals looking to invest in similar micro, small, and medium enterprises need to go through MSME registration procedure and documentation before they can start their business venture and prosper.
The registration process for MSMEs
Entrepreneurs can follow this MSME registration process and register their enterprise online without any hassles –
- Aspiring entrepreneurs can fill up registration form either online or offline. For online application, they need to browse to the official website of Udyog Aadhaar and login as an entrepreneur.
- Fill up essential details as required in the application form pertaining to industry details.
- Individuals applying for MSME registration then need to attach self-certified certificates and other essential documents such as Aadhaar card, bank account details, address, industry name, etc. and submit the application form.
- Individuals need to wait for 2-3 working days before they can receive their MSME registration number.
- They can log in to the official website of Udyog Aadhaar and download MSME registration certificate once they have acquired the MSME registration number.
Once registrants are through with the MSME registration procedure, they can seek potential investment options like MSME loans as they are efficient financing solution. Business funding is essential for the establishment and expansion of any enterprise irrespective of their nature and size.
Furthermore, the above procedure will bring successful results only for eligible individuals who qualify the desired eligibility criteria.
A quick look at the eligibility conditions
Entrepreneurs who wish to avail MSME registration benefits by registering for the same should belong to any of these categories –
- Hindu undivided family,
- Sole proprietorship,
- Private limited company,
- Manufacturing unit,
- Partnership, etc.
All such entities can avail the benefits that accompany the MSME registration and can conveniently opt for MSME loans if they have shortfalls in terms of investment.
To name a few benefits of MSME loan, these can be easy to access and provide borrowers with the flexibility of usage for any business-related expenses.
Moreover, individuals should look upon the necessary documents that needed to be produced while registering for MSMEs.
Documents to produce
- Proof of identity like Voter ID, Aadhaar card, Voter ID, PAN card, etc.
- Proof of address such as Voter ID card, Aadhaar card, Passport, utility bills, etc.
- Address proof of the business or enterprise unit.
- In case operation of the business is on a rented property, individuals need to produce no-objection certificate from the landlord.
Subsequently, MSME registration online is a necessary step for enterprises if they wish to avail the major benefits as follows –
- Exemptions from income tax.
- NSIC and credit rating.
- Benefit in ISO certification.
- Subsidy on patent registration.
- Low-interest business loan.
- Easily available loan.
Financial institutions like Bajaj Finserv readily provide loans to enterprises having MSME registration.
MSME registration in India has witnessed substantial growth due to the encouragement in the establishment of businesses. It has created substantial employment opportunities as well. Qualified individuals thereby should keep the required documents handy and apply using the above-mentioned procedure to acquire a registration certificate.