MSME Registration Benefits in India: Your Ultimate Guide

MSME Registration benefits your business on a large scale. The micro, small and medium enterprises play a vital role in the economic growth of India. If you are a business owner or searching for support to scale, an MSME registration benefits your business largely. Besides, you have access to various benefits, starting from getting loans to availing the government schemes.

Sounds like a beneficial opportunity for you, right? Let’s read together, as this blog will be your ultimate guide on how an MSME registration benefits your business in India.

What are MSMEs in India?

Before diving directly into the discussion, let me explain what MSMEs actually are.  MSMEs signify Micro, Small and Medium enterprises. The Government of India uses this categorisation for businesses. The motive behind this is to support businesses based on their investment, turnover and size. For the owners of small or micro-level businesses, an MSME registration benefits by giving a structure. It also helps to get the support and recognition that you crave! 

Do you know that MSMEs have a key role in enhancing the Indian economy? MSMEs generates  It effectively generates 30.1% of India’s GDP, 35.4% of its manufacturing. Besides, MSMEs account for 45.73% exports in India.

Hence, an MSME registration benefits your business. It gives an opportunity to scale. Moreover, you can be a part of a community that powers the Indian economy!

What is MSME registration?

In terms of getting MSME registration benefits, you need to opt for an MSME registration/ MSME registration certificate. If you don’t know what MSME registration means, let me tell you:

The Government of India introduced the MSMED Registration Act in 2006. It is also known as Udyam registration after 2020. An MSME registration benefits you in supporting small and medium-sized businesses in India in scaling up.

It is not mandatory to register every small and medium sized businesses under MSME. However, an MSME registration benefits in terms of tax, credit facilities and setting up your business.

MSME registration benefits

Want to know more about the MSME registration benefits? Here it is, simplified for you!

• An MSME registration benefits by giving you low-interest bank loans.

This means you can access the resources with less burden of interest rates

• MAT credit can be carried forward for up to 15 years as per income tax provisions (not exclusive to MSMEs).
• An MSME registration benefits in cost reduction when you are going for trademark registration.
• Feeling scared about setting up your industry?

An MSME registration benefits you in getting rebates and allowances.

• You must have heard about government tenders! An MSME registration benefits in giving easy access to government marketplaces and e- tenders.

If you have read so far and are thinking these are all about MSME registration benefits, let me tell you: No, it is not.

Here are some more MSME registration benefits for your small and medium-sized business:

• Think about the government schemes. An MSME registration benefits in credit Guarantee Trust Fund for Micro and Small businesses
• With an MSME registration benefits in getting technology and quality upgradation for supporting MSMEs
• Are you feeling stuck in your business due to promotions?

An MSME registration supports you with market promotion and development schemes

• The domestic market promotion scheme is there to support your business across India.
• Furthermore, it is a scheme for helping rural industry, entrepreneurship and innovation all over the country.

Who can opt for MSME registration?

Are you a manufacturer? Do you operate in the service industries? Are you a wholesaler? A retailer? Does your business fulfil all the classification limits of MSMEs? If the answer to any of these questions is yes, you can opt for an MSME registration. Without MSME registration, you cannot get the benefits I have mentioned before.

Below is a list to help you understand the classes.

• Partnership firm
• Limited liabilities company
• Individual business, startup or an entrepreneur
• Self-help group
• Trust
• Co-operative society
• Private or public limited company
• Sole proprietorship

Getting an MSME registration benefits you to be more financially strong. It also helps in increasing trust and transparency. As a result, you can gain easy investments in future.

What is the process to get MSME registration benefits?

To get MSME registration benefits, you need an MSME registration first. You can register your business through the official portal of the Government of India.

• Firstly, visit the https://udyamregistration.gov.in/UdyamRegistration.aspx. It is the official Udyam registration portal. Here, you can complete the MSME registration process.
• If you are a new entrepreneur and you haven’t registered your business yet, follow the process below for getting an MSME registration:

• 1: Log in to the portal Udyam Registration and choose the option and click “For New Entrepreneurs who are not Registered yet as MSME or those with EM-II” (it is shown on the home page).
• 2: On the next page, you need to enter your Aadhaar number and the name of the entrepreneur (If you are the entrepreneur, enter your name)
• 3: Once done, click on the “Validate and Generate OTP Button” and enter the OTP.  In this, your PAN will be verified.
• 4: Now, please enter the “Type of Organisation” you are operating, along with the PAN number.
• 5: Next, click on the “Validate PAN” option. This portal collects the PAN details and verifies the PAN number.
• 6: Once your PAN is verified, the Udyam Registration form is open for you to fill in your personal details. Here, don’t forget to enter the details of your business.
• 7: Now, enter the investment and turnover details. You have to select the declaration form and click the “submit and get final OTP” button.
• 8: Give the OTP and submit the final form.

After this, you will receive your MSME registration certificate via email. This certificate is proof of your MSME registration.

The documents you need for getting MSME registration benefits

You can get MSME registration benefits when you get your MSME registration certificate. For this, the documents you need:

• Adhar Card
• PAN card and
• GSTIN if your enterprise is eligible for GST registration

These are the documents you require for MSME registration. It is very simple, and it can be completed by anyone.

Final Verdict

To conclude our discussion, the MSME registration benefits you in various ways. It is a powerful tool for any small and medium-sized businesses all over India. This supports your growth, improves access to credit, and shields you against delayed payments. From tax subsidies to government tenders, an MSME registration benefits you in giving advantages. These benefits can make a big difference in the success of your business.

So, what are you waiting for? If you are running any small or medium-sized business, register your business under MSME and get all the benefits you dream about.

FAQs

1. Is MSME registration mandatory to get all the government benefits?

Yes, getting an MSME registration is mandatory for getting all the government schemes, loans and tax benefits.

2. I am a sole proprietor. Can I register under MSME?

No, MSME registration is not mandatory, but it is mandatory to avail MSME-specific government schemes, subsidies, and protections.

3. How long will my MSME registration be valid?

MSME (Udyam) registration has no expiry, but details such as turnover and investment are auto-updated via PAN/GST, and businesses must remain within MSME limits.