MSME stands for Medium, Small and Micro Enterprises. MSME is the model of most of the startup businesses in India today. These industries are the backbone of the economy due to their flourishing employment options, which provide a stable opportunity for the youth of tomorrow. Running a business entails many hindrances along with the setup. Still, a business plan and the necessary documents are a must to launch even a basic tea stall.
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What is MSME?
All rising businesses are registered under the Micro, Small and Medium Enterprises Development Act, 2006. These companies are categorised based on their plant, machinery, and annual turnover investment. If the annual turnover is not more than five crores and the investment is less than one crore, it’s a micro-enterprise. If the annual turnover is not more than 50 crore and the investment is less than ten crores, it’s a small enterprise. If the turnover is not more than 250 crore and the investment is less than 50 crore, it’s a medium enterprise.
The Medium, Small and Medium Enterprise(MSME) certificate is received after they register under the government’s scheme of MSME. This is evidence of your legal registration under the law. This certificate can help you avail of government schemes, benefits and authorisation rights. However, this certificate is valid for a single business, and every time you run a new business, you have to obtain a separate certificate for the same. The registration process is relatively easy and can be completed quickly with the necessary documents.
Documents necessary for MSME Certificate
The best part about the entire process is that everything is done online nowadays. So you do not have to worry about getting extra documents and linking them.
These are the most necessary details for every business; Pan and GST linked details shall be extracted through the identification cards. You have to register under Udhayam Aadhar Registration to avail all the benefits available for MSME companies. Udyog Adhar is no longer in action, as all businesses are registered under Udhyam Adhar.
MSME Certificate Fees
Many brokers and legal offices can help you with your registration, so the fees depend on the organisation that helps you with the process. There are no fees when you register through the government Udhyam Adhar site, and the registration can be done online. However, if there is much work to be done and there is no time to gather documents, you can hire attorneys for legal work.
MSME Registration Certificate
After registration of the business through the government portal, You will receive a reference number with a successful registration message. The MSME certificate is awarded to the email address of the entrepreneur after their successful verification of registration on the portal. You will receive the virtual certificate a few days after the registration with a lifetime validity warranty, and this certificate is valid forever. You need not renew it for the same business.
The MSME certificate is good as long as it fits the classification category. If the turnover exceeds the limit of a medium enterprise, it ceases to be valid, as the certificate only benefits the small and medium businesses.
MSME Certificate Online
Entrepreneurs who have registered under the Udyam Adhar portal can access their certificate online as follows
- Click Print/Verify Udyam Certificate on the homepage of the Udyam Adhar portal
- Next page, enter your Udyam Adhar registration number and mobile number, which will generate your one time password
- Enter the OTP and click on “Print Certificate”
The one-time password checks the entrepreneur’s validity; after the generation, the MSME certificate appears on the screen, and the company can download the certificate. You can also check your MSME registration number through the earlier reference number in your email ID.
Who Can Apply for MSME Certificate
Any business entity can obtain MSME registration or Udyog Aadhaar. Proprietorships, Hindu Undivided Families, Partnership Firms, One Person Companies, Limited Liability Partnerships, Private Limited Companies, Limited Companies, Producer Companies, any association of persons, co-operative societies, or any other undertaking can all apply for MSME registration in India.
Small businesses with MSME registration are eligible for various benefits under the Micro, Small, and Medium Enterprises Development Act of 2006. As a result, it is recommended that all small businesses obtain MSME registration or Udyog Aadhaar after they begin operations.
Micro, Small, and Medium Enterprise (MSME) loans are credit facilities provided by financial institutions in the form of a term loan, overdraft, cash credit, letter of credit, or working capital loan to individuals, self-employed professionals, MSMEs, startups, sole proprietorships, partnerships, and a variety of other business entities. MSME loans can be used for several purposes, including business expansion, starting a new business, meeting day-to-day business requirements, managing or increasing cash flow, purchasing equipment/machinery, paying off rent, and so on.
MSME Registration and certificate is very important for a business as it provides many benefits and loans essential for a company to survive in the first year of its launch. If you’re not sure about the whole process and would require advice, do not hesitate to reach out to financial and legal experts for further assistance.