MSME stands for Micro, Small, and Medium Enterprises. It is a classification of businesses based on their investment in plant and machinery (for manufacturing enterprises) or equipment (for service enterprises), and their annual turnover. These enterprises are crucial to the economic development of a country, particularly in creating jobs, fostering entrepreneurship, and contributing to industrialization.
Benefits of MSME:- Bank Loans: Easier access to credit and loans from banks at lower interest rates.
- Subsidies and Incentives: Eligibility for various government subsidies, incentives, and schemes.
- Tax Benefits: Certain tax rebates and exemptions.
- Market Access: Easier access to government tenders and a preference in procurement policies.
- Protection Against Delayed Payments: Legal protection against delayed payments from buyers.
MSMEs are considered the backbone of the economy, especially in developing countries like India, due to their role in promoting sustainable and inclusive economic growth.
Step-by-Step Guide to Register for MSME Registration
Applying for MSME (Micro, Small, and Medium Enterprises) registration in India can be done online through the Udyam Registration portal. Here’s a step-by-step guide:
1. Visit the Udyam Registration Portal
- Go to the official Udyam Registration website: https://udyamregistration.gov.in.
2. Choose New or Existing Enterprise
- Select whether you are registering a new enterprise or migrating from the existing Udyog Aadhaar registration.
3. Enter Aadhaar Details
- Enter the Aadhaar number of the applicant (proprietor, partner, or director).
- Fill in the name as per the Aadhaar card.
4. Validate Aadhaar
- Validate the Aadhaar details through an OTP sent to the registered mobile number linked with the Aadhaar.
5. Fill in Enterprise Details
- Name of the enterprise: Provide the name of your business.
- Type of organization: Choose the type of organization (Proprietorship, Partnership, Company, etc.).
- PAN Card: Enter your PAN details (for company registration).
6. Fill in Business Information
- Location: Provide the address of the business.
- Commencement Date: Enter the date when the business started.
- Bank Account Details: Provide the bank account number and IFSC code.
- Major Activity: Select the primary activity of the enterprise (Manufacturing or Service).
7. Investment and Turnover Details
- Investment in Plant and Machinery/Equipment: Enter the amount invested in plant and machinery.
- Turnover Details: Provide the turnover details of the previous financial year.
8. Upload Documents
- Upload necessary documents, including a scanned copy of your Aadhaar card and PAN card, if applicable.
9. Self-Declaration
- Submit a self-declaration stating that all information provided is true.
10. Final Submission
- After filling in all the details, click on the Submit and Get Final OTP button.
- Enter the OTP sent to your registered mobile number and submit the form.
11. Receive Udyam Registration Certificate
- Upon successful registration, you will receive a Udyam Registration Number (URN) and a digital certificate.
This registration is essential for availing various government schemes, subsidies, and benefits offered to MSMEs in India.
Categories of MSME in India
As per the latest classification:
Micro Enterprises:
- Investment: Up to ₹1 crore
- Turnover: Up to ₹5 crore
Small Enterprises:
- Investment: More than ₹1 crore and up to ₹10 crore
- Turnover: More than ₹5 crore and up to ₹50 crore
Medium Enterprises:
- Investment: More than ₹10 crore and up to ₹50 crore
- Turnover: More than ₹50 crore and up to ₹250 crore
Importance of MSMEs
- Employment Generation: MSMEs are significant job creators, particularly in rural and semi-urban areas.
- Contribution to GDP: They contribute substantially to a country’s Gross Domestic Product (GDP).
- Exports: MSMEs also play a vital role in promoting exports and thus earning foreign exchange.
- Balanced Regional Development: By fostering entrepreneurship, MSMEs contribute to the balanced development of various regions.